How NOT to be a Small Business Failure Statistic
Do you want to know what the top 21 things that can damage a business? To find out, read on!
1. Poor Customer Experience
2. Not Producing Quality Products and Services
3. Unfortunately, Long-Term Business Problems like Slow Sales or Competitors Outdoes Your Business Growth Potential
4. Small Team Without Strong Leaders and Collaborative Relationships in Place
5. Not Knowing What You Need Before You Inventory Your Own Company Assets
6. Poor Processes and/or Inefficient Workflow (both internal/external)
7. Any Unavoidable Hacking Incident or Breach of Sensitive Data Either Internal or External
8. Ineffective Product Pricing and Drops in Sales Expected With Low Inventory Levels
9. Lack of Proper Marketing and Advertising
10. Business Owner With No Idea on how to Manage or Educate Employees or Talent
11. Not Having a Proper Segmentation System/Strategy in Place so as to Minimize Sales Losses, Yields, and Acquisitions
12. Not Having an Effective Customer Service Team in Place to Handle Complaints and Problems in the Long-run
13. Not Having a Point Person (VP) to Detailedly Manage Your Small Business' Infrastructure and Technology Requirements
14. Poor Processes In Transit - Delays, Delays, Delays...
15. Ineffective Expenses and Budgeting, and Unrealistic Profit Numbers to Expect
16. Marketing, Sales and Purchasing Strategies That Don't Work, or Work Well enough to Compensate for Other Weaknesses in Your Business - This is A BIG ONE!
17. Poor Performance of Your Management Team or Mangers You Have Hired In Place
18. Slow Payments / Slow Collections
19. Lack of or Poor Inventory Controls
20. Poor Accounting Controls, Such as Proper Asset Allocation System and Well-Organized Records Management Procedures in Place
21. No or Ineffective Security Measures Taken to Prevent Downtime or Business Data Leakage
Do you see yourself or your small business in any of the above 21 points? If yes, then it's time to start making changes and improvements!
Who should read this article?
People who want to avoid becoming a statistic in the future. This article is meant to be read by everyone, especially small business owners, managers, executive assistants and even their team.
How to benefit from this article:
By reading this article, you will learn the bottlenecks of your business based on your daily experience and what should be done about them. This can give you a foundation for structuring your company for future growth and success.
A few months ago I was driving in to work, when I passed a group of people gathered outside a store. There was a man there who looked like he just came from the store where I was passing by. He saw me coming and began shouting something at me (I don't know what). I could see that he was angry and frustrated.
Being a former telecommunications employee myself, I started to get concerned. I didn't know why he was shouting at me, but I felt like it might be the case of a disgruntled customer. He was pointing at the store name on my side of the road and then looking at me in him that something wasn't right with what he saw there. However, when I saw him clearly, I realized that it wasn't my company's sign - but rather a competitor's one. As soon as I realized this, I just kept driving.
Note that the man was not angry at me, but rather he was just angry with the competitor's shop. He didn't even know who I was. If he knew that I was an employee in that business and if he saw me before entering the store, then I can almost guarantee that my head would be on a platter!
This episode reminded me about something. A few years back when my company's business was in its growth phase, we placed our signs along the main road to advertise our air conditioning service and maintenance specials to nearby residents. We did advertise outside of our business area because we wanted to be competitive while still keeping a few loyal customers around us happy.
But with our logic, we sent a very wrong message to everyone who drove by our business. We told them that we were there to advertise, but on the other hand, we weren't willing to service their neighborhood.
What a stupid move!
My point is: When you position your business or any of its assets in one place, in one way or form, be it signage, advertisements or even its location - you are bound to miss out on some potential customers who are not located nearby.
I knew this before I decided to put up my company's signs and advertisements too far away from our operation. And I knew that there would be some resistance when some people who wanted our services were not able to get them because they were not within our service radius, which is based on the location of my business.
But because of the way we advertised ourselves in the past, I have already learned a valuable lesson.
We recently repositioned our business by relocating it closer to where it was previously placed, but now in a strategic location - one that is surrounded with many potential customers (that does not necessarily mean competition as we are all different in this business). We also made adjustments in our pricing and sales strategies and we have seen the positive changes already.
The important thing is that we listened to the feedback and acted on it. We changed our business plan quickly, when it was still needed.
Unfortunately, a lot of business owners don't know how to listen to the feedback they receive from customers or even their own employees.
They are too proud or too stubborn to change their business plans or strategies accordingly. And this is why I'm writing this article because I have also experienced these problems myself - right before my company's growth phase started.
Conclusion
The above is a list of pitfalls that we encounter everyday in our businesses. It serves as a reminder for all the small business owners out there to always think twice before advertising, placing signs, manufacturing goods or selling products through the Internet.
It should also give you an idea about what things you should prioritize in the company's growth and expansion stage.
Once again though, I must stress this point: "Advertising is just one of the numerous factors that contribute to your success in any business". You will have to do more steps to make a good impression on your potential customers if you want them to see you or have an impression of what you have or can offer them.