All posts tagged small business

How to Follow Up Better

How to Follow Up Better

Think about how many faces you see and how many people you interact with in a typical day.  It would be impossible to remember each one…unless, of course, that person followed up with you by phone call, email, or handwritten card and reminded you how you met as well as what you discussed.  You would definitely remember that person then.  Improving your follow-up can have a tremendous effect on your bottom line.  Read below for some practical tips to making follow-ups a priority in your business.

  • Don’t underestimate the power of a handwritten note.  We live in a world where technology is everywhere, almost all of our communication is completed via electronic means.  Because of this, people really appreciate the thoughtfulness and time it takes to write a note by hand.  Writing a thank you card or other kind of follow-up note doesn’t have to take an extremely long time; many services are available on the internet, such as SendOutCards.com.  Just tweak them to fit your situation.  Another advantage of the handwritten note:  people tend to keep them longer and then act on them immediately when going through paperwork or paying bills.
  • Do make follow-up calls within 24 hours.  This is the optimal window in which to make a call, especially one in which you are following up with a lead.  You want to make contact while the original meeting is still fresh in your prospect’s mind.  Furthermore, follow-up calls accomplish two important things: offering good customer service, and providing a call to action.  When a prospect receives a call, it begins building that essential relationship upon which a good business is built.  The follow-up call also gives the prospect information about what to do next.  Sharing your business is great, but sharing alone will get you nowhere.  Following up promptly with a phone call is a crucial part of increasing your sales.
  • Be persistent.  Sometimes it takes more than one follow-up gesture to continue the relationship.  Did you send a card a month ago and haven’t heard anything?  Consider sending a quick email or Facebook message to check in or ask a question.  Did your prospect say she’d call and never did?  It’s okay to make that call yourself.  Without being a nuisance, be persistent and consistent with your follow-up methods.  Showing your customers that you are committed to building a mutually beneficial relationship can be as simple as reaching out to them on a regular basis.
  • Build it into your regular schedule.  Following up with prospects and customers can be a daunting task, not to mention ineffective, if it’s only something you do once in a while.  Put it into your regular work schedule, such as daily or weekly.  Once you commit to following up regularly, it will become habitual, and you can begin reaping the benefits of building better business relationships.
  • Connect socially. Try to connect beyond doing business. Many of your clients are your neighbors. You may have similar interests or have mutual friends.  A lot of times in business it’s who you know that gets the sale. Reaching out and developing friendships is the ultimate way to follow up better.

Small businesses and direct sellers have the unique opportunity to interact with their contacts on a more personal level.  Getting there begins with the follow-up.  How do you follow up better?  Please share your ideas with us in the comments section below!

Free e-book “Business Owner’s Road Map to Success.” It has over 50 pages of techniques for everything a small business owner needs to master, from business planning and ethical selling to a success mindset. It’s all there and it’s free for you. To get it, just “Like” our Facebook Page here: http://on.fb.me/KsIN6P Pass it on!

DSEF & CBBB: Decode Fake Customers’ Reviews Online

DSEF & CBBB: Decode Fake Customers’ Reviews Online

Today’s highlighted blog post from the Council on Better Business Bureaus (CBBB):

Decode Fake Customers’ Reviews Online

By Caitlin Vancas

Consumers researching businesses, products and services may find more than just reliable reviews on the web. Recent research by Cornell University indicates that some feedback is actually planted. Prior to purchasing, don’t be persuaded by phony praise. When searching for real reviews, testimonials and posts, consider the following:

Who?

  • Ideally, reviews will come from actual customers. However, some companies hire writers to place positive reviews on themselves; while others employ staff to post negative, damaging comments on competitors. Search reviewers’ names online. See what other companies they are writing about. If it is limited to one industry only, it is possible that responses are rigged. Be suspicious if customers’ names resemble company officials or brands. In some cases, authors can be verifiably tied to companies they are complimenting. The FTC’s Endorsement and Testimonial Guide requires transparency and disclosure. Be doubtful of overly complex or simple screen names, such as “johnsmith123.”

What?

