When you are running a business is important to keep in mind the following question: How are you managing your business?
Many people believe, that if a business provides revenue, then it is a success, but unfortunately it is not. There are many mistakes taken by people when they are managing their business.
These are the most common mistakes:
1. Business without continuous improvement
Improvement is important to businesses because if you stay behind the progress, your business will become obsoleste and therefore nobody is going to buy products from you.
I have seen many businesses going to bankrupt because the service they provide. If you provide a bad service you will get angry customers and then low sales.
3. Marketing issues
A business needs marketing, otherwise you will never get customers, however a bad marketing campaign is like a business with advertising. This is one of the most common mistakes.
4. High prices
I have seen many businesses that rise their prices in order to have more profits, but remember, people mostly buy because the price, so, if you have competitors, pricing becomes a major issue. If you have high prices, your competitors will low their prices so you will lose your customers.
5. Low investment
Let's suppose that you are going to launch a new business, so you have a certain amount of money to setup it. If your business will cost $ 10000 and you already have $ 10000, so you can set up your new business. Wrong, this is one of the most common mistakes, and the major reason for businesses going to bankrupt. Why? Because at the very beginning your business is not going to give you any profit, you will get negative numbers (- dollars) and if you already spend all the money, how are you going to keep your business running without money? You must have 3 times money than needed for investing.