When you are just starting a small business, there are so many things that can derail you and cause you to fail. The people who are successful know how to avoid these pitfalls to keep their businesses afloat during those important early months in the life of any business. However, many small business owners do not know what to look for in terms of pitfalls. This can be dangerous because they may think everything is going fine, but in reality their business could be teetering on the edge of financial ruin. Small business owners should avoid these mistakes.
At the end of the day, if a business does not have good employees, they are pretty much dead in the water. Therefore, it is critical for every small business owner to become adept at the hiring process. Being able to spot a potentially bad employee before he or she is even hired can save you an enormous amount of wasted time, money and effort. As important as it is to avoid hiring people who could be potentially destructive to your business, you need to do everything you can to hold on to the good employees. This might mean paying them more than you want to in order to keep them from quitting.
2. Not charging enough
It is common for small business owners to not charge enough when they are first starting out. One of the reasons is that they feel the only way that will be able to attract new customers is to offer a price much lower than everyone else. Another reason is that they are not experienced when it comes to choosing a good price. Whatever the reason is, the results of not charging enough for your products and services could result in you going out of business. Attending small business forums can help you learn how to set effective prices for your business.
3. Inefficient customer service
The customer is always right, as the old saying goes. Nowadays, if your customers do not feel like they are receiving the level of customer service that they deserve, they will go elsewhere to buy their products. This is why you should treat every customer like a precious gift. If they make a complaint, do whatever you can to satisfy them and keep them coming back many times in the future. Remember, if a customer is upset with you, they will tell their friends not to shop with you.