Losing Your Biz! The Top Pitfalls All Business Owners Can Face

January 29, 2018 5:47 pm

Running your own business can seriously be the stuff of dreams for some. It gives you the perfect opportunity to strike the right balance between home life and working life. People tend to struggle in jobs where they work long hours and don’t see their family. It can certainly help you to put your priorities in order and put things into perspective. Especially if you find that you can do some of the things you do for someone else right now just as good if not better for yourself. In most cases, doing this earns you more money as well. However, some people have an idea, they spot a niche in the market and they go for it.

Getting that brainwave moment to start a new business, be that something new to you or just working for yourself in skills and industries you know very well, can be an extremely daunting process to find yourself in. You may wonder how to actually take that leap of faith, how to to just start doing it, not to mention losing the security of a monthly wage and employment benefits that can go alongside being employed. But once you do, you will often find yourself looking back on that very beginning and thinking why you didn’t start sooner. However, it isn’t always plain sailing. There will be times when running your own business can be extremely tough, where you might be wondering about your profits and whether or not your business will even make any money. There will be moments where you feel scared, moments where you feel elated. It is just part and parcel of running a business. But, there are times where all business owners can face some of the common pitfalls of running a business. I thought I would share with you what some of them are, hopefully helping you to guide away from them if you find yourself struggling.

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Spending too much time on the planning

One of the biggest issues new business owners can face is prioritising and focusing their time on things that they think matters, but actually don’t bring in the business or make you the money. I am talking about planning. Let’s get one thing clear, every business needs a plan and direction to take it forward. But people can get overly obsessed with the planning elements and spend far too much time planning how they are going to do something, instead of actually doing it themselves. It can also be a form of avoidance, why you feel like you are planning to make some changes, a successful business also needs someone to actually take those actions and put them into practice.

Not embracing the digital world

There is no hiding from the fact that thing are going digital. The internet has boomed in the last fifteen years, so much so, that some people don’t quite no how they managed life before it. Ordering shopping online, be that food or clothing, is becoming a thing of the present. Talking to people online, sharing our lives online through social media, these are all things that are becoming part of our daily lives. Not embracing the digital world with your business could potentially be your biggest mistake. If anything, having a website and a social media platform is just part and parcel of a business model these days.

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Struggling with cash flow problems

Cash is king, we hear that all the time, but many business owners can struggle with cash flow and this can be one of the biggest pitfalls of their business model. You need to be able to keep your company going, so having things invoiced out and not paid for can be a huge problem. As well as managing your own invoices that have been presented to you. Most of which have payment windows, and you might offer them yourself. Preparing for the eventuality that someone will take advantage of that window, much like you would can help you to better prepare for any cash flow issues. This is when alternative business loans could step in to help your business continue to grow. Enabling you to expand and consider business ventures, even when you don’t necessarily have the cash behind you.

Trying to have your fingers in all pies

Are you one of those business owners that tries to do everything? Often, while you feel you have complete control over it all, you end up spreading yourself too thinly which means that some areas of your business could begin to struggle. It is important for you to consider your options and analyze exactly where your strengths and skills lie best. Focus on those areas an outsource other aspects of your business. Marketing, accounting, it could help you to really focus the time you do have and grow your business further.

Not having a clear direction

I may have mentioned early that over planning could be a big downfall for you, however, not having any direction at allcan be just as bad. You need to have a clear vision for where you want your business to be in twelve month, stwo years, five years and so on. A business plan is a great way for you to focus your direction. But once you know it, don’t over plan it.

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Being open to expansion

A big downfall for business is to not be open to expansion. It could be a huge issue if you are just happy sailing on through at the level you are at now, as your business won’t do anything more. Expansion could be a new product or service. It could be a retail store or branching out of your home office. The options are endless, but it could work in your favour if you are open to the possibilities of what expanding your company could do for you.

The wrong brand or logo

Your brand identity is important, so it is ideal to spend time on this aspect of your business. After all, this is where your business gets to make its first impression. It needs to be memorable, not overly complex but informative. Designing your own could be a big mistake, so it may be worth investing in a digital agency to bring your vision to life. You can then adapt it for packaging, for your website and your social media platforms.

Not taking advantage of other routes to market

You may have had a clear idea on how you planned to market your product. Perhaps you are big on the digital front and accept that the internet could really help diversify your routes to market. However, not embracing other methods or thinking outside of the box will find you in a sea of other internet based business with no room for scope. Think about your local area, thing about different ways to advertise. Before the internet, what did businesses do?

Forgetting to recognise industry trends

Finally, you can be so overly focused on your business that you can forget to look out for industry trends that could help your business thrive. But on the other hand, it could also make your business suffer. Knowing what is going on in the industry your business falls in, and looking out for different ways to market your business are key factors to staying one step ahead.

I hope that highlighting some of the top business pitfalls could help you recognise some areas that you could work on within your new business model and for the future.

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