  • Take a good look at wording and tone. If it is filled with marketing messages, scripted taglines or product plugs, it is most likely from company representatives. Don’t trust overly subjective compliments and puffery, such as “life-changing” and beware of false allegations, insults and disparaging attacks from competitors. Look out for identical phrases or similar verbiage from different users. Cut and paste suspicious sentences into search engines to see what is on other sites.

When?

  • If similar messages and posts were placed around the same month, week or day, allegedly by different reviewers, it is likely a “paid” effort.

Where?

  • Beware if all comments are limited to companies’ blogs or testimonial pages. Don’t just read reviews from one site. Consider numerous sources and always check BBB Business Reviews on www.bbb.org.

Why?

  • Business leaders know that consumers rely on online reviews so it may be tempting to mimic favorable feedback. Read “customer” comments with skepticism.

DSEF and Council on Better Business Bureaus (CBBB) fosters honest and responsive relationships between businesses and consumers—instilling consumer confidence and advancing a trustworthy marketplace for all.

About the Better Business Bureaus
As the leader in advancing marketplace trust, Better Business Bureau is an unbiased non-profit organization that sets and upholds high standards for fair and honest business behavior. Every year, more than 87 million consumers rely on BBB Business Reviews® and BBB Wise Giving Reports® to help them find trustworthy businesses and charities across North America. Visitwww.bbb.org/us for more information.

DSEF & CBBB: Watch Your Event Explode When You Use These Three Promotion Paths

DSEF & CBBB: Watch Your Event Explode When You Use These Three Promotion Paths

Today’s highlighted blog post from the Council on Better Business Bureaus (CBBB):

Watch Your Event Explode When You Use These Three Promotion Paths

By Lance Trebesch

TicketPrinting.com and TicketRiver.com’s global customers do such a great job promoting and hosting their events we thought we would share some of their most powerful tips with you.

Today, advertising is a multi-tiered task. Modern event planners need to use all the tools available. After all, you can’t sell tickets if no one knows you have tickets for sale.

Word of Mouth: Before you go viral, go verbal!

  • The Australian music and events PR company Pretty Like Money wanted to sell event tickets to “uni students and urban music lovers” for their recent Hip Hop Halloween. They spread the word that their event would be “a different scene.” Those in search of novelty couldn’t help but get excited about a unique event in the area.
  • In America, Denise Johnson, who coordinated the Alex Johnson Memorial Concert, told us never to overestimate the value of word-of-mouth advertising. She found that she could sell more tickets “one-on-one” than she could through paid advertisements.

Traditional Media: There’s still room for print in a visually- jumbled world.

  • The Swanage and Purbeck Hospitality Association in the UK wanted to promote their village with a comedy festival and our print products helped them spread the word in the area: They used “professional flyers printed and circulated locally plus posters and roadside banners.”
  • In Australia, the Professional Women’s Wrestling Alliance also drums up interest in upcoming matches with printed material. Besides hanging posters, they “hand out fliers to draw the initial attention of the local surrounding areas to where we will be holding events,” combining word-of-mouth with print advertising.

Online Promotions: Share content on your sites and on those of others.

  • Written or videotaped interviews uploaded to allied sites or YouTube work before and after the event. According to UK band Bombskare, “Social media works best,” for spreading the news to their plugged-in fans. They also use QR codes to help bridge the gap from one type of media to another.
  • David  Reynolds of Blue Heron Productions in the U.S. understands that not everyone has the know-how to jumpstart an online campaign. That’s why he encourages the musicians he promotes to help him out: “The younger bands see the benefit of Internet marketing and are generally better at it.” Since his advertising budget is limited, he loves this low-cost, high-tech option for promoting acoustic music.

So use these tips to get the word out, get folks through the door, and watch your event attendance explode!

DSEF and Council on Better Business Bureaus (CBBB) fosters honest and responsive relationships between businesses and consumers—instilling consumer confidence and advancing a trustworthy marketplace for all.

