Benjamin Franklin famously said, “If you fail to plan, you are planning to fail. Operating a business is challenging, even on the best days. Most owners are willing to put forth the time and effort required to make their company successful. However, there are common mistakes businesses repeatedly make that prevent them from achieving optimum success. It may be too little time, lack of discipline, or simply hoping for the best outcome. The reality is that retailers who prefer to stay the same and get stuck in time fail to compete in a rapidly evolving world. Those owners who view mistakes as an opportunity to learn, grow, and build an even better business are one step closer to realizing their dreams.
Operating Without a Comprehensive Business Plan
Every retailer should have a vision of what they want the business to accomplish. Creating a comprehensive plan will serve as a roadmap and point of reference that points everyone within the company in the same direction. It identifies the best roads to travel to get to the destination where the leader wants to take the business. The plan should have a one or two-page executive summary. It gives an overview of the business, ownership, projections, market conditions, competitors, operations, marketing objectives, and financial goals. Research indicates only 33 percent of small businesses have a formal business plan. However, companies with a strategic plan are better positioned to succeed.
A business plan is not intended to be set in stone, never being changed or updated. It is a continually reviewed reference to verify that the business is growing and meeting its projections. Knowing that the company is meeting its goals motivates the organization to work towards even loftier goals. Results that continually fall short may signal that it’s time to revise the plan in specific areas. Ask yourself:
Lack of Financial Knowledge
Businesses must have capital to be financially solvent. Insufficient funding means the business is in trouble when the doors open. This scenario typically involves poor financial planning, budgeting, and cash flow problems. Entrepreneurs can’t base the prospects of a business on ambition alone; it’s critical to have enough money available to pay the bills and manage unanticipated problems. The initial funding can come from personal funds, bank loans, government loans, or crowdsourcing; have a solid plan to avoid borrowing more money within the next few years. Any source approached will question the viability of the business and its leadership.
Being Resistant to Change
Customers’ buying behavior, market demographics, and technology change daily. Being oblivious to these changes or failing to adapt to new situations will make the business less responsive and competitive. The global pandemic forced everyone to change their behaviors and think of life differently. Food deliveries and working remotely from home surged, home improvement customers ordered online and picked up goods at the store’s drive-thru station. Older people become adept at using technology. Many of these accommodations continue to have an impact on our society. Store owners must be aware of the trends, regulations, and challenges that dictate the direction of the home improvement industry.
Making Customer Service A Low Priority
Any business will only survive a short time if it has a reputation for poor customer service. People eagerly tell their family, friends, and shoppers on the Internet when service goes wrong but rarely report when stores get everything right. Word of mouth is one of the most potent forms of marketing. It can significantly impact profitability: Ninety-five percent of consumers connect customer service to being loyal to a business. Equally important, 61% of shoppers would switch to a different company after one instance of poor customer service.
Failing to Recognize the Need for Marketing
One barrier to recognizing the need to market the business is the belief that marketing is for big companies and requires a significant investment of money. While it does require time and effort, the results can be considerable for engaging customers, generating revenue, and staying competitive. Businesses that ignore marketing can experience stagnant growth and declining revenue. Many stores must attract new customers and gradually lose their existing customers simply because their competitors aggressively market their goods and services.
Impactful marketing should create excitement and make your business stand out from the crowd. Home improvement stores can differentiate themselves by being authentic and sharing interesting tidbits about their family, employees, and community events on their websites. This approach is one of several low-cost options for promoting new products, seasonal merchandise, and special offers. Additionally, you don’t have to be a marketing expert to set up accounts on Facebook, Pinterest, YouTube, TikTok, and Instagram; these media channels generate a sense of immediacy and are ideal options for delivering targeted messages to a select group of consumers. Here are a few questions to keep in mind.
Pivot Quickly to Correct Mistakes
Once you recognize a mistake, it’s time to take action to correct it rather than repeating it so often that it becomes part of the company’s D.N.A. Small-to-midsize businesses are resilient and know how to turn situations around when solving the problem becomes a priority. It’s up to owners to decide when it’s time to pivot and change direction.