Your small business is your baby. Being unprepared causes potential problems in your small business. Here are the 3 biggest mistakes I see small business owners make that you can could easily avoid:
1. Putting all your eggs in one basket
Having that one large client can be thought of as wonderful. You have cash flow and immediate sales. You are petrified that you might lose this one client so you spend all your time trying to make them happy and with little time left to generate other business. This is a huge mistake that many organizations make, and is easily avoidable. Then all of a sudden, the customer finds someone else to replace your services, and they leave. To avoid this, your strategic plan should make obtaining and keeping other clients a priority, even if your main client makes up 40-50% of your business.
2. Spending cash you need for taxes
33% of your profits are going to be taxed at the end of the year. Many companies forget about the looming tax bill and without a stash of cash, they start the year in a cash crunch. Instead, hoard you cash all year long or have other funds available from a working capital loan. When your accountant tells you the number – you won’t be surprised. You are prepared!
3. Forgetting sales when business is booming
When you are busy delivering your product, keeping the sales process going is often forgotten. Then in six months or a year, when all your products are delivered, your pipeline is dry. You kick yourself for not focusing on business development. A solution - create a simple process that works to generate new business and make it a priority even when you are swamped . My process is writing a blog every week (sometimes I write four in one day and my job is done for the month). I also work with an expert to post my blogs and prepare my newsletters. Your process may be making 3 phone calls a day. Figure out a process that works for you and make it a habit. Going through slow sales periods is painful and often lethal. Keep your sales rhythm going, especially when business is good.
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