The business world has become highly competitive with technological advances and other innovations that are focused on enhancing productivity, improving response times, monitoring process status and optimizing workflows. Data entry outsourcing is a practice embraced by most forward-looking businesses now, and accepted as a great way of reducing workload and improving efficiency. Proper planning is vital at all stages to run a small business successfully. While there are many strategies for expanding a small business, there are certain practices that could impair the business, which small businesses should necessarily avoid.
- Choosing the wrong people: This is a common mistake most small business owners make. You may go for cheaper options or opt for the most experienced candidates. Hiring cheaper employees may sound like a good deal but it can prove costly in the long run. Similarly, choosing the most experienced candidates can also be a wrong step to take because they may have an attitude or mindset that is not suitable for your small business team. It is important to give priority to quality over cost. So, do proper research and find the right candidates that fit your company and work culture. You must screen prospects very carefully and when you identify the right person, do not think twice about offering the highest compensation you can afford.
- Failing to assign tasks to others: Small business owners often fail in assigning tasks appropriately. Delegating jobs could prove difficult in the beginning but it can be made easier by eliminating tasks that no longer add value to your business. Delegate the tasks carefully – it won’t do to just hand over the task to an employee who has been with you for a long time.You must find someone who has the right skills, capabilities and motivation. Make your expectations clear. Also, have a clear schedule regarding when your staff should report to you and what results you are expecting. There should be proper and open communication so as to provide the right directions or answers at the right time.
- Poor accounting practices: Proper finance is the key to the growth of your business, so it should be handled carefully. Appoint a professional accountant or financial advisor to ensure that your accounting activities are running smooth. However,if you find it too costly to hire an accountant, consider buying some affordable accounting software that will help to keep your business finances on track.
- Avoiding risks: Risk takers are winners. Successful businesses are proactive, forward-thinking and are not afraid of any risks. These companies introduce new services, use different strategies and experiment with the latest technology. Being in your comfort zone and not taking any risk will only make you stagnate whereas exposure to risk helps you learn from your mistakes and propels the growth of your business.
- Delay in implementation of a process or system: Majority of small businesses start with no proper system or planning. As businesses grow, it is important to have a proper system that all employees follow. Creating guidelines, developing systems and processes and having a financial and operational plan will help the business to run smoothly. Delaying the implementation of a system makes it difficult to monitor and assess business growth.
Now that you know the things to avoid, let us consider some effective steps to take that will help grow your small business.
6 Key Things to Consider
- Your competency: Identify what you are good at compared to your competitors and build your business plan around your core competency.
- Your values: Every business holds certain values and ideals. Make sure that you have a commitment towards social and environmental responsibilities and a good workplace.
- Your objectives: Have a clear idea about your business goals and how long or how much you want to expand your business, and chart out a realistic plan that must be followed.
- Your product or service: Identify your best-selling product or service and thereby majority of your customers will associate with your business. It is the anchor of your business growth. If your core product or service is facing huge competition, then develop a new core business offering to avoid any negative impact on your business.
- Your most profitable areas: Often, your core product/service may not be bringing you the most profit. You may have some other offerings with high profit margins that support the rest your business. Take these products or services into consideration when planning your business expansion.
- Your core market: Identify the kind of customers who you truly rely on. Consider whether you are doing enough to serve these valuable customers, and enhance your offerings to this group. You should also consider whether you are excessively dependent on some customers or distribution channels, and the consequences if something happens with those customers/distribution channels.
Alongside utilizing effective back office outsourcing solutions to enhance productivity and enjoy cost and time savings, small businesses can consider the above factors to ensure success. Avoid the bad habits that could hurt your bottom line. Any bad habits can be identified via an honest self-evaluation and avoided. This will ultimately help in ensuring the betterment of your small business, and increased productivity and profit.