Business, according to Business Management Degrees, is a combination of passion, planning, and financing.
Unfortunately, not everyone who works hard will be able to achieve sustainability.
Despite their ambition, 70% of firms fail within ten years.
For the most part, the first few months, or even the first year, may look promising but any upcoming mistakes can destroy everything.
Businesses are at risk of collapsing in the following years because of numerous issues that may arise.
This article outlines the top 3 business mistakes that can lead to the collapse of a business.
In no way are we saying that if you make these mistakes you won’t be successful. We’re just trying to say that we have done these mistakes, and it is through our personal experiences and experienced opinions that we’ve come up with the conclusion to avoid these mistakes in the future.
So are you ready to hear what our top 3 business mistakes are? Let’s get straight into it right now!
1. Trying to do Everything Alone
Probably one of the major causes of this mistake is the motivation to save money and do it yourself.
Well, the simple truth is that for your business to grow, you cannot do everything by yourself.
Business success is a combination of mental and physical initiative. Any role among those two aspects is tough enough on their own.
To shoulder both and still maintain stability is almost impossible.
Involve and include people in your business and in your projects; even though you are not making enough profits to pay them full time, there will be people who believe in your vision that will be willing to support you.
Create a team to handle the necessary tasks. You can plan and design your business strategy and let others execute while you supervise and manage.
Let others be responsible in giving your business the attention it needs through designs, customer support and possibly advertising. Even consider hiring a professional web designer to make your website more user friendly.
Value your time and value your money. Think hard about what it is you can do to get paid the most possible and spend as much of your time and energy doing that role. Allow all the other steps that your business must take be handled by someone you hire. Believe me, especially if you’re a small business owner, your mindset will probably be like ‘I can do it all and save’. This is self-sabotaging your business. Get rid of this mentality as soon as possible and start creating a team you can rely on.
2. Not Being Efficient With Your Business Processes
This is the 21st century, ways of doing business must be technologically compliant. There is no more room for slackers.
You need to learn the necessary technology that can make your business more productive.
Can you imagine a commercial bank in today’s world that has not automated their systems or digitalized their services? That would mean no more internet banking, and every step of the process will now be manual.
I am sure the thought of that is embarrassing.
Avoid the mistake of not digitalizing and leveraging online tools in todays world that can make your business more efficient and will give your business an edge over your competitors. Some examples of tools are good hosting, email automation tools, sms automation tools, simple video editing tools such as InVideo, and more.
Automation is a businesses best friend. But don’t make it obvious that it is automated if it is a marketing campaign. I love being a marketer and personalization is marketing best friend. If possible, incorporate personalization into an automation tool while doing marketing campaigns. It’s very complicated but if you are able to successfully implement a tactic like this that works, you will continue to scale without doing anything.
3. Overspending on Liability Due To No Business Plan
Not having a business plan could lead a business into acquiring more liabilities and overspending on products or services that are not returning in revenue increases.
Anything you acquire with your business funds that will not directly or indirectly contribute to your business profit maximization is a liability.
Therefore, it is crucial to follow a business plan and avoid overspending and unnecessary expenditure. You wouldn’t buy 200 milks if you only need 2 right now, right? They’ll most likely all go out of date before you even to get them. It’s unnecessary expenditure. Forgive my metaphors, I’m not very good at them but I hope you understand what I’m trying to say.
So, as a rule of thumb, do not acquire things that are not needs in your business.
Especially for startups and small businesses, this should be taken seriously if you want to get through the hardest stage of your business growth.
We know you want your business to grow.
You must put measures in place today to ensure that you avoid these killer mistakes. Other mistakes may include lack of communication between the workers and the management leaders, excessive overtime, technical errors, lack of staff, poor supervision, poor selection of staff, and a lack of promotion possibilities.
In conclusion, trying to do everything all by yourself, not being time efficient with your business processes, and overspending and investing on the wrong things are the three biggest business mistakes we’ve personally committed. In no way am I saying these will be your biggest mistakes, or that you will ever face these mistakes. I’m just saying that these were our personal mistakes, and we believe these were our biggest mistakes. Try to avoid these mistakes – that’s all we wanted to say.
Now if you really liked what we had to say, or you enjoy these types of articles make sure to comment down below and let us know. Also, if you have any other business mistakes in mind that you would like to share with everyone, make sure to comment down below and we might update the post if we agree with your advice. Have a productive day business owners and ambitious individuals.