About the Better Business Bureaus
As the leader in advancing marketplace trust, Better Business Bureau is an unbiased non-profit organization that sets and upholds high standards for fair and honest business behavior. Every year, more than 87 million consumers rely on BBB Business Reviews® and BBB Wise Giving Reports® to help them find trustworthy businesses and charities across North America. Visitwww.bbb.org/us for more information.

Common Sense Business Tips

Common Sense Business Tips

If you’re thinking of starting your own business, or even if you already are an entrepreneur, there are certain common sense business practices that apply to any industry.  Check out the following list to see how many you currently incorporate into yours.

  • Keep accurate records.  This includes not only records of transactions, but also receipts from purchases, invoices for services performed or products sold, and all tax documents.  You can choose to keep hard copies, electronic copies, or a combination of both.  However, don’t forget to have a backup somewhere for anything electronic.  The more accurate and organized your records are, the easier it will be to correct a problem if or when it arises.
  • Organize your desk/office.  Wherever your main workspace is, it should be well-kept area; a cluttered, disorganized area will inhibit your productivity.  Even worse, you may be unable to locate an important document or product you need when you actually need it.
  • Treat customers and employees/colleagues with respect.  You’re bound to encounter difficult situations involving the people with whom you do business.  The way you handle such issues speaks a lot about your character and business ethic.  Sometimes problems cannot be avoided, but handling them calmly, professionally, and respectfully will help you maintain relationships that are important to your business.
  • Create a budget and stick to it.  Even when you’re doing well and money is rolling in, it is important to be frugal whenever and wherever you can.  Actually put your budget in writing, and revisit it frequently to see where changes need to be made so you can adjust accordingly based on your business’s evolving needs.
  • Cut down on the multitasking.  It’s inevitable that there has to be some level of multitasking involved in being a small business owner. However, don’t make it the norm.  Start and finish one task at a time to prevent you from losing your train of thought and forgetting important details.  Practice the self-discipline it takes to complete one task at a time and do it well.
  • Seek help, advice, and education.  Identify some industry experts and read their materials, take their workshops, subscribe to their blogs, etc.  There are countless successful entrepreneurs who have come before you; use their experiences to continually learn about how to run and grow your business.
  • Have a positive outlook; expect challenges.  Of course, you want to maintain a positive attitude about your business.  That is why you should always challenge yourself to be the best that you can be, but at the same time, be prepare for the challenges that may arise.  For example, before sinking every last dime into that new marketing plan, figure out what you would do if it falls flat. Being financially and emotionally prepared will help you move past any setbacks.
  • Get involved in the community.  Connecting with other businesses and organizations within your community is extremely beneficial.  It shows that you are vested in the best interests of the community and that you have something valuable to contribute.  Furthermore, it is a great way to network and meet the very people you hope to do business with.  Get in touch with your local chamber of commerce for ideas about how to get involved and who to contact.

How many have you implemented?  What other common sense business tips do you think need to be added to our list?  Please share your ideas below!

Free e-book “Business Owner’s Road Map to Success.” It has over 50 pages of techniques for everything a small business owner needs to master, from business planning and ethical selling to a success mindset. It’s all there and it’s free for you. To get it, just “Like” our Facebook Page here: http://on.fb.me/KsIN6P Pass it on!

Effective Customer Profile to Generate Reorders

Effective Customer Profile to Generate Reorders

In the sales industry, the ability to close a sale is super important for any owner of a thriving business.  However, it doesn’t end there.  Generating reorders from your customers is as important as (or even more important than) the initial sale. Neglecting your reorder business can leave a significant amount of money on the table.

So how do you encourage reorders? It starts with a customer profile.

