The 5 biggest business mistakes and how to avoid them

There are common mistakes made by all companies and, while you can leave a bad tooth in a big company can completely ruin a small business. These are the five biggest mistakes commonly made up of companies of all sizes and what you can do to avoid them.

1. Not the cash management

This is the greatest cause of bankruptcy and is what keeps most entrepreneurs awake at night (and if it is not necessary!)

Your cash flow is an absolutely essential part of your business. If you have too much to leave or not enough to get there, then you're heading for problems. Although it may seem obvious but is still the most common failing businesses of all sizes.

The challenge for any expansion is that there is usually a gap between what you pay for your suppliers and employees and what you get back from your customers. Most business owners are painfully aware of this when they start their business and sales are few and relatively high costs. However, as sales start to grow, it's easy to take your eye off the ball and forget this gap. And while sales are rising costs are increasing, and also its ability to turn off the short-term costs becomes increasingly difficult. And then there is a slowdown in your sales or your customer and all payments of a sudden your bank balance more tips in red is never done before. And your business can go from boom to bust almost overnight.

The only way to avoid this is to maintain a strict control on cash, and check that with passion. If you have a CFO or FD, even part time, can help you here. Never lose sight of the importance of collecting your debts as soon as possible and always keep a watchful eye on what is happening, what's coming and what you're committed. And make sure you have a forecast system for your future cash, especially if you're in rapid growth.

And if you do not know how to do it, find someone who ago, quickly.

2. Poor marketing

Unfortunately not always the best products that win through in enterprises. There are many great inventions that have fallen in the street because they simply have not been marketed well enough. And it's usually because there was a competitor out there doing a better job of marketing, even if they did not have a better product.

The marketing is about how to communicate what you do for your potential customers. It is on the right that evokes emotional responses in those potential customers. If you're out there, pushing the great feature is your product, will almost always lose to the competitor that tells what the product market will do for them and how to make them feel.

Obviously, if we do not do marketing, and nobody knows that exists. And if vai straight in great big, expensive, scattergun campaigns, and then you can only be pouring cash down the drain.

To succeed you must focus on focused, targeted, emotional, driven benefits of marketing and PR, then you will find the entire sales process will be much easier. It means that your business will grow. And how will that feel?

3. The hiring wrong people

Hiring the wrong person may be one of the most costly errors do. It might be a sales person who can not sell, an accountant who can not add, or a senior manager who tries to steal your work and society.

When you think about the costs of hiring there is much to consider. If you have the recruitment fees, the time and effort you put into the recruitment process; employee's salary and benefits, tax, training, equipment and travel expenses that you have to cover office and development and training of time. And then, if we realize that you have to get rid of them, because they're not working, there can be more time spent going through the removal process, the cost of notice periods, additional benefits and often a few form of income so that it will not mention.

And then you have to start all over again, hiring someone new, having wasted a lot of time, effort, energy and money.

Get your rent in the process Tip Top condition and spend as much time as necessary to get the right person. Do not settle for the best of a bad bunch, and not just pick someone hope and work. Knowing exactly what you're looking for, and design ways to test candidates to get the right people. If you take a day of testing, and then do it, rather than committing a big piece of resources based on a couple of brief chats that pass for interviews.

Check references, candidates research on the Internet, check their previous employers and to seek ways to verify what they say. If should come as no surprise that not everyone is completely honest in their job applications.

4. By losing control

There are many ways that an entrepreneur may lose control of their business. Sometimes it's too delegation of essential elements such as payments to suppliers. Sometimes it's too reliance on a management team who have a different agenda in mind. Sometimes this is through research funding and give too much of the company to investors.

As entrepreneur, is rare that you find someone you care so much about your business, customers, staff and investors like you. This is a great idea to bring in a management team to run your business for you but do not be surprised if their agendas and aspirations career, which do not always understand.

You can not do everything, and there is a point where you have to trust other people. It is the key to make sure they know what you expect from them and to make sure we have a way of controlling what they do.

Control is always information and the ability to make decisions. When you have good information you can see what is really happening and then you can take the right decisions. This may be information about what is fact and what is sold. And what conditions. It can be information on any significant agreement, deal or commitment that the company is entering. Creating large computer systems management that really tell you what's going on in the field.

Be careful of anyone who tries to get in a position of control over your business. That includes staff, investors, other administrators, suppliers, customers and banks. Thinking in what you're giving away in any agreement and to seek ways to protect yourself and stay in control if you want to protect the value of your company. When someone else can make decisions about your business, then you've lost control.

5. Forgetting the score

Finally, one of the most common mistakes as a business grows bigger forget the very customers that supported the growth of society, in the first place.

When you start in business you tend to stay close to your customers. It's like building a reputation and make sure to provide first-class service. You'll often be in the name terms with many of them and know exactly what you sold them.

As you grow, the gap between you as the owner and customers can grow bigger and bigger. And as he does, you can stop so much meaning to you, so you start to see how just names and numbers on a report rather than the people you are providing a service to.

And how disconnection that grows, it may be easy to forget what it was that led customers to you in the first place. The personal touch that made you stand out from the competition. And after a little 'your company becomes just another commodity provider and your customers start the current trend to competition.

Stay connected.

Always remember that putting your business where it is today. And 'your clients and customers who pay the bills, your salary and that gives the value in your business. If you come to sell your business, it will be your customers (current and future) that are going to support the value of your company.

Keep in touch with customers. Get out and see. Talking with them and listen. Discover a lot 'more about your business and you make your company stand out from the crowd. Keeping its promises and always deliver the best possible service can and will build a loyal customer base that will remain with you.

Of course there are many more mistakes that can be done but if you can avoid these 5 then you can much more of your business surviving and thriving.

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