After 17 years spent helping thousands of small businesses, here are 6 of the most common errors I’ve seen.
Negative association. There is an undeniable link between how successful you will be, and the people you habitually associate with. Mix with pessimists and those lacking direction and one day, everything they have will be yours!- Starting without the commitment to finish. Many small business owners are wonderful at starting projects, but less good at finishing them. If you have an idea and you think enough of it to get started, at least give it the effort it needs in order to fly or flop. Don’t quit at the first hurdle.
- Applying an employee mindset to the development of their business. When a business owner has an employee mindset, rather than the mindset of an entrepreneur, their focus is on avoiding loss, rather than attracting success. They starve their business of the resources it desperately needs, like expert help, seeing it as too risky. They choose to ‘save money’ and do everything themselves, then slowly go broke.
- Opting for ease over effort. Sometimes the easy route is the right route. Sometimes it isn’t. When a business owner looks for the easy way, rather than the correct way, they will miss opportunities and make some very costly errors.
- Pestering people. People hate being pestered or pursued. Attract the help and business leads you need, don’t try and annoy your way to success. If you don’t know how, find someone who does and watch what happens to your results. You will also be amazed how much more fun the business of business is, when people come to YOU. If you are not one of the people in point number 3, I can help you.
- Selling based on fees or prices. If your marketing is based around being cheap, you will lose. Your profits will be low and you will attract the lowest value clients. Just as importantly, thanks to Google, I can find 10 people doing whatever you do, for less, in just a few minutes. Get out of the race to the bottom. Pump more value into what you do, rather than just lowering the price or fee. Then, think about joining the race to the top. Here is a series of 3 posts, to show you how to work for the best clients and highest fees.
The failure of a business or any enterprise, is seldom the result of a single, cataclysmic event. It’s almost always the result of small errors in judgement, repeated regularly. If you identify any of those 6 points in your own business development, get to work on them.
I’d be interested to know what you would add to that list and why?
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I love #6 – When writing ads for my clients, I always try to discourage the “race to zero” for the exact reason you mention. In addition, when you become all about price, you NEVER retain a client for longer than it takes to sell them that one single low-price thing. That is unless you charge even LESS next time around.
If rate is all you’ve got to go on, find something else that sets you apart, or you’ll be in it up to here.
Rock on, Jim.
Hi Brett. Yes, it’s about pumping in value and thinking longer term. Thanks for the feedback.
I’m thinking #1 is #1 for a reason.
Mix with pessimists and those lacking direction and one day, everything they have will be yours!
That’s just good honest life advice there. Applies to just about every group interactivity.
Always remember that you rise to the level of your competition and sink to the level of your compatriots.
Thanks Kevin.
The power of association is often underrated. Many people seem oblivious as to the impact their associates are having on them.
As you say, this is reflected in every area of life and not only business.
Jim,
The other thing I’d add to this is a willingness to experiment. I’ve seen many people who are great at coming up with ideas but don’t do anything with those ideas. Or they’ll analyze an idea to the point of killing it. We often won’t know until we actually try.
Hi there Srinivas. You make an excellent point about the problems with over analysing.
We can think our way out of a great idea, if we’re not careful.
Hi Jim, great post, great points, great … message.
The first point about association could be underneath to the point of the employee mindset.
It’s clear that making the step to be associated with someone increase the ‘anticlockwise’.
Thinking as an entrepreneur, is first, being authentic, having the will to create aesthetic expertises, and that, what creates the long term view and increase your inner value.
You’ve made a great summary of common situations we are all meeting at some points.
My personal experience told me to follow them, and thanks again for sharing your experience.
I would add that the object of being in business in the first place is first to make a profit. But secondly, and most importantly to bring value or benefits to the customer that has chosen your product to solve a problem that s/he has. Without satisfied customers the best business is NO business.
Thirdly, make your workers owners, you’ll thank them later for seeing your foresight. Part owners make great employees, because the want you to succeed so that they can too.
Business that gone into a price war is tedious and stressful. It means the product is a commodity. The business owner has no control over the price of commodity. The market forces will be too huge for any owner to set a price.
Business innovation is always in the process to avoid being fall under a commodity category.
HI Jim. This line really resonated with me “their focus is on avoiding loss, rather than attracting success” In the beginning (where I am), I tend to wonder how much more money it will take until I see results, but this has helped to shift it as not just necessary steps, but simply steps on the way to success.
To your list, I would add “Bragging rather than letting your actions speak for themselves”. I really don’t trust those that tell me how great they are, but rather really like to see them sit back and let their success shine as the proof in the pudding.
Thanks