Do you make these seven mistakes in your business?

By : |October 2, 2005 0



Mistake # 1: No Testing and
Measuring

Most of the business
owners don’t do any testing and measuring for any of the business activities
they do. Without testing and measuring, and, therefore, putting numbers to their
various activities, they don’t know where they are, let alone where they are
going. With the numbers, the business takes on a totally new meaning. They are
able to read the health of their business by the flow of numbers. They become
familiar with their business numbers, just as their doctor is familiar with
their blood pressure and pulse rate.

Mistake # 2: No Business Development
Program

Most of the business
owners are busy running their day-to-day operations. They either spend no time
or spend too little time in developing their business. And unless they spend
specific time, in a specific manner on developing their business, their business
does not grow. And if the business does not grow, it will eventually die. Or if
it does grow, they would not be able to handle the growth. Business development
program is a step-by step process, through which the business owner converts his
existing business—or the one he is about to create—into a perfectly
organized model.

Mistake # 3: No Unique Way of Doing
Business

If a business cannot
articulate clearly and concisely his or her company’s unique way of doing
business, they have a big problem on their hand. It means that it is a “me
too” rudderless business that feeds solely upon the momentum of the
marketplace. There is nothing unique, there is nothing distinct about them. They
promise no great value, benefit or service, they just shout, “buy from us”
for no justifiable reason. It is no surprise that most businesses merely get by.
They only get a small share of potential business. With no unique benefit, no
incredible price or selection, no special service or guarantee, why should
customers prefer a particular firm.

Mistake # 4: No Customer Knowledge

Do you know who are
your customers? Do you know why they buy from you? Unless you know the answer to
these two questions, you don’t know what you are doing. You are doing things
arbitrarily rather than scientifically. And if you are doing things arbitrarily,
you have no control over the results, which you will get. Big companies take
such things extremely seriously and spend huge amount of money and time to
collect this information and utilize the lessons to perfect their marketing
strategy. A small business is far more fragile than a big business. So if
anything, they must take this even more seriously than big businesses.

Mistake # 5: Not Implementing
Multiple Marketing Efforts

If your entire
marketing effort is dependent on just one or two marketing strategies, you are
skating on very thin ice. You need to develop a series of interconnected
sub-strategies; each connected and integrated to a single theme. By developing
and implementing, multiple marketing efforts, your company will progress on a
calculated basis.

Mistake # 6: Having No Systems in
Place

Do you have a selling
system? If you do not have a system, which is documented and in which everyone
who is involved in sales is trained into, you are leaving an unknown amount of
business on the table. Just following a system can produce a 100 percent to 500
percent increase in sales. Do you have an accounting system? Do you have a
purchase system? Do you have a schedule of repetitive tasks? Do you have a
training system for the people you employ?

If everybody is doing
various activities, through his own discretion, his own choice, and his own
method-do you know what you are getting? A huge level of inefficiency and
activities, which are completely person dependent. That person leaves the job
and you suddenly have a big problem on hand. In fact without a system, what you
are producing is chaos and not order. 

Mistake # 7: Not Hiring Effective,
Capable, Motivated Employees

Even if you need to
hire only one employee, you need to hire a capable employee. Employees should
not be hired just because they are known through some friends, or they are
related to you.

First, identify the
most important knowledge areas, skills and abilities the ideal candidate should
possess. Next, create the same specific questions that you will ask of all
candidates that will clearly demonstrate to you, that they have these critical
factors. Ask that person to demonstrate the skill, solve a problem, or write or
create something that clearly and concretely provide the proof you need to make
an informed decision.

Never hire even a
moderately qualified person just because you need someone. That rushed hire will
most likely become a problem later. So take your time and make sure you have the
best person possible for every position. You and your company will be pleased
with the results.

Finally…

So there you are.
Avoid these seven mistakes diligently, and you are on your way to a successful
business.

Arun Pujari is India’s first Action International Business
Coach-the world’s no. 1 business coaching team. He helps small to medium
sized businesses grow their business, increase their profits and make them more
effective and efficient through a variety of programs-one-to-one coaching,
training programs, workshops etc.

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