Running a business is a hectic experience. Do not let anyone tell you otherwise. From the start, actualization, and daily operations, every step of the way is filled with hurdles and common mistakes. Some of which, you would have to plan to scale across.
That is not to say you will not make a couple of mistakes as your business becomes operational. Startups, SMEs, and even major heavyweights in the commercial industry have made minor or costly mistakes of their own.
Most of these mistakes are quite common, in fact. Many businesses have made such mistakes and are still prone to make them again. If you are a business owner, you should take note of them and put your best foot forward for your establishment.
What are these common mistakes businesses are making and how can you fix them in the most efficient way?
Mistake #1 – Your Vendor Might Be Overcharging You
Vendors and suppliers play a huge role in determining the success of any business. Delivering supplies timely and in good condition is very important to your output.
This is where it usually gets tricky. Vendors are aware of the implications of your decision to keep using them. They may pull a fast one on you by overcharging some of the supplies.
This goes unnoticed for a long period of time and is never discovered if one is not keen. How do you stay ahead of this?
Before negotiating with your vendor in ordering supplies, check the market price for those supplies. The market price is the amount the said item(s) are purchased or bought. You need to be aware of this amount before coming to an agreement with your vendor.
Another way you can fix this issue is by treating your vendors as partners. When they feel like they are part of your business’ success story, they will fight every urge to overcharge.
You can also ask for quotations from different potential vendors. You can then choose a vendor that will deliver supplies with a fair amount.
Mistake #2 – Is Your Chosen Vendor Solving Your Business Needs?
Most times, the problem is not looking for a vendor to deliver supplies to your business. There are vendors everywhere. Thus, the problem often lies in choosing the best vendor for your business.
That too can also be a serious issue if your chosen vendor is not delivering quality supplies to your business.
Tackle this problem by reviewing the needs and importance of the vendor’s supply. You can also check how it impacts your bottom line. If the solution is very crucial, you may need to do away with the vendor and negotiate with a new one.
Mistake #3 – Subscribing To Non-Essential Expenses
A lot of businesses are dealing with too many expenses to take care of at the end of the month. While some of these expenses are very essential, others may appear so but are not.
Subscribing to non-essential services can affect your profit margin in the long run. How do you ensure this never happens?
Take your time to review all your business’ active subscriptions. Separate the essential ones from the non-essential ones. This action will help you remove unnecessary fees that your business can do without. And you would have more funds that you can channel into strategic ventures for your business.
Mistake #4 – Failure To Review Data/Wireless/Telecom Expenses
Most businesses often make the common mistake of not reviewing the expenses from wireless and telecom providers. Instead, they focus their attention on trimming down expenses from vendors.
Unchecked, these telecom expenses can affect your profit for a long time.
To take care of this problem, properly review your data and telecom expenses with available alternatives. If the charges from the alternatives are better than your current subscription, then go for it.
Mistake #5 – Depending On Your Local Energy Provider Alone
For your business to thrive, you need constant electricity to power your tools, equipment, and every other essential material.
However, it does not mean that you should be stuck with your local energy provider. Your provider may be giving you outrageous energy bills at the end of the month. You do not want to continue paying such fees.
To tackle this issue, there are several utility providers you can negotiate with. You can get the best deals on energy from other providers. It is way better than being stuck with a local provider that charges way too much.
Mistake #6 – Failure To Take Advantage Of Online Payment Options
With tech advancements the world over, online payments for a specific product or service is the in-thing now. This means credit card machines are fading into oblivion.
If your business still makes use of credit card machines, now is the time to reconsider. Take advantage of integrated online payment platforms. This will definitely take your business to the next level.
Mistakes do happen in the line of business. What you as a business owner should do is take note of these common mistakes and ensure it does not happen again.
Published by Marc Freedman
Marc currently serves as our Chief Cost Evaluator, expertly advising our client management team on how to help you successfully achieve your business and financial growth goals. A respected mentor to all he consults with, he is an avid collaborator and contributor to the spend consultant community, guiding thought leaders to formulate, design, and install the best operational solutions available to their clients.