This article is targeted to small, minority and women owned businesses that are in the beginning stage of their business and want to take their companies to the next level. I wanted to share some of the mistakes I have made, and some of the mistakes I consistently see other small, minority and women owned firms ( MWBES) make that are sabotaging their efforts.
- Going it alone: even the most gifted and talented entrepreneurs need trusted or advisors that understand business goals and provide accountability around reaching those goals. This person or persons will also provide you with tips, resources and shortcuts to help you get to the next level. More importantly, they are not afraid to have difficult conversations with you – like telling you when you are wrong or letting you know when you are losing focus. This relationship is formal with built in accountability, goal setting and feedback. This could be a coach, a mentor or mastermind group.
- Financial Illiteracy: I am still seeing entrepreneurs struggle with how to price their products/services. What is of even greater concern is that many small business owners are often unclear as to whether or not they are making money because they are very uncomfortable with the financial side of their business. Unfortunately, as an entrepreneur there is no getting around knowing and understanding the financial end of the business. You must take the time to learn about each aspect of your business finances; at minimum you must be aware of your breakeven, profit margins and overhead expenses. You should also familiarize yourself with local, regulatory and contractual obligations for record keeping, reporting and paying taxes.
- Cash flow: when we think about growing our businesses, it is essential to accurately project start-up costs and cash needed to support new contracts for at least 60-90 days. To that end, as business owners we really need to be clear on the size of projects we can take on with our own resources, and know when and what opportunities to say NO to. Small business owners must also conduct due diligence on all potential clients (including prime contractors and government agencies) ensuring that they have strong financial capabilities and track record of paying suppliers on time. Finally before finalizing agreements –review payment terms and attempt to negotiate more favorable terms for your company.
- Focus: part of the joy of entrepreneurship is the constant flow of ideas – from one day to the next we have the ability to see opportunities in a variety of areas. The key to success for entrepreneurs is razor sharp focus – completing and executing one project from beginning to end, allowing ourselves to analyze results and get feedback before moving on to something else. There is nothing wrong with having multiple dreams or ideas, but is really important to stay focused on your mission, not only for yourself but for your clients and employees. You need to be clear on who you are and what product or service are you offering so that buyers are not confused.
- Marketing: anytime I hear someone talk about not having enough clients, they are often times the same people who are doing “some” marketing – meaning a flyer here and there or attending some networking meetings. You don’t need to be a marketing expert or have a huge budget for marketing to achieve success – what you do need is a consistent and measurable plan to communicate with your target audience. Consider who is your target audience, and what’s keeping them up at night, then find a way educate them on your products and services in an authentic and clear way.
Are you sabotaging your business? We all do it from time to time, lose focus and fall off track – it happens. If this sounds familiar to you, get back on track by acknowledging areas you need to work on and ask for help.
