11 Common Pitfalls and How to Avoid Them

Ashton is a business author and entrepreneur. He meets many people who have ‘hit the wall’ with their business and shares here his top 11 business pitfalls, plus his tips if you want to avoid them!

DON'T OVER PREPARE - It may be tempting to wait until the letterheads are printed, the pencils are sharpened and your files are colour coordinated but really, you don’t have to get it perfect – you just have to get it going! Get out there & make some sales – until then nothing will happen.
CHOOSE PARTNERS CAREFULLY - Friends, relations and marriage partners don’t often make the best business partners. If the business goes wrong, you’ll need a friend to talk to. If your relationship goes wrong you may lose your business as well as everything else. Keeping your private life and personal life separate gives you more balance and more chances of success.
DON'T BE TOO CHEAP - This is the most common mistake made by new business owners and reflects a lack of confidence. Price is largely a matter of perception and most customers think that cheap equals low value. Value your time and your expertise according to the value it has for your customers. Use discounts sparingly & only to get more business.
GET PAID - When someone owes you money you don’t have to stick to the rules to get paid. Make friends with the person who prepares the cheques for signing & get yours in the pile. Offer to discount bills for quick payment. If you get stuck with a bad debt, call on your debtor at home. Use emotional blackmail – after all it is your money!
DON'T OVERSPEND - The full colour laser printer/tap dancing coffeemaker/flash car/posh PA are all luxuries that can wait. Rent rather than buy and economise on everything except customer service until your cash flow is rock solid and you’ve got a cushion against a downturn or bad debt.
ENJOY SELLING - There are so many distractions that can stop you from picking up the phone and making sales calls. The VAT return and accounts can wait or be done by someone else. Without sales you have no business so make sure this activity is always the priority and learn how to do it well and how to enjoy it.
KEEP LISTENING - Your customers are the best barometer of your business. Listen to what they want, what they like & what they don’t like. Keep asking “How’re we doing?” and act on the answers.
DON'T GROW TOO QUICKLY - Don’t be seduced into trying to build an empire if what you want is a lifestyle business. Get your values sorted before you start and if you are working for independence, financial freedom and to spend more time with your family, don’t swap a demanding boss for a demanding business.
AVOID CARELESS TALK - There are vultures out there ready to pounce on a business in trouble or to steal ideas and undercut deals. Keep your own counsel and know who your friends are.
ADVERTISE WITH CARE - Advertisers are after only one thing – your money! Most advertising is unproductive unless you have millions to spend on huge campaigns. Small businesses get more business from satisfied customers so do a good job & make a habit of asking for referrals and testimonials.
ALWAYS UNDER PROMISE AND OVER DELIVER! - Quote a deadline that you know you can beat. Add a little extra. Give more than expected. Don’t just deliver – delight and be remembered!

Read more of Robert’s articles and buy his books at www.robertashton.co.uk