Some well-known general requirements for business success include business plan, market research, location, capital, customer service, marketing, book keeping, etc. But for profitability and business growth you must also avoid these harmful personal habits that could crash your micro or small business:
Personal Business Habits That Will Crash Your Micro or Small Business:
1) You Cheat or Rip-off Customers
You are in business to add value, and in the process make profits. Value is what people actually pay for with their money. Defrauding or cheating your clients or customers will not give you true wealth. Financial prosperity comes from giving something of value to others, for which they are willing and happy to reward you with their money.
Value addition is the tap-root of your success in business. Therefore never cheat, defraud of rip-off your customers. Otherwise, sooner than later the news will spread, becomes common knowledge, and you are blacklisted.
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2) You Plunder Your Business
Some business owners run their business down by taking money from the business for non-business purposes. By using business funds to cater for social, family and personal expenses, you pillage the business. By taking money from the cashier and not accounting for it because you are the boss, you loot the business. Do well to separate your personal expense from your business expense. Place yourself on a salary and live within it.
Other forms of business plunder come from disloyal and poorly motivated staffs who steal raw materials and even finished products. Suppliers also plunder the business through under-supplying and over-invoicing.
All these negative practices will run any business down. You must therefore put in place appropriate measures to counter or prevent their occurrence.
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3) You Sell on Credit
Selling your goods and services on credit may result in your business having too many debtors. This means that business operating capital is tied down in bad debt, and therefore not available for continuous business operations. This situation can cripple the business and result to bankruptcy.
If you must sell on credit, then put in place an effective credit management system. Selling on credit, having many debtors, without an effective repayment plan, can cripple any business. Poor credit management can lead to business failure.
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4) You Ignore Customer Complaints
As a serious business person, you should never ignore or casually dismiss genuine customer complaints about products or services purchased from you. You only do so at your own peril.
Neglecting and not attending to customer complaints and feedback is a major cause of customer displeasure with a business. But a quick resolution will surely create loyal and repeat customers that are sure to keep you in business.
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5) You Have Poor Knowledge of Your Niche
Some business persons may not have the requisite critical knowledge of how their business niche operates. Such deficit in niche knowledge can lead to loss of market share and therefore profits.
For example, as a business owner, you must be conversant with your business peak hours, peak days, peak months, peak demand, etc., and do well to position yourself to take advantage of such highly beneficial peak periods to maximize sales and pile-up profits.
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