Like the general saying, it is easier to fail in business than to succeed. This means that small business owners should also look out for habit or actions that affects their business growth. There are so many reasons why many small business are not growing as expected. However, we are discussing six key business owner habits that affects business growth. They are habits every business manager should avoid.
1. Not Dressing for the type of business
Okay, it may sound funny, but why do you think bankers dresses smart? It create a more professional atmosphere around their offices. Smart dressing also create a positive customer perception. The true dress code depends on the type of business you are doing, however you have to wear the right dress code at the right time.
2. Feels Shy to Talk about Your business
You want to sell bread and butter but you feel shy to tell people that you are a bread vendor. Honestly, that business will not work under your leadership. Your business cannot succeed if you feel shame or shy to tell people what you offers. I am an accountant and a part-time writer and I will never hesitate to share my work with anyone. Why should you feel shy to sell your products, negotiate price with supplier or customer?
Feeling shy to talk about your business could be a sign 3 of things: 1. Lack of confidence about your ability or ideas to do that business. 2. You do not have passion and commitment about the business. 3. You are doing something illegal or immoral business activity which you cannot feel proud.
Business is all about branding and selling, that is why tailoring shops have been branded to fashion homes or shops.
3. Believing that Money is everything in Business
If you read the story of many world most successful entrepreneurs such as Bill Gates of Microsoft or Steve Jobs of Apples, you will found out that they started businesses in other to fulfill an unmet need. They are people who want change and started business to make that change. They focus on the customers, whose need they wanted to fulfil.
Sales and profit will come when the customers are satisfied.
4. Diversion of business funds to Personal use
Diversion of funds from business to personal use can slowly kill your small business. Personal expenses and funds should be separated from that of the business accounts. Fund diversion can unintentionally happen when the business and personal monies are saved in one account. Whatever may be your reason, if you take too much cash from the business, it will undergo liquidity challenges. Of course, it will be very difficult to get business loan when your bankers know that you practice business fund diversion.
5. Doing everything by yourself
Many small business owners make a mistake of doing everything by themselves. This type of operation does impact your productivity. You need to delegate some works to your staff and you focus on the important activities such as customer relationship management or strategy. For delegation to work, you need to trust yourself and surround yourself with staff you trust. Train your staff how to do non critical jobs such taking orders, updating records etc.
6. Heavy Capital Expenditure for Business Growth
Major capital expenditure should always be manage in term of amount and timing to ensure the business operations are not affected. This is even more serious if such expenditure are for the personal use of the owner. If you plan to make material capital expenses, it is important you carefully plan the sources of the cash. Your business growth is largely influence by sales and cash flow.
If capital expenses are funded by borrowing, the repayment of debt should be aligned to the expected cash flow from the asset. For example it is not financially wise to use an overdraft as the majpr source of funding for a capital expenditure. This is because the capital asset may not generate enough cash flow to repay the short term overdraft on time.
Well, these are few habits that affects small business growth. Please share own view on the comment box.