Business growth is a primary goal for almost every business and realizing that growth can be an exciting time for business leaders. Yet, it’s also a time when companies may struggle with growing pains and could see themselves falling victim to one of these common business mistakes.
If running a thriving, successful business is the goal, your Safeguard Advisor has everything your business needs to run and grow. As your business matures, we know you can never be complacent about growth. That’s why our products, services, and advice are here to make managing your business easier and more effective.
What are common business mistakes in periods of growth?
Three common business mistakes during periods of growth include:
- Trying to appeal to everyone.
- Not understanding your cash flow.
- Not asking for help.
Your Safeguard Advisor can help you establish a successful and thriving business with personalized strategies tailored to fit your unique needs and goals.
Mistake #1: Trying to Appeal to Everyone
Casting a wide net might work for fishing, but it could be a better strategy for business growth. Many businesses say they target anyone interested in their products or services, but this ‘target ‘needs to be narrower. To appeal to everyone, you will likely connect with no one instead.
Targeting a specific market does not mean excluding people who do not fit your criteria. Rather, target marketing allows you to focus on a particular market that is more likely to buy from you than other markets. Identifying your target market gives your company a much more affordable, efficient, and effective way to reach potential clients and generate business.
To help you identify your target market, follow these steps:
- Prioritize – Look at your current customer base and work to identify common characteristics and interests, such as age, buying power, geographical location, and marital status.
- Gather Data – Seek statistical data regarding your target markets’ demographics, market segments, needs, and buying decisions. This can help you to better define which aspects of your customers’ behavior or profiles are most significant to your business.
Finding the right customers isn’t always about casting the biggest net. If you want the best chance of success for your business, you need to know your target market and focus on the people or companies who wish to purchase a specific offering.
Mistake #2: Not Understanding Your Cash Flow
All businesses depend on cash flow, so to take your business to the next level, you need to dig deep into your numbers. It’s important you understand your inventory levels and cash flow. Know your gross margin, net profit, and cash on hand. While it may look like the product is flying off the shelf, you will know once you look at your quantitative data.
Keep in mind managing money is a skill, and it’s also one that can be outsourced for greater profitability. If you think it’s too expensive to outsource some of your tasks, think again. While you may need more money to hire a full-time employee, there are providers you can partner with to lighten your workload.
Outsource your payroll – If you operate your business in different states, you have to stay up on the requirements for filing taxes in each one. And if you’re late in filing your payroll tax, you could face stiff penalties. Stay in compliance with ever-changing labor laws and tax codes by enlisting the help of a payroll service.
Hire an accountant – Did you know small businesses forecasting monthly cash flow have an 80% survival rate? Hiring an accountant could save your business time and money. For example, your accountant may review your monthly expenses to see where there’s room to trim the fat, sniff out hidden tax deductions, and even alert you before you run into cash flow problems.
Mistake #3: Not Asking for Help
One of the most common business mistakes leaders can make is not asking for help and believing they can do it all by themselves. Managing a successful business requires a team effort, and everyone needs mentors throughout their entrepreneurial journey. Business leaders are ultimately responsible for making decisions, setting goals, attending meetings, and dozens of other small tasks. Still, they need help to do everything and expect to do it all well.
The key to maximizing your business’s success has the right people by your side. A trustworthy advisor has the experience and expertise to make managing and marketing your business easier and more effective. They can help you transform your work by advising on projects, improving your marketing, and guiding business success.
With an extensive breadth of services and products and specific expertise in your industry, you can trust your Safeguard Advisor to help meet your time, productivity, and business needs. By working with a Safeguard Advisor, you can receive expert help with products, services, and advice to help you manage and market your business.
Key Takeaways: Common Business Mistakes
Business growth can be exciting, but it may also present growing pains for many businesses.
Three common business mistakes during periods of growth include:
- Trying to appeal to everyone.
- Not understanding your cash flow.
- Not asking for help.
A trustworthy advisor has the experience and expertise to make managing and marketing your business easier and more effective. Your Safeguard Advisor will help you execute personalized strategies that fit your business.