  • Creating a customer profile. As you work with each customer, create a written or electronic customer profile card that lists important information that will improve your follow-up. Here’s a basic and simple format:

Individual customer profile:

    1. Products/services that interest the customer
    2. Possible duration for reorder
    3. Special dates and occasions
    4. Preference for contact (phone, email, in-person, etc.)
    5. Other unique/special traits
  • Create a profile of a customer who continually comes back to reorder over a long period of time.  What is it about this prospect that makes the person a regular customer?  What wants and needs are being met by you, your product/service, or your relationship that inspires such loyalty? By answering these questions, you have a better idea about what might inspire such loyalty in other customers. Note these on the customer profile.
  • Strategize your marketing methods with the effective customer profile in mind.  In all types of retail, there is an oversaturation of promotions for new customers only.  You can help generate reorders with a marketing strategy that encourages past customers to patronize your business again.  Once you really pinpoint the wants and needs of your customers, you can tailor your marketing directly to them.  A special shopping pass that provides advance access to new products could draw in previous customers, especially if those new products are an improvement upon or an extension of those they already use and love.
  • Use customers’ purchase histories to understand their wants and needs.  Consider what the customer has already purchased as well as what he/she showed interest in, but may not have bought.  For example, let’s say a young woman buys a face cleanser, and as she is paying asks about the anti-aging nighttime cream but does not buy it.  The exchange between you and her may only last a minute or two, but valuable information can be gained by it and should be noted on the customer profile. It’s obvious that she cares about maintaining healthy skin, and you know that she will love your facial cleansing product.  Because she asked about the anti-aging product, it is clear that she does have some concern over whether or not this is something she should start using.  A great way to handle a situation like this is to make a follow-up call a few days after purchase to find out how she likes the cleanser and to give her some more information about the anti-aging cream or other similar products that might complement her nighttime skin care routine.  You’ve now shown her that you care about her satisfaction and are there to further meet her future wants and needs.  Such customer care and personalized information will keep that person coming back.
  • Invest in your customers so they will invest in you.  There are many ways to invest in your customers, and it doesn’t always have to mean cutting into your profits.  Do not disregard the value of offering a free sample; making it low-risk to try your products/services can be very effective for turning a one-time customer into a regular.  However, you should also be investing your time in things like frequent follow-ups and workshops or product demos.  Anything that fosters a good relationship with your customer will be good for your business.

How have you used customer profiles to bring in reorders?  Please share your tips with us in the comments section!

How to Surround Yourself with Success

How to Surround Yourself with Success

Have you ever been sitting next to someone, and they suddenly yawn?  What happens next?  You also find the need to yawn.  It’s a strange phenomenon, but it applies to the way we are influenced by those around us.  People who are positive, upbeat, ambitious, and persistent can be wonderful inspirations because those desirable qualities rub off on us.  Therefore, it is important to reflect a bit on the people with whom you associate and decide if they are having a good influence on you or not.  Read on for some suggestions about how to surround yourself with success.

  • Identify the three major business relationships you have.  Ask yourself questions such as, “Why does this relationship exist?” and “How is each of us benefitting from the relationship?”  Also identify what characteristics of these people are either boosters or detractors.  Do they help you succeed and meet your business goals?  If the answer is no, then consider forming new professional relationships with successful people that you can bring to the forefront of your inner circle.
  • Learn from the negative.  No matter what industry you’re in, there are going to be a number of negative people and/or situations (think Eeyore).  Instead of letting this negativity bog you down and keep you from doing your absolute best, use it to learn what NOT to do and bolster yourself onto your own successful path (think Tigger).  Mind over matter is really important here because sometimes it’s difficult, if not impossible, to avoid being around some level of negativity.  However, you can control how you handle it and what your attitude is going to be.  Will you be an Eeyore or a Tigger?  The choice is yours.
  • You don’t have to actually know successful people to learn from them.  If you are just starting out in your business and have yet to form these ideal relationships, then use resources that are available to you that can reinforce positive and inspiring messages regularly.  Find some successful industry experts that you can aspire to be like; read their books, attend their seminars, follow them on Twitter, etc.  Take what they can offer you about success in business and apply those things to your own situation.
  • Pay it forward.  Maybe those around you who seem negative just need someone to inspire them.  Don’t be afraid to be that person.  For example, it’s a proven fact that people who are trying to lose weight are more successful when they do so with a friend; they might exercise together, plan meals together, or even just drop each other an encouraging email every week.  The same goes for your business relationships.  Your determination to be successful can certainly influence someone else in a positive way if you exude your optimism and drive in all that you do.

