How to Ruin Your Small Business

How to Ruin Your Small Business

You can ruin a business in many ways. Some ways to ruin a business seem easy and obvious. Other ways to ruin a business make it seem like someone went out of their way to think of a way to do it. Businesses are often started to live out the American dream. Very few owners ever have the intention of ruining their small business. The good news is that you can minimize the likelihood of your small business failing. Protect yourself by reading this article and putting the warnings into practice.

Failing to Put Policies in Place (and Use Them!)

Policies provide boundaries for you, your staff, your business, and your clients. You must put different policies in place to give you and your clients clear expectations. Without policies, a client may try to walk all over you or your staff may provide preferential treatment instead of treating all clients the same.

Be sure to use your policies. If your policies state that you have office hours between 9-5 every day, do it. If your policy states that you don't give new clients credit without running a credit check, run a credit check for every single client. Put your policies into action for all clients to show that not only do you honor what you say, but also that you don't show favoritism between clients.

Providing Credit to All Clients

Providing credit is an important decision all business owners must make. If you've been considering this decision and you are leaning toward offering credit, keep the following advice in mind. It's advisable not offer credit to all your clients. This can cause trouble for you and your business. Giving every clients credit can cause some of your clients to take advantage of it and try to avoid payment. Non-payment can ruin your business. It’s advisable to only offer credit to those who are established in paying you. Questions about setting up a credit policy? We have a series for that!

Too Much Thinking, Not Enough Action

You spend much of your time planning. However, what good is planning if you don't act? You can't keep planning and expect your business goals to magically achieve themselves. You must follow the path to achievement, not the path to failure. You must take action to get results.

Not Listening to Clients

Your clients pay you for your services. If you don't offer what they want and need, you'll lose clients. Listen to your clients. Conduct surveys to find out what exactly they need. When you do this, you can find out what your clients need and extend these services to them.

Giving into FOMO

FOMO, or fear of missing out, is a real thing. It also goes by the name Shiny Object Syndrome. FOMO happens when you don't want to be left behind by current trends, so you hop on the next newest thing. One reason this can happen to you is you think these trends can bring in more clients and cash. Most, often, however, it brings you stress and fatigue from having to keep up with everything new. Stick with a few ideas and don’t let FOMO attack you.

Not Setting Up a Contract with Your Clients

You should always set up a written contract when you get a new client. Working without contracts can set you up for trouble. A client may refuse to pay you or change the project. Always set a contract to protect you from trouble.

Not Setting Up an Online Presence

The Internet can be a source for potential clients to find your business. Don't ignore it. Set up a website at the very least. Using social media can bring more clients to your door as well. Establishing an online presence unlocks a treasure trove of potential.

Not Being Open to Outsourcing Work Remotely

When your business grows, you may need to hire someone. If you live in a small town, you may not have the talent or skill you need to hire out. Don't overwhelm yourself by maintaining a one-man (or woman!) show. Consider outsourcing. It can take the extra off your plate so you can grow your business.

Need Outsourcing Help?

If you need outsourcing help, contact Clients ARM for your free, no obligation consultation! Clients ARM has over 30 years of experience in providing services such as accounts receivable, customer service, billing, medical coding, and more. Contact us today for your consultation! You'll be glad you did.