Steve
07-20-2006, 04:11 PM
10 big things small business get wrong (http://businessnetwork.smh.com.au/articles/2006/07/20/5321.html) - Is your business guilty of any of these?
1 Not enough planning
2 Inadequate start-up capital
3 Confusing profit in the profit and loss statement with cash in the bank
4 Neglecting statutory obligations
5 Poor cash-flow management
6 Bad systems documentation
7 Going after the wrong sale
8 Poor debtor management
9 Not controlling the cost of finance
10 Overstocking
Now this is from an australian paper so it may differ just a bit from the U.S.
One of the things I thought that stood out which isn't talked about enough is #7.
7 Going after the wrong sale
Hartcher points out that a lot of businesses will chase any sale, but it's more important to know what sales to chase.
"Sometimes, getting a sale can be bad for your business. You might discount too much or it might cost too much time to get the sale," she says.
She advises that a good understanding of your margins - what you need to make a profit - helps a business target the right sales. "Never rely too heavily on one customer," she adds.
How true is this? Have you ever found yourself confroting these issues?
1 Not enough planning
2 Inadequate start-up capital
3 Confusing profit in the profit and loss statement with cash in the bank
4 Neglecting statutory obligations
5 Poor cash-flow management
6 Bad systems documentation
7 Going after the wrong sale
8 Poor debtor management
9 Not controlling the cost of finance
10 Overstocking
Now this is from an australian paper so it may differ just a bit from the U.S.
One of the things I thought that stood out which isn't talked about enough is #7.
7 Going after the wrong sale
Hartcher points out that a lot of businesses will chase any sale, but it's more important to know what sales to chase.
"Sometimes, getting a sale can be bad for your business. You might discount too much or it might cost too much time to get the sale," she says.
She advises that a good understanding of your margins - what you need to make a profit - helps a business target the right sales. "Never rely too heavily on one customer," she adds.
How true is this? Have you ever found yourself confroting these issues?