Five Common Mistakes

By Christina Suter on May 26, 2018 at 07:00 AM in Business Issues
Five Common Mistakes

The Conscious-Minded Business Owner:
What We Do that Does Not Help

There are nine elements you're responsible for within your business. I've been focusing on element #4 lately, which is marketing— therefore, the following five mistakes will surround the topic of money because you need cash to stay open.

1. Pricing- Most of the people I work with as small business owners aren't charging enough for their products. People base their prices on what their feelings tell them is a fair price, but pricing is more than a feeling. The cost of goods, the need to pay yourself, and many other factors must go into pricing your product. For those who price their products well, they may overpay their employees. Conscious-minded business owners, especially, want to be better than the big guys so they give too much and earn too little. If you're paying your employee(s) more than you're paying yourself, you're paying them too much.

2. Product lines- Do you follow your client's advice and start creating new product lines, extending your hours, or any other advice? Clients don't know everything that goes into bringing a new product in so don't let them call the shots and wind up losing money in the process. If you recognize you do need a new product or product line, I encourage you to have an honest conversation with yourself and look at the numbers so you can keep up in your industry.

3. Payments- Again, are you paying too much for your cost of goods or your employees? Your employees shouldn't make more than you. If you're too giving you risk falling into the currency of employment which crosses the line from being friendly with them and being their friend. 

4. Accounting- I'm good with numbers and I still don't do my accounting; I have an accountant. If you don't do accounting or have someone to do it you won't know what kind of cash you're dealing with. If I don't keep track of my money, I make less money. 

5. Marketing- When people don't know your business exists, you don't get any clients and you don't get permission to help people. You must be findable. Even $20 per week will help you boost your posts on Facebook, get you a pro account on LinkedIn, or get your business in front of more people's eyes. Not doing marketing could make or break your business.

Your purpose is to charge enough to keep the doors of your business open.