Surrounding yourself with success, like many other aspects of business ownership, can be a challenge.  However, it is an important one to take on because your attitude is a key indicator of your success.  What are some ways that you surround yourself with success? We’d love to hear from you in the comments section below!

How to Use LinkedIn for Your Small Business

How to Use LinkedIn for Your Small Business

Raise your hand if you have a LinkedIn account.

Now raise your hand if you haven’t used it since you set it up!

If you’re like many business owners, you set up your LinkedIn account a while ago, but other than serving as an online resume you have no idea what to do with it. But now is the time to change that, because there are many features within LinkedIn that can help you market your small business.

LinkedIn is primarily a networking tool. It is excellent for helping you connect with other professionals with whom you might be able to do business. Whether that’s an employer/employee relationship, a joint venture, or someone that joins your direct sales team, you can find motivated, competent people to connect with for your business when you use LinkedIn effectively.

Here are some ways to take better advantage of your LinkedIn account:

  • Your Profile: Be sure that your LinkedIn profile is complete, and lists all of your experience. Why? Because when people are searching for other people to connect with professionally, they will find you based on the keywords you use in your profile. It’s also a way to highlight your professional experience when people come to check you out. The more experience you have, the more likely it is that someone will choose to work with you.
  • Recommendations: Think about Amazon.com for a moment. Why do you think they include a place for people to leave comments about products? It’s because we’re more likely to believe what other people say about something than what a manufacturer says about its own product. The same holds true for you! When your LinkedIn profile is full of recommendations about how great you are…how committed you are to the professional development of your team…how amazing it is to work with you…people are more likely to believe it! It’s the difference between the resume, and glowing recommendations. Make sure you ask lots of the people that have worked with you to give you recommendations on LinkedIn. It’s an online way to make sure everyone knows how committed you are to the work you do.
  • Groups: LinkedIn also offers Groups, which are an outstanding way to network with others around certain topics, and demonstrate your expertise. Simply search for Groups related to what you do. There are many groups set up for direct sales, product lines, professions, etc. Once you join a group, participate in the conversation, share useful resources, answer questions, and get to know people. As you share great content, people will check out your profile to see who you are (which is why it needs to be complete!) And you can also spark offline conversations with people that may lead to additional business relationships.
  • Answers: Another way to demonstrate your professional expertise on LinkedIn is through LinkedIn Answers. You can find Answers under the “More” section of the LinkedIn top toolbar. Simply browse through the question categories to find questions related to your expertise. Then provide answers to those questions that you can. The more questions you answer, the more you demonstrate your expertise to LinkedIn users, which can lead to future business.

Now all of this, of course, takes time. And you must determine that the target market you want to reach is on LinkedIn. But if LinkedIn’s user base is in line with your goals for social media, making good use of the tools available can help you network professionally and build more opportunities for your business.

Do you use LinkedIn for your business? Does it provide you with additional business opportunities? Would love to read your thoughts on this tool in the comments below.

Free e-book “Business Owner’s Road Map to Success.” It has over 50 pages of techniques for everything a small business owner needs to master, from business planning and ethical selling to a success mindset. It’s all there and it’s free for you. To get it, just “Like” our Facebook Page here: http://on.fb.me/KsIN6P Pass it on!

How to Handle Objections and Rejections

How to Handle Objections and Rejections

Even for the most positive and optimistic person, continuous rejections can begin to wear one down.  However, success cannot and does not happen without obstacles and setbacks.  By modifying your mindset, you will be able to handle objections and rejections, natural parts of being a business owner, with professionalism and grace.

