No one is perfect, right? This is just as true in running a small business as it is in everyday life. Avoiding all blunders would be great, and for most of us that is an end goal. There are, however, certain blunders that small business owners should strive to avoid at all costs.
The key to this is knowing what they are, recognizing them for what they are when presented, and having the wisdom to know how to avoid them. While most of this is only under the control of the business owner, these ideas could at least help in making owners aware of common blunders that are easy to miss.
Not Charging What Your Product or Service Is Worth
Making the sale is important, but charging what you or your product is actually worth is just as important. If you do not, you are devaluing your product to consumers, and this is a huge business blunder. It is better to charge what should be charged and offer incentive discounts in the form of sales, coupons, or loyalty points.
This will reward loyal customers, encourage potential customers to give it a try, and once they try it, if you truly are charging what should be, they will love it and buy it at full price. This will not always happen, but you will still make a better profit charging at worth than what you will lose undervaluing.
Hoping “One Thing Will Lead to Another”
This is never a guarantee, and more often than not the results are disappointing. What does this look like? It can take the form of overextended customer service, or pro bono work with no return, just as examples.
Of course, if you have a reason other than to grow your business for doing pro bono work or for offering excessive customer service, you are free to do that. However, if you are doing free work in an effort to gain paying business in the future, or offering customer service above and beyond what would reasonably be expected in hopes of some future profitable reward, you may or may not reap any benefit for the cost.
The chance that these activities will result in profit in the future is not big enough to justify the cost in time, and the loss of actual paying work that is not being done due to the focus on these activities.
Selling Out for the Profit
Of course the point of running a business is to make money, but at what cost? If you cut corners, withhold all customer service, nickel and dime customers for everything, or charge more than your product or service is worth, you are not going to maintain profit for long. Customer will catch on quickly, and things will go downhill from there.
Running a business is a balancing act. Walking the line between making the most profit and being the best in terms of quality is difficult, without question. Biz2Credit can take some of the stress off by helping you find the perfect lender when you need to find financing. Our network offers a broad range of small business financing options for various types of businesses and situation. Visit Biz2Credit.com today for more information.