In my professional experience as a sales and marketing
coach/consultant, I've had the opportunity to work with a number of
small business owners on various issues related to sales and
marketing. The owners who are struggling to keep their businesses
afloat tend to engage in some, or all, of the following mistakes that
reduce profitability.
Mistake #1: They fail to market or market inconsistently. Once you
have committed to owning and running a business you must be equally
committed to marketing and selling the products and services of that
business. It is difficult, if not impossible, to stay and remain
profitable without a commitment to ongoing concerted marketing.
Solution: Market all the time, every time.
Mistake #2: They hesitate to "ask for the sale". Rather than seeming
pushy or obnoxious they let profit-producing opportunities pass them
by. They worry more about what someone thinks of them than they do
about bringing more money into their business. If you find it
difficult to "ask for the sale", you can be sure that you're not
bringing in as much money as you could be.
Solution: Practice asking for the sale.
Mistake #3: They don't ask for help or assistance in the aspects of
the business where they most need it. Most business owners possess
strengths in a particular area but whether by necessity or ignorance
they often end up working in areas that aren't part of their
strengths. When business is not going as it should they delay or
procrastinate in asking for help. Each day that goes by with your
business running at less than maximum efficiency means dollars lost
from your pocket.
Solution: Get expert advice from an attorney, accountant, or other
service professional before you really need it.
Mistake #4: They don't follow up with past customers. It is usually
much easier to reactivate a former customer than it is to attract a
new one. If you are not following up with past customers on a regular
basis you are reducing your profitability potential.
Solution: Develop and implement a regular method for customer follow
up.
Mistake #5: They don't take regular stock of their expenses. Savvy
business owners regularly appraise their business expenses and find
ways to reduce costs without sacrificing quality. If you haven't
completed a cost analysis lately, you might be paying more than you
need to be, which will reduce your profitability.
Solution: At least once per quarter review expenses and negotiate for
adjustments as appropriate.
Mistake #6: They spend large amounts on glossy, slick marketing
materials and expect business to pour in without any additional
effort. Glossy brochures and slick marketing materials are a nice
addition to more active forms of marketing such as meeting people,
calling people and speaking to people. Brochures and business cards,
no matter how beautiful, do not replace direct contact. If you are
spending money on flashy marketing materials rather than marketing
directly you will be less profitable than you could be.
Solution: Take those glossy brochures and hand them out directly to
people at the next possible opportunity.
Mistake #7: They spend a significant amount of time in low-return
activities (as measured by dollars and personal satisfaction). If you
are spending the majority of your day completing tasks which are
administrative in nature and/or which can be easily completed by
other people you are reducing your profitability.
Solution: Track your time and figure out how much you're making per
hour. Hire an assistant if you are spending the bulk of your time in
administrative work.
Mistake #8: They charge less than they desire. This challenge seems
to arise especially for consultants, coaches and solo entrepreneurs
who sell services. It is often tempting to accept less money than you
need - so you get "some money" rather than "no money". After time,
working for too little can leave you exhausted and resentful and it
takes a deep cut out of your profitability.
Solution: Commit that, at the next opportunity, you will ask for full
fee. And then do it.
Mistake #9: They make infrequent or no use of technology which could
save them time and effort. As a business owner, you have a fixed
amount of time and energy within which you must maximize your
profits. Technology can help you do this in the form of
autoresponders, voicemail, wireless internet connections, speech
recognition software and the like. All of these tools are designed
to save you time and effort. If you are not making consistent use of
technology in your business you are likely not as profitable as you
could be.
Solution: Look for ways that you can make your business processes
more efficient by using inexpensive technology.
Mistake #10: They adhere to outdated business models or plans. If you
do not stay up with the trends in your business you will notice a
steady decline in your profitability.
Solution: Attend meetings and conferences that will keep you on
target with your market. Implement new means of doing business and
update your business plan at least every couple of years.
If you are serious about improving your business' profitability,
start by implementing the suggested solutions to these ten common
mistakes. Together, these solutions will help you make more money
and have more fun in your business. Try them and see.
(c) 2004 Dr. Rachna D. Jain. All rights in all media reserved.
Dr. Rachna D. Jain is a sales and marketing coach, author, consultant
and speaker. Sign up for her free email newsletter, "Sales &
Marketing Secrets" sams-subscribe@salesandmarketingcoach.com
To learn more or to contact Dr. Jain directly, please visit
http://www.SalesandMarketingCoach.com
