Five Common Mistakes Made By UK Businesses
1.Putting price first
Whilst it’s important to have a good idea of what your target retail price is and your target cost price, please don’t put that as your priority when you start speaking to a supplier/client. Price is important, but not as important as so many other factors, such as quality, processes, and whether that contact is the right fit for you. Remember, it’s about working smart and to get the best value you should work with people who know your industry.
2.Expanding too soon
When the timing is right, expanding the company can be a clever move. But if you don’t have enough cash or equity to back it or the main employees, business processes and supply lines to sustain such a move, jumping into new premises and stockists or escalating the size of your operation begins to sound like less of a good idea. Sitting down to make a detailed growth and costing plan will make it clear whether your company is prepared or must first expand.
3.Not having a plan – missing out on incentives
Every new business must have a comprehensive plan. This document should include market research, clear financial forecasting, details of marketing channels, and benchmarks you can use to measure your progress. The business plan is a living document – so once you’ve written it, you need to make sure you keep going back to it as you continue your journey.
You should actively engage with a “growth accountant” who should provide you with the back-office support to manage your business and be able to tell you what’s working and what’s not. Adapt, adapt and execute.
4.Ignoring your brand
Branding is a crucial exercise for every small business and it’s only becoming more important. Your brand comprises many different elements – not just your name and logo, but also the tone of your communications, the customer experience, and even how the organisation itself is run.
5.Trying to do it all
The business world needs people who can wear a lot of hats, but if you do it yourself, there comes a point after which the organisation will suffer. One of the biggest rules that new business owners produce is that once the company begins to expand, they are unwilling or willing to delegate responsibility to others.
The business suffers a lot when a business owner tries to do everything. We’ve seen a lot of business owners who are willing to take on challenges (great) but sometimes commit to tasks which can cause stress and take up a lot of time.
As a new business owner, you are responsible for defining your strengths and weaknesses and then recruiting someone powerful where you are not so that you can spend your time on the areas you can add the worth with the most. Although time may be limited, it is necessary for your business success and your well-being to invest time in hiring and developing employees who can help your new company continue its growth.