Categories: Business management

6 Mistakes That Small Business Owners Must Avoid To Make.

small business

While it is true that a large number of small businesses fail within the first few years of establishment, what is not true, even in any business environment, is the impression that more than 80% of them fail within the first 3 years. Certainly, there are some that survive for 4, others for 5 years and more.

Small businesses sometimes fail because of sheer negligence on the part of the owner/operator. While in some cases, it is simply as a result of some management pitfalls or environmental factors.

It is possible to avoid any failure in any small business if the owner/operator keeps these points listed below in mind:

  1. Don’t make any attempt to build a small business meant to appeal to everyone. You must note that structuring a business to appeal to the widest possible range of customers is a good thing, but could end up creating a business that will be weak in several areas rather than strong. “As you like it, sell where you can for you are not for all markets.” -Shakespare.
  2. Don’t start unless you are sure of the availability of the minimum cash requirements. Alternatively, you must have arranged a credit or done a proper projection of revenue and expenses concerning a reasonable period of time.
  3. Do not fail to design a means of detecting bad credit risk early so that you can take steps to avoid credit problems ahead of time.
  4. Don’t use pricing to scare your customers away or destabilise your business. No matter what situation your business may be facing, you must strike a balance between your firm’s need to make profit and your customers’ search for value.
  5. Never postpone savings of the company’s earnings. Do it now; possibly set out a percentage of the earnings to be kept in the business and do it religiously.
  6. Do not be “a- one- man- squad”. Seek advice from experienced people and professionals in your field.
Mary Odoeme

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Mary Odoeme

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