  • Don’t take it personally.  There could be many reasons why someone said no, possibly none of which have anything to do with you.  Perhaps a client could no longer afford your services, or maybe has too many other obligations and can’t commit to your proposed joint venture.  When somebody tells you no, take yourself out of the equation and reflect upon how your request may not meet the person’s needs.
  • Focus only on what you can control.  It’s easy to lose self-confidence when being rejected, but it’s important to remember that you are in control of your own path.  You cannot control the behavior of others, only yourself.  So empower yourself by focusing on the elements of your situation that you can change.
  • Accept rejection as a learning experience.  Even the most successful people in the world, in all fields of work, struggled with any number of setbacks along the way.  The difference is that successful people take those setbacks and learn from them in a positive way.  If possible and appropriate, ask for feedback in the form of constructive criticism when faced with a rejection or objection.  Apply this information to your next attempt, and you will save yourself the headache of making the same mistakes over and over again.  Additionally, the more you learn from one rejection, the better prepared you’ll be to possibly avoid it next time.
  • Don’t let rejection make you afraid to even ask.  When you flip a coin, the chance of it landing on heads or tails is always 50/50, no matter what.  Even if it lands on heads 20 times in a row, that next toss still has the same odds.  This same principle can be applied to your business.  Just because someone said no doesn’t mean that the next person won’t say yes.  Persistence is an essential characteristic of a small business owner, so keep plugging along and you’ll eventually get the answer you’re looking for.
  • Professionalism pays off.  When handling rejection, conduct yourself with a visible level of professionalism and grace.  Express your gratitude that the person took the time to speak with you and your desire to work with them sometime soon.  A positive attitude will give others a good perception of you, which may mean future business with them.  You may not have closed the deal this time, but it’s very possible that they will be in need of your product/service at some point, and if you’ve left them with a good impression, they won’t hesitate to contact you when the time comes.

The most crucial part of handling objections and rejections is to look at them as positive learning experiences that allow you to grow your business and professional relationships.  By using the experience of rejection to your advantage, you will be on your way to success.  How do you deal with rejections?  Please share with us in the comments section below!

Free e-book “Business Owner’s Road Map to Success.” It has over 50 pages of techniques for everything a small business owner needs to master, from business planning and ethical selling to a success mindset. It’s all there and it’s free for you. To get it, just “Like” our Facebook Page here: http://on.fb.me/KsIN6P Pass it on!

How to Get Yourself Focused Every Day

How to Get Yourself Focused Every Day

If you’re someone who is easily distracted, you’re not alone.  Whether you work from home or commute to an office, most workplaces are breeding grounds for diversions.  The good news is that eliminating these distractions can be as simple as turning off your cell phone.  Read on for a step-by-step guide to focus yourself and become more productive, two essential characteristics of a successful entrepreneur.

  1. Organize your work space.  Nothing promotes efficiency like a neat, tidy, and organized office, cubicle, or desk.  Create an organizational system that is suited to your business and style, and make sure everything is put away at the end of your work day.  You will then be able to dive right in tomorrow without the added task of finding what you need in a pile of papers or mis-labeled files.
  2. Break down goals into smaller benchmarks.  Most of your goals involve multiple steps that need to be done over a longer period of time.  For example, re-designing your website can seem like such a monstrous task that we don’t know where to begin…so we never do.  When writing down your goals, break them down into smaller, manageable tasks that can be completed in a few hours.  You will be finishing them regularly and you will know that you are on the path to overall goal achievement, which can be an incredibly motivating factor.
  3. Prioritize.  There are so many possible tasks to be working on over the course of any given day, so by prioritizing them, you relieve the pressure of having to complete every single one.  Identify just a few important and/or time-sensitive tasks and forget the rest.  Once your work is completed, revisit the list and prioritize again for the next day.
  4. Say goodbye to distractions.  A ringing cell phone, the high-pitched text message alert, the ping of the email notification, your multiple social networking profiles, your instant message window…these are all  taking time away from your task at hand.  Yes, those things need to be attended to, but silence that phone or disable the internet connection while working on other things.  Schedule a specific time during your work day that is dedicated only to catching up on email correspondence, for example, or checking how many times your blog link was retweeted.  Knowing that this time is earmarked, you won’t stress out about how many messages you may be missing while you go about your day.
  5. Give yourself a break.  Our brains use lots of energy while we work, so it’s important to take even a quick break every 60-90 minutes of continuous work.  Have a healthy snack, get up and stretch your legs, or listen to your favorite song.  Anything that helps you recharge will be a valuable asset to your stamina, which is crucial to continuous productivity.

