20 Mistakes that Businesses make.

I have been a professional Accountant, Tax Agent & Business Adviser for the past 27 years; I’m frequently asked what some common mistakes small & medium-sized businesses make are.

I have taken the time to prepare a list of 20 Mistakes that Businesses make when operating as any business.

1. Not having a clear business plan: A clear business plan helps to define the direction of the business and can serve as a roadmap for success.
2. Not correctly managing finances: This includes not having a budget, not tracking expenses, and not having a system for invoicing and collecting payments.
3. Not marketing the business effectively: This can include not having a website, not utilising social media, and not networking with potential customers.
4. Not keeping up with industry trends: Staying current with industry trends can help a small business stay competitive and relevant.
5. Not seeking out advice and mentorship: There are many resources available to small business owners, such as small business development centres, mentorship programs, and industry groups, that can provide valuable advice and support.
6. Not being organised: This can include not having a system for managing tasks and projects, not keeping accurate records, and not having a system for storing and organising important documents.
7. Not correctly managing inventory: This can include not having accurate inventory counts, not monitoring inventory levels, and not having a system for restocking inventory.
8. Not prioritising customer service: Providing excellent customer service is essential for any business, and it is crucial to prioritise this to retain customers and attract new ones.
9. Not being responsive to customer needs: It is essential to listen to customer feedback and be responsive to their needs and concerns to maintain a positive relationship.
10. Not setting clear expectations: Setting clear expectations with employees, customers, and other stakeholders helps ensure everyone is on the same page and working towards the same goals.
11. Not investing in employee training and development: Providing ongoing training and development opportunities for employees can help to improve their skills and performance, which can ultimately benefit the business.
12. Not having a diverse team: A diverse team can bring various perspectives and experiences to the table, which can be valuable for problem-solving and decision-making.
13. Not having a work-life balance: Small business owners need to prioritise their well-being and ensure a healthy work-life balance.
14. Not being adaptable: The business landscape is constantly changing, and small businesses need to be able to adapt and pivot as needed.
15. Not having a plan for handling challenges: It is essential to have a plan in place for handling challenges and setbacks that may arise to minimise their impact on the business.
16. Not having a plan for growth: A growth plan can help a small business scale and expand over time.
17. Not protecting intellectual property: It is essential to protect any intellectual property, such as trademarks and patents, to prevent others from using or exploiting it.
18. Not having a system for managing data and information: It is essential to have a system in place for managing data and information to ensure that it is accurate and secure.
19. Not having a system for managing risk: Identifying and managing risks can help a small business avoid potential challenges and protect its assets.
20. Not seeking legal advice: Small business owners need to seek legal advice when making important decisions to ensure that they are in compliance with laws and regulations.

If you have questions with regards to the above or would like some more detailed advice, please get in touch with me in either my Newcastle or Maitland Offices. My contact details are (02) 49336888 or office@bottrellaccounting.com.au.