Business Pitfalls

At this time of the year it can be helpful to look back at our business during the last twelve months to evaluate some of our mistakes with the view in mind of not repeating the mistakes in the new year and thereby improving our business. I know what you are saying � mistakes, I make them every day. Well, that probably is going to continue but I�m trying to address the major troubling areas that can have a profound effect on the well-being of any business and its bottom line. 

1. You�re great at what you do but you have no plan to run the business to sell what you do so well. This is number one for a very good reason, it�s through sales and only sales that will make your business a success so you must have a sales plan. In 2007, you should be determined to have a sales plan and fund it initially with a sum of money and thereafter, as sales are produced, a fixed percentage of your sales income must be devoted to funding an ongoing sales plan.
2. Hiring cheap employees. It�s true you do get what you pay for. Finding, hiring and training the right personnel is crucial for your business. It�s always better to wait and find the right person rather than hiring the wrong person.
3. Focusing on one or two areas of your business. To success in business requires many talents � not just one or two areas of expertise. You need to be involved with sales and marketing, operations, finances and administration. Each of these areas must complement and work smoothly with each other. If you recognize a weakness in yourself in any of these areas, you must hire qualified people to assist you.
4. Know the numbers. Knowing the numbers in your business is very important. Each business is unique but if you do not test, you cannot measure and generally you can�t do either without tracking the numbers. You should get in the habit of testing and measuring all aspects of your business. This will help you to make sound business decisions.
5. Business partners. As with any rule, there are always exceptions and, yes, there are examples of partnerships that are successful. But unfortunately most do not work. Therefore, unless you are absolutely sure about that partner that you are considering for your business, do not enter into a partnership but rather it will be more rewarding if you hire the right person to help you out instead.

 I hope you have enjoyed reading these business pitfalls. In the interest of saving you time, I always try to present a summary of each concept for your review. It goes without saying that each and every one of these pitfalls could be greatly expanded upon and I am sure that you are aware of that as it relates to your own business.

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