By William Creekbaum
In the 15 years I have been with Smith Barney as senior investment management consultant, I have worked with hundreds of small-business owners and entrepreneurs. I have provided a list of traps and mistakes I believe are common among small business owners.
These traps/mistakes are common to many entrepreneurs and small business owners:
1. Getting Wedded To an Idea And Sticking With It Too Long.
Don't marry a single idea. Remember, ideas are the currency of entrepreneurs. Play with many ideas and see which ones bring money and success.
2. No Marketing Plan.
A marketing plan creates the kind of attention you need to get in front of the right types of people, companies, etc. It is what attracts people to you!
There may be as many as 25 ways to market your business at no- or low-cost. A good marketing plan implemented effectively, efficiently, elegantly and consistently, will eliminate the need for "cold calls!"
3. Not Knowing Your Customers.
Changes in your customers' preferences and your competitors' products and services can leave you in the dust unless you get to know your customers well, what they want now and will likely want in the future, what their buying patterns are, and how you can be a resource for them even if you don't have the right products or services for them now!
4. Ignoring Your Cash Position.
The world (aka customers) doesn't respond to even superior products in the timeframe that you think they should.
You'll need plenty of cash to sustain yourself in the meantime.
5. Ignoring Employees.
Motivating, coaching and managing your staff is probably one of your toughest challenges as an entrepreneur/business owner today.
Without your patience, persistence and "people skills," your problems can multiply quickly. Morale, productivity AND PROFITS can easily be destroyed!
6. Confusing Likelihood With Reality.
The successful entrepreneur lives in a world of likelihood but spends money in the world of reality.
7. No Sales Plan.
Without a sales plan, there's no serious way to gage the financial growth and progress of your business. You need a realistic map for where the sales will come from, how they'll come and from whom.
8. Being a Lone Ranger.
You might be the key to everything BUT you cannot DO everything and grow at the same time. Even modest success can overwhelm you unless you hire the right staff and delegate responsibility.
9. No Mastermind.
Get an advisory board or a mentor! Sounds crazy for a small operation? It's not! The board can be family members that you trust, or friends. Ask them to be your board of directors and review your business plans and results with them. Having someone to bounce ideas off and get an objective opinion is critical.
10. Giving Up.
Some of the most successful entrepreneurs failed several times before doing extremely well. So, if you're failing, fail. And fail fast. And learn. And try again, with this new wisdom. Do NOT give up. Yet, do not suffer, either.
I hope this helps. I can be reached at William.a.creekbaum@smithbarney.com or 775-689-8704 for more information.
• William Creekbaum, MBA, CFP, a Washoe Valley resident, is senior investment management consultant of SmithBarney, a financial services firm serving Northern Nevada at 6005 Plumas Street, Ste. 200 Reno, NV 89509.