Forum - Ten most common mistakes when running a business
Ten most common mistakes when running a business
Tue, 23/02/2010 - 10:29 — Mark Williams
Turnaround expert Ross Stuart has published an eBook on how to avoid the ten most common mistakes when running a business. According to the press release: "Stuart has transformed the fortunes of companies all over the world, but when he arrives he finds the same mistakes. 'Generally I encounter similar problems in every business, he says, 'they're just disguised differently'."
The ten most common mistakes Stuart has identified are:
1 Ineffectual, poorly trained senior management
2 Lack of leadership and robust governance: no clear direction and support from the top
3 Senior management in denial
4 Poor quality
5 Narrow customer base
6 Poor financial systems
7 Poor communication with the employees
8 Poor stock control
9 Little or no marketing expertise, a depleted and demotivated sales force
10 High overheads
To request a copy of the eBook email tencommonmistakes@mitchellphoenix.com or visit www.mitchellphoenix.com
Do you agree with the list? is there anything you would add? Are these problems relevant only to big businesses or can small firms also learn valuable lessons? What do you think?
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Simply not being prepared is one of the biggest downfalls and thinking you can do everything yourself without help from others no matter how much business you take on. You are not all knowing.
I would say first of all:
Lack of objective and precise Primary Market Research.
Even more precise, lack of Quantitative Market Research.
Stop asking the obvious excellent terrific feedback from your family circle but ask your real potential clients!!!
In my experience working with small start-ups, the commonest mistakes relate to Stuart's 9 and 10:
* Expecting business to come to you, rather than realising that you need to get out there and sell
* Wasting money unnecessarily - for example, buying new when secondhand will do
Of course, ultimately it all comes down to Stuart's 1 - management. I've had dealings with quite a few substantial companies where management blame the problems on their employees (the ones they recruit, train, motivate etc) - I'm never quite sure whether to laugh or cry.
Chris
Nice information you have posted here about the mistakes has done when running a business. I want to suggest one tip that will help you to minimize these mistakes perhaps it will help you. Before starting a online business one should take ideas from any business support service center. It would be helpful for business owner.
Thanks Mark
A good list here and one that all business owners should be using to examine their own business objectively - not easy to do but very effective. If you work on fixing these elements it will improve the performance of the business - fact! - but all too often the business owners or leaders don't want to believe that there are issues, and consequently the issues don't get addressed. The learning culture needs to start at the very top of the organisation.
I would also add to the list:
Lack of innovation and/ or adaptability.
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