Give your small business the chance to thrive
Avoid these mistakes to increase your business’s chances of success.
Small, medium, and microenterprises (SMMEs) are a vital part of our economy and a major job creator. But to succeed as a small-business owner, you need the mind of an entrepreneur, the heart of a lion and the single-minded persistence of a mosquito. Your business will face many potential pitfalls that are out of your control, but there are also common mistakes that many start-up owners make that can cause an SMME to fail.
Being able to spot and correct these avoidable errors gives your business a better chance of thriving.
Top 5 mistakes that small businesses make
1. Not listening to customers or acting on feedback
Never ignore constructive criticism from customers or clients. Some companies pay consulting firms large sums to get feedback from customers on ways to improve their processes – but if you pay attention to your own feedback channels, you can get those invaluable insights for free. You might think your product range, on-shelf or e-store layout, pricing, etc, is ideal, while it isn’t what works best for your customers. You won’t know until you see things from their perspective.
Read and respond to reviews. Don’t take it personally – rather see criticism as free expert advice that you can act on. Listen to what your customers have to say and understand their pain points, and you’ll be able to provide better service and cater to their specific needs. This should result in better reviews, return customers, and more word-of-mouth recommendations.
2. Not having emergency cash flow
Just like your personal finances, your business will need its own emergency fund. The future is unpredictable, and you never know when you may need cash to pay unexpected business expenses. It could be a slow month with drastically reduced turnover, or equipment crucial to your operations breaking down and needing urgent repair, but an emergency fund is non-negotiable.
Insurance is something that is better to have but never need, rather than need it but not have it
You should make a deposit every month in this fund, but it may take some time to build up enough to cover your emergency needs. A business credit card is an alternative solution to short-term cash flow fluctuations.
Our small-business credit card is personalised to your individual needs and affordability, which is great if your business is just starting out and doesn’t have a big track record.
3. Not advertising and marketing on social media
Social media enables you to market your business through both paid and organic traffic. You’ll get to interact with customers and build a community that responds to your brand identity in ways that you can’t achieve with traditional advertising.
Customers can provide honest product reviews, share your posts with their friends and engage with your brand directly. A consistent social media presence is especially important if you have an e-commerce store and want to create the same personal relationships that customers experience face to face in a brick-and-mortar store. Facebook, Instagram, X and TikTok are just a few of your options – some even allow you to integrate your e-store into your social platform.
4. Not adapting to change and embracing growth
To be a successful entrepreneur, you need to be able to operate outside your comfort zone and adapt to rapid changes in the global and local business environment. Look for ways to add new technologies and marketing strategies to your business constantly to make your operations more efficient and profitable.
Growth is another indicator of small-business success, if you’re reinvesting profits in your business to make it healthier and even more profitable. If you decide to grow the scope of your business, consider creating and selling new products or services. A business loan or an alternative credit solution could be the tool you need to take your business to new heights.
5. Not taking out business insurance
Even if you’re running a business from home, businesses need insurance. If a fire, storm or theft were to damage your business equipment or result in you losing stock, having insurance could be the difference between getting back on your feet quickly and having to start again from scratch. Like a parachute or a disaster management plan, insurance is something that is better to have but never need, rather than need it but not have it.
Get everything you need to grow your business. Just SimplyBiz it!
SimplyBiz is a free resource for business owners by business owners and powered by Nedbank as part our Banking and Beyond commitment. Join SimplyBiz.
