Avoid These Small Business Owner Mistakes

These events are common among business owners. But that does not mean they are unavoidable. With enough strategy and skill, business owners could actually avoid them so you won’t have to pack your open sign after only getting it for a few months.

Image Credit: www.marketingprofs.com

Listed below are mistakes small business owners make that could ruin their ventures.

The first of the three mistakes you see small business owners make is their underestimation of their funding requirements. Without proper initial funding, businesses usually resort to borrowing money until they drown on piles upon piles of debt. The right amount of funds and where they can be sourced should be among the first factors small business owners should look into even before they embark on their business. Otherwise, they would not have the impetus to continue their business, and they eventually fold.

There are various sources of funding for small businesses, and they should look into these options as a priority. The eventual selection of the method they use depends on several factors, including how comfortable they are about debt, how solvent the owners are, and of course, the amount they need to start the business ‘rolling.’ Small business owners should account all of these, even including the cost of your open and LED sign so that they can accurately estimate how much funds they need to establish their venture. But this is an important point: these business owners need to be wise in the selection. They need to pick the right funding method that would be easy for them to repay once they’ve earned sufficient, not bury them in debt.

Another of these mistakes is not having the foresight to address future developments. Future financial planning is not only restricted to future financial emergencies the business may encounter. The overall economy may experience a downturn, increased competition may happen, and investors may pull out, which can drain funding for the business. In connection to the earlier point, the small business owner should anticipate funding for these events so that even when they happen, the business will not be entirely affected.

The last of these mistakes is not letting the business have its own credit rating. This may be caused by the business owner using his or her own personal funds to bankroll the operation. Other business owners see the instruments that build a credit rating such as loans and credit lines as risky, so they do not bother with them and instead prefer to get funding by cash or investors. However, it is inevitable in business to eventually get a loan. Without a credit rating, lenders would not be able to decide on whether a business is worthy of extending credit to. Building a credit rating should not be too risky as long as the business owner knows how to select a lender that extends manageable risk.

Your Sign, From Good to Great

Image Credit: www.aliexpress.com

Any signage you use for your business, from a simple open sign of something bigger with your company's logo on it. But what distinguishes something that's just serviceable and a sign that really goes the extra mile and possibly attract more customers? Here are some factors:

* The sign should be simple. - Just like with any other thing, keeping it simply would have a greater impact than those that are complicated. When you only have a few elements in your signage, customer can understand easily the message that you want to convey based on your signage. The lesser number of elements in your open sign, the faster your customer will see what kind of product you are offering.

* The sign should be appropriate. - Of course, your signage should be appropriate on the matters of size and the kind of service you are rendering. If your place is quite small, then the signage should not be too large that it would look off. Also, the elements that you include in your logo should be appropriate to the kind of business that you are engaged in.

* The sign should have a recall. - When the signage that you use is unique and is designed well, then it would have an instant recall to your store. Having a great logo is one factor that you should consider because this would help a lot in your brand recall. If the logo embodies what you offer, then you are able to connect right away with your customers.

* The sign should stand the test of time. - Having a signage made can take quite a considerable chunk from your marketing budget. Make sure that you go to a signage maker that is reliable so that it would last long. Remember that what you will be investing in is an open sign that will be placed outdoors and it should be able to withstand the natural elements.

* The sign can be used in any occasion. - Any sign that you make should be general so that it could be used in any occasion be it Christmas or Valentine's Day. Making an occasion-exclusive design can be a waste of money because you can only use it for the occasion that it was made and for only a limited time.

* The sign should be one of a kind, or if not, have something that will make it stand out. - The elements that you place in your signage like the pictures and the way the graphics and letters are designed should be something that is unique only to your brand or logo. This way, your sign will come out unique and it will stand out among the many signage that line the street.

Don't Let Your Store Turn People Off

Even if your store’s open sign brings a dismal number of figures, you do not need to panic. Observe your store and see where the problem lies. If your store has one of these, then you’d definitely need to re-strategize.

Image Credit: nepalnepal.com

* Cluttered displays

Why are customers turned off: Cluttered displays actually show sloppiness. Customers would feel that the employees of the store do not care about showcasing their wares. Who would buy anything with that kind of attitude?

What should be done: Less is more so practice putting together items that would go together well. There should be coherence in the display window. Having a theme would not hurt but would rather interest more people to visit the store.

* Lighted signs that aren't working or written ones in poor grammar

Why are customers turned off: Most people secretly want to be a member of the Grammar Police. Seeing grammar mistakes is humorous as well as unprofessional.

What should be done: Proofread the signs before posting them. If you are using a LED sign, a routine checkup is needed to see if the sign is still working. If the sign is not then it would be a waste of electricity

* Mean sales people

Why are customers turned off: Mean people should not serve customers. Customers expect to be treated well since they pay for a product or service they need. If they are not comfortable with the staff they can easily move on to another store that is the store’s loss.

What should be done: When the open sign is flipped, it is a sign that the sales people should start smiling. They must entertain customers and serve them above and beyond. This would ensure a repeat customer and plenty of recommendations.

* Children running around, unless it's a toy store, of course

Why are customers turned off: Children are bothersome. They are noisy and they disturb people. If they do not get what they want, they even have a tantrum. This would be a big problem for those people who just want to enjoy a peaceful and uneventful shopping experience.

What should be done: Allot an area wherein children can play. Put as much toys and kids entertainment as you can in that area. The kids should be restricted in that area so as not to disturb customers as well as let the kids parents enjoy their shopping.

* Slow moving checkout counters

Why are customers turned off: People may be in a hurry and waiting for a slow checkout counter would make anybody frustrated. Counters are expected to work efficiently, spending as little amount as possible in checkout.

What should be done: Train your counters to work fast. Teach them how to effectively use their machine so they would not be confused in using them. Teach them how to troubleshoot simple problems to save time.