Avoiding the Dreaded Business Slump

SyskittyGuest editorial by Patricia Snodgrass

My father, stone mason by trade, didn’t turn his construction business into a fortune 500 company, and chances are you probably won’t either. However, like him, you can still grow a very successful business, if you avoid these five problems that plague nearly every company at some point.

Pitfall #1. Poor time management

If you wish to be successful, whether it being in the business of writing or the business of constructing high rises, then you must plan your business accordingly.   Create a sane, workable plan and stick with it. Generate a list of reasonable reachable goals, then implement them.  A daily goal sheet is helpful in breaking down larger tasks into smaller manageable chunks.

Pitfall #2. Inadequate marketing

One of the basic principles of capitalism states that successful companies are growing companies.  Therefore, good advertising is essential in order to let people know who you are, what your product is and how to find you. Traditional promotions such as television and radio and are good, but you can also reach a greater audience online by advertising on social media websites such as Facebook and Twitter, as well as creating online shops that will give your business a chance to grow in a number of areas. And best of all, social media is free, and it’s everywhere.

Pitfall #3. Hiring before you’re ready

It’s easy to get caught up in the excitement of opening your first business and then hiring before you are ready. Training, bonding (if handling large sums of money) preparing taxes, scheduling, unemployment benefits and insurance must all be considered before hiring someone. Make a plan early on to handle all of these considerations before hanging out that help wanted sign.

Pitfall #4.  Babying your business

We often treat our burgeoning companies like adoring parents. The problem with this is that child prodigies are only brilliant to their doting parents.  In reality, they’re just another kid on the block.

 

The best way to avoid this pitfall is to get an annual business valuation report from a professional agency.  A valuation report wipes away any glimmer of false hope about your child star and forces you to see things as they are, warts and all.  A valuation will show you exactly where the flaws lie in your business, and from there you will be able to correct them.

Pitfall#5. So much overhead, so little profit.

You can reduce your overhead by following a few simple rules.  You can buy used and recycled office supplies, or recycle what you already have. Develop a co-op with neighboring businesses in order to share advertising and marketing strategies. And most of all, utilize those tax deductions to your advantage.  Your local IRS agent will be more than happy to show you how.

 

Resources:

Mark Bowser has a nice little article on discipline (which works well for the home entrepreneur) here: http://www.ziglar.com/groups/sales/?p=643

About.com has a good article on surviving business slumps and hard times

Over at Amazon.com, this book had a lot of good reviews from people over 50 — Best home Businesses for People Over 50

 
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