After doing couple of food videos it is back to business .When i had my own Pastry shop and restaurant i was relatively new to the business world and made lots of wrong decisions and i paid the price.Since then i went through many learning experiences in business – Still learning – doing consulting and researching.
Though there are many mistakes business owners tend to make , i would like to point out 6 most common mistakes which i think is of most important( The list can get really longer…..).The opinions expressed are my own from my observation.
1. Not taking care of your staff
When the pandemic hit us in March everything came to a standstill and Businesses were closed. Since there were no sales business owners were staring at a huge loss. Though the plight of the business owners can’t be ignored, many were abandoning their staff, not attending their calls and not even answering their messages. I myself went through this ordeal.
Now this kind of approach towards your staff will result in them loosing trust in you and eventually it will reflect in their work. The reason you offer your customers the service you offer is because of the hard work put in by your staff apart from your investment. You can’t run a business without them.
So what should you do? You might ask. Well! the word is EMPATHY. Even during trying times instead of avoiding them, if you speak to them openly and make them understand, there is a high chance that they will support you however they can. It may not be easy but possible. It is only when they trust you they will give their best at what they do.
2. Getting Complacent
When your business is doing well, if you start taking things for granted, you will lose focus of future challenges. By the time you realize that you have not adapted to changing times, your business will be facing death. There are many examples in the business world to look at and learn from. A good entrepreneur always keeps a look out for disruptions in the market and keeps his business ready to face them.
3. Not keeping a tab on expenses
Honestly you are in business to make money hence it is important to have control and understanding on spending. There are some areas of the business where spending is a must and in few areas it is optional.
You can save cost by,
- Buying in bulk as much as possible.
- . Avoiding unnecessary meetings and travels.
- By understanding your customers better through research and data, you can avoid spending on things that don’t generate revenue.
- Practice what you preach and be an example to your staff.
- Improve negotiating skills with all parties concerned to get better deals.
- Do cost effective and innovative marketing.
- Invest in a good software to track your expenses/revenue.
Though the list can get much longer the above are few examples to keep in mind to increase profit. You can also invest in getting expert’s help to setup an efficient work flow in your business.
4. Not paying heed to customer feedback
Customers are the reason you stay in business and make profit. Many times I have personally been a victim of bad customer service and I have never returned to most of those places and I am sure many of you would have done the same. Just because you have a hit product doesn’t give you the right to take the customer for granted. Problem with bad customer service and ignoring their feedback is, they won’t tell about your business to other people and if they do talk about it they will give a negative feedback.
It is ok if you want to run a mediocre business for the rest of your life but if you want to run a successful one pay heed to customers feedback and adapt.
5. Not complying with government norms
There are couple of licenses you need to obtain and implement mandatory sop in your business as per the rules and regulations laid out by the government agencies. They are in place for a reason and I suggest you get them and implement the standards.
It is better to comply with all the regulations when setting up the business rather than a government inspector finds out once your business is established and penalizes you with hefty fine.
6. Not saving money for rainy days
The common advice every business owner receives is invest the profit back into the business. While I agree with the idea, it is my suggestion that one must invest at least 10% of the profit in various investment elements. It will help you during unforeseen situations such as the ongoing covid-19 pandemic.
If not, during challenging times your business will not have sufficient funds to survive and restart.
One can make mistakes and learn from them or learn from people who made them.That is why reading Business related books and having a mentor helps.
I hope this post is of some help.If you have any questions please let me know by commenting below and i will try to answer them as best as i can…
Until next time ….. Bye from Chef Pradeep………..
Kindly subscribe to get notified of new posts……..