Five Big Mistakes that Could Ruin Your Small Business and How to Avoid Them

Many small businesses are stuck in limbo. Sales are sluggish or stagnant, and many small business owners have worn themselves out trying to be all things to their businesses. There are five big mistakes that small businesses often make that hamper growth and hinder business success. But, by taking some time to develop your small business, you can avoid these common mistakes. Even if you have made some of them, you can rebound and get your business back on track.

  1. Focusing on getting the big customer. According author Rhonda Abrams who penned the book “The Successful Business Plan: Secrets & Strategies”, small businesses focus on getting that one big client instead of many little ones. But, what happens if you don’t get the big customer? Are you taking care of your smaller ones? They can make or break your business. It could be worse if your neglected smaller customers left you than if the one big customer left. Together, your small clients pack a powerful punch.
  2. Not diversifying products and services. Today’s customers look for products and services that offer them more value – both in the wallet and in the product or service offered. If you don’t diversify, your competitors will. They will entice your customers away with sweet deals and aggressive sales. Consider repackaging products and offering incentives like coupons and discounts. Bundle services to create a more comprehensive, packaged service offering.
  3. Poor pricing models. Your pricing must be competitive with the market you are serving. Price your products and services too low and customers won’t buy because the perceived value is low. Price them too high and you could knock yourself out of the market.
  4. Not creating a unique selling proposition. Web accessibility has fueled a shop around mentality in consumers. Every competitor out there is touting service and price. And, that’s okay. But, you can’t jump in there with the same thing. You’ve got to give prospective customers a compelling reason to choose your products or services over the competition’s.
  5. Trying to go it alone. Big businesses aren’t created from one person handling everything in the business. They are created by partnering, hiring and relying on the expertise of others. You can’t be successful trying to be all things to your business. There is just too much to do and not enough time for one person to do it. Get help by adding staff or outsourcing.

So how do you overcome these obstacles to your businesses success or fix mistakes you’ve made? Take stock in your business and focus on business development.

Business development is not just for large businesses. Small business owners can benefit from business development, too. Whether your business issue is ineffective pricing, inefficient processes or poor marketing strategy, business development can put your business on the fast track to success by helping you get organized, fill your pipeline with customers, increase profits and avoid or rebound from mistakes.