Poor business management can lead to a number of problems within a company, such as lack of control over planning, accounts, customer service, staff and even the entrepreneur's emotional balance. The main reason for these errors is a lack of knowledge and understanding of topics related to administration, management, among others.
With the market becoming increasingly competitive, good management can be a decisive factor. And to achieve this, it is not enough to invest only in equipment or hiring new professionals. It is necessary to take into account a series of other factors that involve organization, standardization, goals, qualification, leadership and the use of technological solutions.
In other words, learning about management also helps you know what you should not do in your business. Here are some very common mistakes that should be avoided when managing your business:
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1. Underestimating the Business Plan
2. Not studying the market
3. Having unnecessary expenses for the type of business
4. Not separating personal and business finances
5. Not hiring good employees (or investing in them)
1. Underestimating the Business Plan
Failing to do strategic planning for your company is the first big mistake an entrepreneur can make. This is because not knowing the future of your business affects all areas of the company. A business plan is not just for the beginning of a business; it must be continually reviewed. Therefore, even if your company is already up and running, it is never too late to do some planning.
2. Not studying the market
When monitoring the sector in which your business operates, look at three main points: the customer, the competition and the suppliers. First, get to know your customer, their behavior canadian cfo email list changes very quickly. Analyze your competitors: find out what they are doing that is new and how much it adds to them. Finally, strengthen your relationship with your suppliers and don't depend on just one; have at least two or three.
Read also: 6 REASONS TO USE BI AND ENHANCE BUSINESS MANAGEMENT
3. Having unnecessary expenses for the type of business
Wanting to have a commercial location in an overvalued area or huge machinery right from the start is a mistake that can financially jeopardize your company. You need to get your feet on the ground. Only after you start to generate revenue should you improve your facilities, for example.
4. Not separating personal and business finances
You need to be disciplined with your company's money. What is the business owner's salary? If you think that your pay is determined by the size of your personal expenses, you are doing what is called "bleeding the company", that is, cutting the business's profits to the bone and taking more than you should.