6 Common Small Business Owner Mistakes

common small business owner mistakes

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.

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How This Family Guy Makes $10,000/Month Online Teaching Others How to Make, Save and Invest Money

How This Family Guy Makes $10,000/Month Online Teaching Others How to Make, Save and Invest Money - Interview with R.J. Weiss from TheWaystoWealth.com

This is an interview-style post with R.J. Weiss from The Ways to Wealth.

Hey R.J. What’s your background and what do you do?

I blog about all things personal finance at The Ways to Wealth.

Before I went full-time into blogging, I spent ten years in the financial services industry. Specifically, helping families buy the right type of life insurance.

During my time with a full-time job, I’ve always had different side hustles going on. From freelance writing, Amazon FBA, conversion rate optimization, to website design — there were many projects I pursued outside of work.

How did you start your career in finance?

I got started in finance straight out of college working for my the family insurance business. As I love the financial planning side of things, I choose to specialize in life insurance planning. This led me down the path to obtaining the CFP® Certification.

What made you start blogging?

The Ways to Wealth, which I started in 2016, has been my 5th blog.

The others mostly fizzled out most due to a lack of interest. But, in 2009 I started a personal finance blog called GenYWealth.com (no longer around) that had some success.

The idea GenYwealth.com was to write about what I was learning about studying to take the CFP®. The blog was, by all means, a success. I was able to gain valuable knowledge, pass the CFP® exam, earn some extra money and build up a good community.

I then took this knowledge and started a business blog, which allowed the insurance agency I was working for to generate leads.

I started The Ways to Wealth because my passion is personal finance–from investing to travel hacking, I love the challenge of optimizing my finances.

How was The Ways to Wealth born?

I didn’t have much of a plan for starting The Ways to Wealth when I purchased the domain name.

I was actually thinking it would be a niche site, which was inspired by Pat Flynn’s niche site duel. Then, I came across the income reports of Michelle Schroeder-Gardner and wisely changed direction to a more traditional blog.

This change came about 6-months after starting to blog.  I did a timeline of the site in one of my income reports.

What worked best when trying to grow the site?

I had a decent knowledge of SEO. So at first, I started growing the site with email outreach. One of the first posts I had about best investing books of all time, had about 15 links to it.

This was nice to start with but was quite slow to build up, as it can take a while to earn Google’s trust.

The big turning point came when I started to understand Pinterest. I spent a few frustrating weeks on the platform, then it finally started paying dividends.

I went from about 100 sessions a day to 1,000, which was huge for me at the time.

How did you get to 3 million monthly viewers on Pinterest?

the ways to wealth pinterest 3 million monthly views

I lay out my Pinterest strategy here. But at the core the idea is to:

1) Write high-quality content that Pinners want to click through, read, and share.

2) Pin to my own and high-quality group boards, with a keyword-rich description.

3) Continue to Pin my best pins across my own boards/group boards, ruthlessly eliminating Pins that don’t perform well.

One thing to keep in mind is impressions don’t mean much on Pinterest. What counts are clicks to your website. So, you want to design not for impressions but clicks.

What aspects of the online business are you outsourcing or automating and how?

The first thing I outsourced was Pinterest design. I’ll design about 30-40 pins a month, so this was big time saver for me.

Of course, it took some work to get going. At first, I hired 5 or so people on Fiverr. I found one decent designer but the work quality deteriorated over time.

I then went to Upwork and posted a job for a  graphic designer. I found a great team down in Argentina, who I’m very happy with.

I’m currently experimenting with working with a ghostwriter. A few of my latest posts have been transcribed from my recording, with the ghostwriter making sense of it all.

I can compile about 3 posts in 90 minutes, then take another 90 or so minutes to prepare them. Saving me around 3-4 hours per post this way.

What’s your main income stream and why do you think it works for you?

My main source of income for the blog is affiliate revenue. It works because the partners I do have are high-quality businesses, who deliver value and solve real problems. This makes it easy to naturally link to such a partner.

When did you start making more than $10K/month and what was the turning point?

My first month over $10K was in January of 2018. In December of 2017, income was around $3,000 and in July of 2017 around $500. So, it was definitely a jump.

What happened then in January?

First, personal finance is at its peak interest in January.

Second, I had multiple Pins go viral.

Third, in November I started driving traffic via Facebook to the site. So, in January I could take campaigns I’d been fine-tuning for a few weeks and scale them.

How do you balance work and family life?

I have a routine I stick to Monday through Friday.

When inside of my designated working hours, I work. When outside of these hours, I’m not.

This is a lot easier said than done. But the thing important for me is not to take work everywhere I go. This means I don’t have any apps on my phone that are work-related (email, analytics, etc..)

What are you 3 best finance tips for newbies?

  • Focus on your savings rate. How much you save is the most important decision you’ll make.
  • Small incremental improvements add up over time. My favorite example is increasing your savings rate 1% every quarter, means you’ll be saving 20% of your income in just 5 years.
  • Study happiness. Become a student on how to increase your level of happiness. The natural result is you’ll want less overtime, making the game of personal finance a lot easier to win.

What books, blogs or podcasts help you stay motivated along the way of growing an online business?

I read a fair amount to keep fresh ideas in my head.

My favorite podcast is The Tim Ferriss Show.

Two blogs I enjoy reading are:

Farnam Street
Barking up the Wrong Tree

And as far as books. I try to read one a week. A few books I would recommend to online entrepreneurs would be:

Deep Work by Cal Newport
The Compound Effect by Darren Hardy
The Four Hour Work Week by Tim Ferriss

Pin this post if you enjoyed the interview.

Check out my interview with R.J. from TheWaystoWealth to see how he entered the finance niche, started making money blogging, began bringing traffic from Pinterest and monetizing it with affiliate marketing, and is now making $10,000/month from his online business. #blogger #interview #blogtraffic #incomeideas #income