We often see a lot of small business and startups fail right at the beginning, even before they firmly plant their foot in the industry. The sad part is that, almost all these businesses have great products and customer service. But, what mistakes do small businesses, such as group homes, home care, adult day program, and supported employment agencies make,that lead to their downfall?
Here are 7 of the most major and common mistakes that must be avoided by all personal care business owners:
- NOT FINDING THE MONEY FIRST:
All too often,the potential provider takes-off aggressively at the beginning of their business, buying office space, or even a home.They fail to look into the most important thing, which is locating where they will get placements, or clients, from early-on. Securing a contract, or initiating the contractual process, is so key to ongoing success. Not to mention, identifying more than one revenue stream, before you start acquiring leases, titles, or deeds to properties.
- NOT HIRING SOON ENOUGH:
You cannot do everything by yourself. Period. Most new business owners don’t understand that every single individual has limited time and energy. Your primary job must be to supervise over your company, and watch it grow, with a bird’s-eye-view.
It is best to start hiring at the very beginning, to upscale your productivity. You can even outsource jobs, if you want to save on capital in the first few months. But, refrain from doing everything by yourself.
- UNDERMINING ONLINE MARKETING:
This is the era of online marketing. Instagram, Facebook, and Twitter are the new marketers, to drawing customers and clients to your business. Make sure you, at least, have a website, wherein people can purchase directly from the online store.
It is also important to make use of the latest technical software, like apps in order to make your business a popular household name. Remember to provide a link to your contact details and website address at every site you market your store in.
- TAKING CUSTOMERS FOR GRANTED:
Your business will only run, if customers are happy with your product, or service. Then, they would want to be your customer for long. Satisfied customers will also fetch you valuable referrals.
However, once you start taking these customers for granted, and your service hits a low, chances are they will prefer buying elsewhere than from you.
- RELYING ONLY ON CERTAIN CUSTOMERS:
Keep looking for newer and better customers, while always keeping your current ones happy and updated. Relying only on certain customers will result in a stunted growth for your business. You may also find yourself at a dead end if such customers stop buying from you.
- GIVING-IN TOO MUCH TO CUSTOMER DEMANDS:
In other words, not valuing your product or service enough. You must be willing to walk away from clients and customers who drain you mentally and physically. Instead, be on the constant hunt for people who will not just benefit from your offers, but also look forward to it.
- INCORRECT MANAGEMENT OF CASH FLOW:
Unless you’re generating money from your business module, you will have a negative cash flow. Most new businesses seldom pay attention to post cash flow, resulting in net loss, and the business shutting down, thereafter.
So, if you're planning on starting a new business, and have already designed a plan and strategy accordingly, refrain from making the above-mentioned 7 mistakes. These are the root causes for most startups and small businesses perishing before they even come to be known of.