Getting productive and staying that way certainly takes a large amount of self-discipline.  You most likely already have that in you as a small business owner.  Embrace your strengths and use them to make the most of your precious time. How to you focus yourself every day?  Please share your suggestions in the comments below!

Free e-book “Business Owner’s Road Map to Success.” It has over 50 pages of techniques for everything a small business owner needs to master, from business planning and ethical selling to a success mindset. It’s all there and it’s free for you. To get it, just “Like” our Facebook Page here: http://on.fb.me/KsIN6P Pass it on!

Top Ten Small Business Pitfalls

Top Ten Small Business Pitfalls

Did you ever hear the phrase, “Hindsight is 20/20.”? It’s easy to look back on our mistakes and identify what went wrong after the fact.  It is of utmost importance to avoid common pitfalls made by millions of others before you.  By learning from their mistakes, you can make smart decisions for your business and enjoy making your entrepreneurial dreams come true.  Here are the top ten pitfalls to avoid in your business and how to avoid them:

  1. Failure to educate yourself before you begin – There is so much that goes into owning a business that goes beyond knowing your industry.  Small business ownership is a marathon, not a sprint, so stamina is the key.  Since you will most likely be watching your pennies, take advantage of free resources, like those provided by the Small Business Administration .
  2. A non-existent or hastily written business plan – Believe it or not, too many people start up businesses without a plan.  Don’t worry; you don’t need an MBA degree to write up a business plan.  An effective business plan should include a description of your business; information about your industry, competitors, suppliers, and target demographic; a marketing strategy; and finances.
  3. Spending money unnecessarily – To control startup costs, consider the following: leasing any equipment you may need instead of buying, buying supplies second hand, purchasing a minimal amount of inventory to avoid overstocking, and dealing in cash as often as possible.
  4. Not collecting payments promptly – Remember, you are held to a tight standard in having to pay your own creditors; hold your customers to the same standard.  Always provide an invoice no matter how small the amount, follow up when necessary, and don’t be afraid to implement a cash upfront policy for delinquent accounts.
  5. Forgetting to plan for a rainy day – So your efforts are paying off; inventory is flying off the shelves, you’re teeming with new customers, and profits are way up.  Enjoy it of course, but don’t forget to save some of that hard earned cash for an unforeseen setback.  Just like the overall economy, certain industries experiences cycles of good times and bad.  Your business will be able to survive the hard times if you put away some money and have a contingency plan for if things suddenly go south.
  6. Getting set in your ways – Even the most successful business owners can have a difficult time adjusting to new trends in the industry.  Keep abreast of any changes, including innovative new products/services, a shift in customer needs/wants, price points, marketing techniques, and technology.  Chances are that your customers are aware of what’s new, so don’t get left in the dark.
  7. Doing it all yourself – If you have employees, trust in their abilities and delegate responsibilities.  Trying to meet every obligation on your own and micromanaging are both recipes for burnout and disaster.  Empower your staff by handing over certain tasks and projects; you’ll also find that they will become more invested in the success of your business when they know they are an important part of it.
  8. Inability to step away – Once you have established your business, you should make decisions that allow it to run smoothly without you once in awhile.  There will be times when you need to take a few days off for personal obligations, and let’s face it: who doesn’t need a vacation every now and then?
  9. Poor marketing – From traditional marketing methods to those of the 21st century, there are more ways to market your business than ever before.  As with anything else in your business, do your research to decide what is best.  It might be a good idea to only focus on one or two methods at first, such as targeted direct mail campaigns and an effective website.  Collect information about what is working and adjust your marketing efforts accordingly.
  10. Lack of discipline – This is especially important if you have a home-based business.  Our households are rife with distractions such as laundry, cleaning, a ringing phone, and even our own children.  These things take time away from your business, which in turn takes money out of your pocket.  Create a strict schedule for yourself and stick to it, make a list of what needs to be done and when, and minimize needless distractions.

What pitfalls have you encountered in your business?  Please share your problems and solutions with us in the comments section below!

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