Avoid These 3 Business-Killing Mistakes

Business ownership is the 21st century version of the American Dream. But of the millions of people taking the leap into entrepreneurship, about 50% of them will fail within five years.

That is a staggering number of casualties, and the ironic part is that not one person thinks they will be one of the many who fail. Even when they do fail, they will blame it on almost anything else but themselves. This doesn’t have to happen.

In working with thousands of small business owners worldwide, I will share with you a few of the classical errors we consistently see business owners make. Avoid these mistakes and you’ll share some of the big bucks.

Mistake #1: Not knowing exactly who your customer is.

This is what we refer to at OneCoach as your “Ideal Client Profile.” If you are thinking that anyone and everyone is your client, stop immediately and get real. For every product or service, there is a very specific personality that is just right for it. As a business owner, your job is to identify the characteristics of your perfect buyer and then craft all your marketing and sales efforts to meet their needs. Do not try to be everything to everybody.

Mistake #2: “The Vanilla Syndrome.”

What this means is that you must discover as soon as possible how to separate and differentiate yourself from your competition. It doesn’t matter if you are a lawyer, dentist, direct sales expert, or a dry cleaner. If you look and feel like everyone else, that is what your potential customers will think. Set aside some time and figure out if you are faster, cheaper, environmentally safer, more knowledgeable, etc., until you determine how you can be and feel different to potential and existing clients. Think about the reasons you choose companies’ products or services to use, and then create compelling reasons that appeal to your ideal customer.

Mistake #3: “Money Matters!”

It never ceases to amaze us how many small-business owners operate their business without having an understanding of their cash flow (or lack thereof). The days of running “by the seat of your pants” are over. It is imperative to know exactly how much is coming in, how much needs to go out for basic operation costs, and how much is needed to invest in the growth of your business. Each expenditure needs to have with it an anticipated return of investment (ROI). You must understand the financial details in your business or they will bite you in the bum before you know it!

Follow these three simple suggestions and you’ll shave a bunch of percentage points off your chances of being a negative statistic.