This is a guest post by Lautaro Martinez – a small business owner who is always looking for ways to run his business more smoothly and shares his tips with his readers.
Owning a small business requires a number of decisions. Unfortunately, without the right knowledge of the current market and new technology, it can be very easy for a business owner to make mistakes. Here are 6 of the most common mistakes that small business owners make, as well as the toll they may be taking on your business.
1. Having a Credit Card Processor that is Incompatible with Ecommerce Stores.
In the current era, having a website can be critical to advertising your business and bringing in new customers. It is also critical if you want to be able to sell your goods online.
If your credit card processor will not work with e-commerce stores, then you will have an extra expense when you do start offering your goods or services online (and you probably will). Remember to ask about this before you buy, to ensure you are choosing a good credit card processing company, such as Fattmerchant.com.
2. Failing to Account for Competition.
It does not matter if there is no other company out there that sells the same service or product that you do – you always have competition. This means that you still need to present what you are selling and go the extra mile to satisfy customers.
Sometimes, even nothing is your competition. If customers can either use your good or service or do nothing, they can still decide to do nothing. This is especially true if your marketing strategy is unclear.
3. Having the Wrong Credit Card Processor.
There are a number of problems that can arise when you don’t choose the right credit card processor. First, you could be getting charged unfair fees, especially if you do not consider your average profit amount when you are choosing your processor. Another common problem is low efficiency, which can take up valuable employee times and lower your customer’s experience. You may also not have instant authorization for purchases, which can cause your company to lose money from unpaid customer accounts.
4. Waiting for Credit Card Profits.
Some credit processing companies put a hold on your funds after a transaction has been profited. During this time, you lose valuable time that may be essential if you are trying to reinvest the money in your business. Others, however, may give you instant access after a customer makes their payment. Ask about how long you get paid after a credit card transaction before you choose your credit card processing company.
5. Not Understanding Your Target Market.
Advertising can be very ineffective if you do not understand your target market.
For example, imagine that you are a business that sells clothing for young adults and teenagers. Would you want to advertise only in the newspaper? Of course not. Instead, you would want to advertise on social media, on a billboard by your local college campus, and other places that young adults would see them.
By understanding your market, you will be able to advertise where you are more likely to find potential customers.
6. Falling Behind on the Accounting.
It can be very easy to stick your financial information in a pile and “get to it later.” This is especially true if you do the accounting of your business yourself.
The problem with this is that accounting work can easily stack up. Whenever it is late, you do not have an accurate representation of profits. One way that you can increase the efficiency of your accounting methods is to purchase accounting software. This not only makes the process easier, it allows you to view profits and sales over any specific period of time. This lets you find any possible problems with your business sooner.