Congratulations on starting your small business as you may have noticed especially running solo there many issues that need to be taken care of such as stock keeping, sales recording, debt management not forgetting suppliers and expenses to be paid. All this and you need to be able to take care of your customers feels stressing and it gets frustrating when you don’t know how to handle the pressure.
Do you relate with this? If so, then you are in good company. First and foremost you are not alone and we are writing this to help you on the things to avoid while running a small business.
1. Poor Cash management
As as small business there is a tendency to neglect proper cash management principles. Where business expenses and personal expenses are mixed up. This should be avoided to be able to have a clear record of how your business expenses tracked in a simple and fast way.
Noted down and keep proper records for example the sales made, expenses incurred, inventory and customer debts among others each time they take place or at the end of the day. Doing so informs you what you need to act on saving you time and money inline with your goals.
Here is an article to get you started on how to track your small business expenses.
2. Neglecting or underserving your customers
It should probably go without saying, but your business needs paying customers to be sustainable. These are the group of people buying your product or service regularly. When you are a small business you have to find a way to talk to your customers, understand their problem, walk in their shoes to be able to serve them better.
Don’t be ashamed in asking for feedback and ensure you act on it. Know the products they like/dislike and adjust your inventory accordingly.
3. Not Learning How to Fail
From the book “Fail Fast, Fail Often: How Losing Can Help You Win” by Ryan Babineaux, John Krumboltz . They explain the difference between knowing how to quit when it’s obvious to do so, knowing when to pivot/ change course and when to persist a little longer.
When you realize that things are not working in your small businesses instead of ignoring them you need to act accordingly whether to close the business completely, change to another business or stay put. A series of small fails that you can quickly learn from is better than one giant fail.
4. Setting the wrong price
While running your business you need to avoid the mistake of setting your prices based solely on what your competition charges. It’s important to research your costs in detail for each of your products when deciding what to charge. Also, monitor actual costs as you go to make any needed adjustments. Under pricing won’t work, but decent prices for your product or services work should always be your aim.
5. Ignoring technology
As a small business you cannot afford to ignore use of technology in your business. Especially now that also your customers are leveraging use of technology from social media marketing, ordering online, mobile payments ,delivery services among others.
You can begin with simple mobile based tools that are free or budget friendly to digitize your income and expenses, inventory and customer management such as Biashara Book in less than 10 minutes.
Embracing technology for your business results with improved growth, efficiency and profitability.
6. Avoiding asking for help
Running a business is involving and it comes with its own share of challenges. As solo entrepreneur it’s okay to admit you need help nobody has it all figured out. Don’t be shy about seeking advice from those experienced entrepreneurs in your circle, hiring or outsourcing expertise services and advice from your local community of small businesses owners.
It may cost you money but it’s the price to pay for your business especially if you want it to grow and be profitable.
Feel free to add your input on the comment section let’s build African business better.
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