9 mistakes that can kill your business
It’s not very nice to see a closed shop, in particular, a retail trader, especially when you know how much blood, sweat, tears and money has been invested in setting up and managing its business. However, a report from the Agency for Small and Medium Enterprises, published in January 2016 shows a not very simple. Agency workers have asked the industry if last year were thought to close the company permanently. The response was dramatic: a quarter of respondents in commerce (26%) said they have considered such a move. The main reason for closing the business’s profitability problem. Profitability, as have more success ‘dads’ Bob Peeves, known as “Dr. Kimonaot [nt: retailer]” claims are 9 common mistakes, direct or indirect, which hampers profitability and lead to death affairs retail – sometimes even before he was born:
Wrong / bad partener: a good business partner can take the business to new heights, and if he takes an active part in managing the business and whether it is a silent partner. But without investing in a check careful and detailed (due diligence) future spouse there will always be a high probability that the decision to work together to be one wrong, and that the excellent relationship that you imagined it to start way to transform a problematic reality. In partnership decision on each side should know exactly what brings “table” the other side, as is done in case of disagreement, which are the responsibility of the individual. Partner is a worker that can be easily dismissed – is more like a breakup with husband and he will be difficult and painful. Opening a new business it is usually accompanied by great enthusiasm. It is important that you and your partner to become responsible business long after initial excitation estompeza – otherwise, the project has no chance.
LOCATION wrong “location” is one of the most common clichés and rsapandite retail world, but you really tell? Few of us hit the road with detailed information on the exact locations of entrances and exits of the city’s commercial centers, data on traffic trends during the day and updated data on demographic trends that place correct. Luckily, rents can serve as a good indicator. Yes, you can save 30% to rent the store that is not on a main street, but chances are these 30% or more to give it the advertising costs for buyers you bring to your store. You do not want to be just 500 meters from success? True, “Aroma” [N.T .: renowned coffee brand in Israel] can open a branch almost anywhere and enjoy a steady stream of clients – but not your business “Aroma”.
One to start a business: It’s great that you have a vision, but to realize that one is a challenge. You can do a job for two or three people, but you can not be two or three people. You need to hire people to help you manage your business – be it staff office, store manager or assistant. You need someone to help you do the job of two or three people, so do not wear out, become sullen, to stop focusing on your customers – and lost vision and business.
Do not fall in love with the products we sell: choose to sell a special collection of products that is impossible to find in any of the big networks is very good. To see a shop full of merchandise and listen to your customers as you say “I love shop ‘but without buying anything at full price – that’s a problem. Should you sell merchandise at full price or to recognize that there is a problem, and seek new directions for choosing inventory.
Do not learn the basics: profit and loss, cash flow and balance – are the cornerstones of running a business. If you do not learn these topics is fine, but then you have to pay someone to take care of them for you (even in this situation you have to prove you’ve mastered the material, even if basic). Otherwise, you may find yourself without money to pay suppliers, or worse, wages, and this is a very confusing situation for you.
Improper hiring of employees: Do not stand in front of a candidate trying to convince yourself that it would be good and not hire friends to work for you. Grant for job interviews and trying to make sure sis choice to be happy staff. When you find people who are suitable for work and nature of the business of business, do everything possible to keep them. Need more advice about this? See 5 techniques for keeping good workers.
Do not lead the team, your role is not to be Boss – Your job is to manage the activity and to train your people in such a way that they work better than you as salesmen and service providers. If you build a strong team, then you can build up your business immune to competition. If you missed the opportunity to train employees right from the establishment of business, you will always find the battlefront. You have to invest in your people – otherwise they will not invest time and their loyalty to you and your customers.
Do not be such bad: Yes, it is important to find a balance between career and personal life, but when you’re working – you work. Acquis does not allow the smartphone to keep you connected to home when working, it is a double error. Once because you will be distracted all the time, and the second time because there is no chance that his team will not imitate. Therefore, to lead a good personal example – without long lunch without taking children with you to work without leaving home early. You have to dose your distraction, or stay with a personal life, but without a deal.
Do not rely only on promotions is good to organize seasonal or occasional promotions to get rid of goods or to bring traffic to the store in weak periods. But following a strategy of constant reductions means that you feel the need to pay customers to come buy. You must first evaluate the price of the products wisely, otherwise you will not end the month balanced.
Do not let your business to fail because of mistakes that can be avoided with relative ease by the attention and care. Investing in choosing the people around you, attention to feedback from customers and using promotions as a tool rather than a way of life takes on track to win.