Are You Guilty of Any of These 5 Bad Habits That Can Break Your Business?
Before you start a business, there are innumerable things to think about. Your business plan, whether to start your enterprise as a side business first before quitting your "day job." But once you take the plunge, don't let these bad habits become your undoing.
Bad Habit #1: Playing Fast and Loose With Your Accounting
Yes, you may have written a business plan with financial projections. But are you keeping good books?
Don't fall victim to the classic trap of many first-time entrepreneurs who play fast and loose with their accounting. Establish a balance sheet. A balance sheet is a snapshot of the financial overview of your business. Include:
Bad Habit #2: Not Cultivating a Niche
Entrepreneur Guy Kawasaki explains that you must endeavor to create something that is both of high value to customers and that few others are doing. Imagine four quadrants that represent a matrix of value and uniqueness:
More tips from Guy here.
Bad Habit #3: Not Keeping in Touch With Your Customers
Email -- if you're not doing it, you should. There are few other tactics for acquiring and converting customers that are so effective and cost-conscious. But if you've never done email previously, the options might seem daunting. In this three-part series, we'll look at the basics of email (including key terminology), how to setup and manage your first email campaign, and how to grow a list through great content.
Bad Habit #4: Forgetting About Your Existing Customers
Prospecting can be both exciting and all-consuming. But remember that it costs much less to retain an existing customer with promotions, attention and service than it does to win a new customer.
So keep it fresh: Find ways to freshen up how you deliver your services. Seasonal changes to decor (even website decor), a new way to answer the phone, a different tagline in an email -- anything to get their attention.
Bad Habit #5: Not Taking Advantage of Social Media
Twitter, LinkedIn, Facebook, Google+ and now Pinterest -- the number of social networking sites clamoring for our attention can seek overwhelming. But if you're in business, you need to use social networks to gain attention and customers. Why? The first reason is simple: they are a powerful free way to win influence for your business. But in a much larger way, social networks are transforming the way customers interact with brands. Master that shift and your business will profit. Here are some ideas on using social media marketing to find customers quickly and inexpensively.
Bad Habit #1: Playing Fast and Loose With Your Accounting
Yes, you may have written a business plan with financial projections. But are you keeping good books?
Don't fall victim to the classic trap of many first-time entrepreneurs who play fast and loose with their accounting. Establish a balance sheet. A balance sheet is a snapshot of the financial overview of your business. Include:
- Current Assets: What cash do you have on hand (including personal savings), inventory of product, money owed and accounts receivable, as well as fixed assets.
- Liabilities: what money do you owe? This could be salary and wages, accounts payable, and taxes owed.
Bad Habit #2: Not Cultivating a Niche
Entrepreneur Guy Kawasaki explains that you must endeavor to create something that is both of high value to customers and that few others are doing. Imagine four quadrants that represent a matrix of value and uniqueness:
- High value, low uniqueness - You compete on price.
- Low value, high uniqueness - This is what Kawasaki refers to as the "stupid" quadrant. It doesn't matter if you have no competition if no one wants to buy your product.
- Low value, low uniqueness - The "dotcom" quadrant. At one point, someone said, "We're going to change how people buy dog food. We're going to sell it online. We'll cut out the middleman and people will be able to buy it cheaper." But they forgot one thing: dog food is heavy. The money saved was offset by high shipping costs. The crazy thing is not that a company didn't realize this, but that at one point, 16 companies were selling dog food online. Of course, most of them are no longer in business - no great surprise.
- High value, high uniqueness - This is where you make money, margins and meaning.
More tips from Guy here.
Bad Habit #3: Not Keeping in Touch With Your Customers
Email -- if you're not doing it, you should. There are few other tactics for acquiring and converting customers that are so effective and cost-conscious. But if you've never done email previously, the options might seem daunting. In this three-part series, we'll look at the basics of email (including key terminology), how to setup and manage your first email campaign, and how to grow a list through great content.
Bad Habit #4: Forgetting About Your Existing Customers
Prospecting can be both exciting and all-consuming. But remember that it costs much less to retain an existing customer with promotions, attention and service than it does to win a new customer.
So keep it fresh: Find ways to freshen up how you deliver your services. Seasonal changes to decor (even website decor), a new way to answer the phone, a different tagline in an email -- anything to get their attention.
Bad Habit #5: Not Taking Advantage of Social Media
Twitter, LinkedIn, Facebook, Google+ and now Pinterest -- the number of social networking sites clamoring for our attention can seek overwhelming. But if you're in business, you need to use social networks to gain attention and customers. Why? The first reason is simple: they are a powerful free way to win influence for your business. But in a much larger way, social networks are transforming the way customers interact with brands. Master that shift and your business will profit. Here are some ideas on using social media marketing to find customers quickly and inexpensively.
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