1. Poor cashflow:
Cashflow is the life blood of your business because without it you cannot survive. Even the most profitable firms can find themselves going out of business because their cash is tied up in unpaid invoices.
2. Lack of focus:
If your business is trying to be everything to everyone, you are bound to overstretch yourself and your resources. By establishing a niche for your business and focuing on being great on what you do best, you will provide better service and create more satisfied customers. Without focus and achievable goals, many businesses find it hard to set priorities and achieve their full potential.
3. Lack of planning:
The most important document that any business has is its business plan, which documents what you intend to achieve during the next 12 months and how you plan to do it. This needs to be communicated to everyone in the busines to ensure everyone is working for the same goal.
4. Lack of performance monitoring:
So you have a plan, but thats not the end of it. You should constantly review your progress to ensure you are meeting your business goals and that your staff are meeting their personal potential.
5. Relying on a small number of customers:
Having a small number of loyal customers is not a bad thing. If you follow the 80/20 rule. Then 80% of your sales will generally come from 20% of your customers, but you need to consider how you would cope if your largest client shut down or cancelled your services.
6. Insufficient knowledge of the market:
To be successful in business you need to have your finger on the pulse and constantly adapt your business to meet the changing needs of your target market. Carry out research contintuously on your customers needs and find out what your competitors are doing about it too.