7 Mistakes Small Business Owners Make and How to Avoid Them

The game really is rigged.??

Once you start making money, it gets increasingly more difficult to level up. In part this is because of the tax code. In part it’s because of the economy. In part it’s because of all the noise on the internet. In part it’s because of the limited time of each day. It is also influenced by past experiences.?

But mostly, it’s because small business owners do not have all the tools needed to level up.?

There is a daily flow to adopt. There are automation tools to deploy. There are rituals that are needed. Routines need to be allowed to bloom. Activity needs to be focused on profitable tasks. Messages need to be clear and concise. Direction needs to create momentum to move onward AND upward.??

So, if the formula is that simple, why do 50% of small businesses fail in the first five years and 90-95% never make it to ten years? It is said that success leaves clues. Conversely, so do mistakes. These seven mistakes are the ones that are easiest to overcome right away (except #4) to create an environment in your business that will foster growth allowing you to level up and break through the barriers holding you back from experiencing success.?

The Seven Mistakes that Lead to Disaster:?

Failing to listen to customers?

This is where money flows from to your business. Each one of your customers is looking to you for a result, tool, or outcome that will help them and provide value that they currently do not have. Therefore, it is critical to climb inside their heads and know what they are thinking. Armed with this, you can create messaging that will guide them to your business.?

Weak Leadership?

There is a huge difference between being a business owner and a business leader. Anyone can own a business, not everyone can lead one. Your customers sense this. It is in the way you show up. How you guide them. How you help them. Lead your customers to the result you promise, don’t just give them a magic pill...??

Hiring the Wrong People?

Many business authors have used a variation of “hire slow, fire fast” when it comes to scaling up businesses. This starts with the need to expand the team, so an ad is run on a job board. The interview looks for skills and asks a few questions about strengths and weaknesses. This uncovers employees who have the hard skills to do the job, but not necessarily the soft skills required to mold a brilliant team. Spend more time defining the people you want on your team and match them up to the roles you need filled that will foster their growth and the growth of the company.

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Undercapitalization?

Know your money, know your business. If you do not have enough money to run the business you will create daily angst. You will constantly chase the next dollar. From you will flow an energy of desperation that is felt by everyone you encounter. Before you jump all in on your business, make sure you have enough runway to make it work. From the moment your business is formed, products are clearly defined, and your sales process is developed, you should have enough money to cover at least six months of living and business expenses.?

Not Understanding the Importance of Marketing?

I once had a client who literally said to me,” Tom, I put my name on the door, where are all my clients?” She was doing nothing else to let her clients know she existed or what she could do for them. Before you consider launching your business, sketch out a business plan so you know what you are doing. Then develop a marketing plan so everyone else can also know what you do. Then focus all your energy into becoming the subject matter expert in your field. As Tommy Lasorda said, “if you fail to plan, you plan to fail.” Build the foundation before you launch your business.?

Not Recognizing the Competition?

The market tells you what people want. We are in an age where there is so much information available that analysts are on cloud nine. Data flows from all pores of the market. Your competition posts on social media, hang out at networking events, host challenges and Facebook groups. Know what they are doing so you can be different. If your market segment is trying to reach the same group of people and move in a herd toward them, go the other way and deliver different results. Be the leader of your field.???

Working on non-profitable activities?

Of all the items on this list, this is the most common problem and difficult to correct. It is easy to get caught in the trap of doing it all. That’s what you are programmed to do when you start your business. But unless you know Quickbooks, hire a bookkeeper (just one example). Your primary responsibilities are to find clients, serve them, and expand your impact. Anything that distracts you from completing your duties should be outsourced, delegated, or automated.??

Putting it all together?

Success leaves clues, as do mistakes. Research what the market needs before spending a ton of time and resources building the perfect app. Pay attention to every new trend and unlock the messaging to guide your perfect client to your business. Focus your energy on generating revenue not other things that pull you away from building a thriving business. And above all, stand out from the noise and lead your clients to the result you promise them. Employ these 7 results right away and create momentum in your business today.??

There is no need to pursue work-life balance. It is not important to put the same amount of each on either side of a scale. But, when both work in harmony, you feel better. You perform better. You show up better. You build better relationships. You set better boundaries. You complete work effectively. You coach your daughter’s soccer team. You go for walks with your spouse. You remember client’s birthdays. You sleep amazingly. You wake up refreshed. And most importantly, you give yourself praise for being great at everything you do. This is the 960 Method. ?

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HobbSolutions is on a journey to help 1,000,000 small business owners create the business of their dreams, control their own economy, and build the life they crave. The journey across the 7 phases of business travels from Surviving to Thriving. Every person deserves true independence and freedom from all that life throws at them while building thriving businesses that constantly grow and support the economies of their employees and partners.?