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10 big things small business get wrong


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Old 07-20-2006, 04:11 PM
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10 big things small business get wrong - 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?
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