Many people have the passion and knowledge to become
business owners but do not take time to educate themselves about how to start
and sustain a business. Many business owners cannot generate increased revenues
to produce consistent cash flows due to lack of business skills or business
knowledge. Lack of business skills can cause lost revenue.
Some of the most common mistakes business owners make
are: not accepting multiple forms or payments, credibility - what makes you
different from your competition, having bad credit, limited use of technology, lack
of creativity and not establishing a target market.
As a customer you do business with companies that have
experience, provide good customer service, offer reasonable prices, meet your
needs and have proven that they have sound business skills. Are you providing
the same to your customers?
Don’t let your lack of business skills cost you revenue.
Educate yourself about how to become a successful business owner to help you take
your business to the next level. If you don’t know how to do something, do
research to find out how to do it on your own or hire a professional. Here are 8
guidelines on to increase your business skills and stop losing money.
Automate
Automate your business processes. Create automated
systems to recruit new clients, maintain client databases, product purchases,
setting appointments, tracking metrics, and tracking financials. Automating
your business processes will also help you efficiently handle repetitive tasks
eliminating the risk of error; free up time for other tasks, help you make
better decisions, boost sales and help you remain competitive. This will save you time and money and allow
you to focus more on growing your business.
Communicate Effectively
Use effective ways to communicate with your audience. Free
websites may scare away potential customers who may feel that you are
inexperienced, not serious about your business or that you cannot be
trusted. Free websites also have advertisements
that may distract potential customers from your website. Take the time to hire
a professional web designer and make continual updates as needed. Include
client testimonials, bio, FAQs, resource information and free products or
offers on your website. Capture visitor emails to build your database. Avoid
using free email accounts unless you work in an industry where free email
accounts are not frowned upon. Setup a separate phone number for your business
in your business name.
Find a Mentor
Get a business mentor who can provide advice and lessons
learned on how to grow your business and create a brand. A business mentor will review
the overall marketing performance of your business and will help you devise
strategies to enhance sales for your business. A
business mentor can help you become an expert in the industry and personal life.
Mentors also provide valuable advice, help you solve
problems and help you think strategically about your business.
Get Assistance
Create a support network of family or friends who will
encourage and support you. Hire
experienced professionals to help support your business such as a financial
advisor, lawyer, accountant and office support staff. Hire other professionals as needed to help
you grow your business. You may feel
like you can do everything yourself but that is the quickest way to failure.
Consider outsourcing services as needed. Learn from entrepreneurs who grew into
successful business owners.
Make a First Impression
First impressions are critical to turning prospective
clients into potential clients. Word of mouth is the cheapest and best way to
generate business. If your physical and/or office appearance are of low quality
you may be missing out on potential clients. Always look and speak in a
professional manner. Surround yourself with at least three successful business
owners and ask them for advice on how they achieved their success. If you are
in an industry that focuses heavily on appearance consider hiring a stylist.
Separate Records
Keep personal and business records separate. Using your SSN
as your tax id can cause problems when filing taxes so it is best to obtain an
EIN. This ensures that you keep your
personal life separate from your business and prevents personal liability. Make
sure you file the correct status for your business based on your needs. There
are several options when filing your business status with the IRS such as sole
proprietorship, limited liability corporation, corporation, partnership or
non-profit. Create a separate bank
account, phone number and mailing address for your business. Keep personal and
business credit separate to make it simpler to track accounts and makes it
easier to file your taxes.
Stop Being Mr. Nice Guy
In
a survey of 50 CEOs, Russ Edelman author of “Nice Guys Can Get the Corner
Office: Eight Strategies for Winning in Business Without Being a Jerk” asked
about the impact of "being too nice" on their businesses. The CEOs
surveyed responded by stating that being too nice cost them 8% of their gross
revenues. For a small business that is the difference between going out of
business and generating a profit. If you always
give away free products or services you will never get a profit. Stop working
like you are an unpaid intern and work as a business owner. Create policies
that show others you value your time such as a cancellation or refund
policy. Don’t be afraid to fire customers or vendors if the relationship is
taking up too much of your time, not meeting your needs or cutting into your
revenue.
Use Social Networking
Social networking is the easiest and cheapest way to get new clients and
increase revenue. Create a separate
business profile for your business. Ensure you social network business profile
remains professional. Don’t allow others
to post negative or inappropriate comments on your profile. Ask trusted friends and clients to recommend
your product or service. Continually
engage your audience and get feedback. Determine which social media network
meets your needs and is the most advantageous for your business.
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