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7 Common Small Business Management and Entrepreneurship FAILS

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Small Business ManagementAre you working in your small business—or are you actually working for it? The life of the small business owner is always going to be busy and cluttered with activity, yet just because you’ve got a lot on your plate does not necessarily mean you are effectively driving your business forward. There are a number of small business management and entrepreneurship errors that can leave your company rudderless, your best efforts ineffective—and it’s vital to isolate and prevent these errors from sabotaging your company.

#1 Micromanaging—or, Failing to Give Up Control

When you’re the owner or manager of a small business, the company itself is your baby, and the focus of a great deal of your time and your passion. As such, the common temptation is to seek to control every aspect of the company, micromanaging every last detail. What this accomplishes is only stifling the innovation and drive of your employees, to say nothing of eating up your own time and curbing your productivity. Hire competent people, ensure that they are trained to perform their functions effectively, and then give them the freedom to simply do their work.

#2 Failing to Put Processes in Place

Every business needs goals, but it also needs processes in place that help employees work toward those goals. If you are going to trust your employees to be productive and effective—and also to ensure quality control with your products and services—you need to outline the step-by-step processes that your business implements. Formalize it, as well; an operations manual or handbook is one of the most important small business management and entrepreneurship tools there is.

#3 Spending Your Time with Clutter

To return to our initial point, it is vital for business owners to resist conflating business with productivity. You may be working 12-hour days, but how much are you really getting done? If you’re spending two hours answering e-mails, an hour and a half responding to Facebook inquiries, and four hours making sales calls, then there is no time left over for you to actually run the business. These are the kinds of tasks that are likely better delegated to employees—allowing you to more effectively manage your time.

#4 Not Defining Roles

What are the functions that you expect your administrative assistant to perform? Which person in your company is tasked with updating the company Facebook page, or with responding to reviews on Yelp.com? These are important things to spell out, or else you will end up with some tasks not getting done, and other tasks getting done more than once!

#5 Assuming Your Company Will Sell Itself

You may think you have the best company, product, or service in the world—and you may be right. Your business offerings may be both revolutionary and profoundly valuable—but if customers do not know that your brand exists, or if they are not sure of how they can benefit from your products, then you’re going to go out of business quick. No business sells itself, and sales and marketing are both critical, even for the most appealing and seemingly irresistible products. Failure to market is a major small business management and entrepreneurship blunder!

#6 Misunderstanding Finance

Running your small business is, most fundamentally, not about managing your products and services, or about knowing your niche inside and out. It’s really about finance—understanding cash flow and profit margins, and driving your company’s growth. Small business owners who do not comprehend the basics of finance need to educate themselves immediately, and to realize that finance is really at the heart of their duties.

#7 Underemphasizing Your Biggest Sources of Profit

What’s the most profitable aspect of your business? If you do not know the answer off the top of your head, then there is a good chance you are chasing a buck here and a dollar there but ultimately wasting time, failing to capitalize on your biggest source of revenues. This is especially true when your business is struggling; rather than try to shake things up, instead focus your time and attention on hammering those most profitable aspects of the company.

Small business management and entrepreneurship take time and practice to master—and you can start by ensuring you’re not guilty of any of these common failings.

Every mistake cost money! If you are not sure what to do next let us guide you! 

 

Photo by: Nanosmile

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This article was written by Zsolt Bicskey

Zsolt’s professional background includes work with many companies throughout his native country, donning the mantles of CEO, HR and IT professional, and more.Currently his major focus is on: corporate social media marketing, lead generation, local search optimization, video marketing and mobile marketing.

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