Whether you’ve just started your business or you’ve been at it for a while, there are certain things everyone overlooks from time to time. Don’t let your business fall apart before you even get started or have to shut down after years of hard work because of these common mistakes.
Not Having a Marketing Plan
What’s your plan for attracting and keeping customers? You can’t rely solely your amazing, wonderful, product or service to bring people in the door. You need a plan to get their attention and convince them to spend their money with you. Creating a marketing plan can help you do just that.
Pricing Too Low
It’s a common mistake, because you either want to undercut your competition or you don’t realize what your product or service is truly worth. Do your research and don’t be afraid to increase your prices. For a great product or excellent service, people will pay more, and you’ll make more.
Neglecting Your Accounts Receivable
You’ve sent invoices out only to let them sit, gathering dust, while your client continues to ignore them. This will kill your bottom line. Create a late payment and collections policy and then enforce it. You provided the service or product, and you deserve to get paid, but you may have to work for it.
Overestimating Future Sales
When your business is new, you’ll have to rely on mentors and industry information, but eventually, you’ll build a history of sales. Let history be your guide when you create budgets and forecasts for your business. Saying that you’ll double sales over the holidays sounds great but it may not be realistic. Set real sales goals, implement the marketing plan, and if you miss the mark, readjust.
Failing to Buy the Right Insurance Coverage
In Rhode Island, business insurance can be very specific depending on your industry and your business model. Liability, property, auto, workers’ compensation, cyber liability, and other insurance policies may be necessary to properly protect your business. Talk to one of our insurance agents today to make sure that your business has all of the right coverages in place.
Owning your own business can be an amazing and fulfilling adventure, but it can also be very stressful. By avoiding some of these common mistakes, you can reduce your stress and increase your profitability.