Mistakes Small Business Owners Make That Cost Them Money
1. They push a client into making a quick sale now instead of building a long-term, mutually profitable relationship.
2. They do not complete weekly/monthly/yearly Profit and Loss Statements, so they oftentimes do not know what they are making and where their expenditures are.
3. They vastly underestimate their actual costs, especially with regards to implicit costs, those owner-supplied resources (i.e. time, tools, space, car usage) that should be considered in a business development plan.
4. They are blind about their own product in the same way that parents believe that their children are the most beautiful on the planet. As a result, they fall into such love with their product or service that they don’t update it, innovate or keep up with competitors.
5. They don’t plan for emergencies, contingencies, or failures, such as when you pay a supplier and they don’t deliver or go bankrupt and your money is lost.
6. They think they have to do it all themselves, and as a result, there is no way they can grow beyond the capacity of their own working