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As a small business owner, you’re probably always on the lookout for the next iceberg trying to sink your ship.
It could be a competitor gaining market share, customer service issues, or a PR blunder that needs to be managed.
Whatever the cause, you know that it’s something you want to avoid.
But how do you know where to look?
A small business pitfall could be triggered by many things and it can feel like you are fighting an uphill battle. It is important to commit to keeping your own battery charged.
We have compiled a list of five potential small business pitfalls that you should be aware of and try to avoid.
Pitfall #1: Getting out-teched
This one is especially important now that the 21st century has officially started its third decade.
The rate of use of technology and innovation in business is only expected to increase.
Businesses will be the first to feel the effects of many rapid changes in technology.
Technology comes in many forms. It might be cloud computing, data analytics, or automated payroll systems. Technology now touches every aspect of business processes.
One way to keep on top of tech is to attend industry trade shows, networking events, and by following technology experts on social media.
Keep an ear tuned to the conversation around relevant tech that impacts your business.
Then, go home and research anything you haven’t heard about yet. It could save your business.
Pitfall #2: Not moving inventory
This is one of the biggest slowdowns that many businesses face today.
With so many rapid delivery solutions available to consumers (think about the infamous two-day delivery of Amazon Prime), consumers have grown accustomed to quick turnaround for orders.
If you rely on outdated logistics to move your inventory, your business will start to suffer.
Sure, having a massive used car inventory might be great if you can boast your wide selection of top-tier preowned vehicles.
However, if you don’t get customers into the showroom or cars shipped out to buyers who live far from your store, maintaining that inventory can be costly.
Make sure you’re investing in logistics solutions so that you can keep products moving and don’t have idle inventory taking up space.
Pitfall #3: Ignoring reviews
In today’s information economy, consumers rely on each other to provide valuable information about the quality of a product or service they are considering buying.
If you find that you consistently get negative reviews on one of your services or products, you could be in for a drop in sales.
Make it a regular practice to read through online reviews to find out what customers are sharing about your products or services.
If you do get some negative reviews, act on them, respond, and work to improve internal operations to improve the quality of your products and services.
You rely on loyal customers to keep coming back. It goes without saying that losing valuable customers can mean your business may not be around for very long.
Pitfall #4: Treading water
As the old adage proclaims, if you’re not growing, you’re dying.
Your business needs to constantly be looking at the market, reacting, and innovating toward a smarter growth strategy.
That is if you plan to keep your business around for a while.
With new tech, new innovations, and new talent constantly entering the market – there’s always room for improvement.
One way to avoid treading water is to review your business plan every six months.
Sit down with your management and VPs and look at your business goals, and how well you achieved them – then set a new collection of goals to aim toward next.
It’s valuable to know the direction you want to head, and it gives your team a clear idea of their role in the company.
Pitfall #5: Too-good-to-be-true opportunities
If you’re managing a small business that’s been struggling for a while, it may seem like an investor with all the solutions is what you need to re-energize your company.
Investing in outside management solutions and hiring consultants to help you improve your business model can be worthwhile.
However, it’s important not to fall for get-rich-quick schemes or other plans that just seem too good to be true.
Instead of letting a private equity company buy up your assets and take control of your business, see if a smaller, more modest solution works first.
Taking out a small business loan may be a good way to add liquidity to your portfolio.
Or, scaling back and downsizing until you have a solid plan may be the thing you need to set things straight.
As you continue on the path of thriving as a small business, be sure to look out for these worrisome pitfalls along the way!
Which of these pitfalls has your business encountered?