Running a business whether big or small, requires far more than just proper planning, expansive budget and great marketing. Critical decisions need to be made regularly, but there are recurring management decisions borne out of misconceptions that must be corrected to prevent disastrous consequences. Although no company can succeed without experiencing mistakes, the following errors can be safely avoided:
6 Magnificently Unfavorable Oversights in Running A Business
- Nurturing the “sacred cow” – if your business has been running for quite some time and you notice that progress seems to have stopped, take a good look at your operations and identify if you have “sacred cows” roaming around your workplace. These are policies, rules, practices, or even employees that have outlived their productivity or effectiveness. Outdated marketing strategies that fail to generate sales leads, veteran appointment setters who fail to meet appointment setting objectives or evaluation procedures that fail to recognize poor employee performance.
- Hiring an outsourcing firm and expecting them to do everything – No, it does not mean they are inept. You just have to check-in every once in a while to check on progress (how many business appointments can you look forward to next week?) , problems they have encountered (is the revised appointment setting process productive?), and so on.
- Settling for revenue plateau – businesses should strive for growth. Just because you’re earning according to your annual revenue forecast does not mean you should settle for just that. Find ways on how to increase your revenue by seeking out new business sales leads and opportunities enhancing your business plan, or optimizing marketing strategies to maximize profitability.
- Going derailed over media – PR is not your priority, customer satisfaction is. Spending too much on advertising without leaving a budget for product development spells disaster. Sure you will generate new business sales lead but without an effective product to back up all the hype you have generated, these leads would never convert into sales.
- Over hiring – Although it is a sign of a growth when your company decides to hire additional workforce, there are important things to note before making this decision: will the projects be able to sustain the additional employee salaries? Will the additional workforce increase productivity on a long-term basis? Are you merely taking advantage of the large number of unemployed individuals willing to be underpaid? If you answered yes to the last question, then you’re definitely making a huge mistake.
- Hiring under-qualified applicants - good talent comes with a price. Not a few business owners have hired cheap under- qualified applicants with the hopes of training them through the process, only to end up micromanaging their entire business instead of developing ways to grow the business. Hiring talented and skilled employees is an investment that company leaders should not be afraid to make. They are the people who turn your plans into reality, bring innovation, and carry your business to success.
This post originally appeared at CallBoxInc
More Business articles from Business 2 Community: