Common Mistakes Business Owners Should Avoid

Running a new business is demanding in many ways and start-up entrepreneurs often make mistakes that bring the company to an end. ADEMOLA ALAWIYE highlights some mistakes that must be avoided
Avoiding some of the most common mistakes made by small business owners can help a venture’s chances of survival in a competitive marketplace. The challenge of growing a small business often frightens some entrepreneurs. Avoiding some common sales mistakes will go a long way toward boosting the performance of your business. Experts say learning sales skills take place in many ways. Most often, we introduce something new or we learn by imitating a best practice, step-by-step.
Sometimes, however, we can make the most progress just by learning to avoid mistakes. That’s especially true when it comes to sales performance. Everyone has something to gain from correcting errors — even veteran sales-people, who often and without realising it fall into habits that are detrimental to their success.
Below are some sales mistakes which an entrepreneur must avoid in his small business, according to experts:
Judging by mere physical appearance
Experts say that entrepreneurs who judge their clients by their mere physical appearance may lose out in certain deals. According to them, a small business entrepreneur is a salesperson and if he prejudges prospects by the car in the driveway or the condition of the home’s exterior, he may end up losing some of his best clients.
They say instead of making judgments based on appearances, rely on a consistent sales process to inform your opinion. This will enable you get the client and complete the deal which may pay off in the end.
Neglecting certain businesses
The Managing Director, Setex Company Limited, Mrs, Seline Adedejo, says some entrepreneurs often ignore certain business. She notes, “It is important to know that clients want to work with people who genuinely want their business. Customers may have no way of evaluating your level of interest. So you don’t have to assume that just by showing up and assuring that you have made your interest clear.”
She adds that the entrepreneur must ask for the opportunity to work with his clients and must not neglect any business.
Not quitting wrong clients
Experts say that a considerable per cent of your clients will not allow you to make the much desired-profit which you want. With these people, it takes more guts to walk away than it does to agree to proceed. With right clients, you make money, reduce everyone’s stress, and build your reputation.
Not listening
Entrepreneurs should not talk themselves out of a sale, according to business experts. The 80/20 rule applies: You need to spend some time talking about your company, but you should spend 80 per cent of your time listening. Clients love to talk about their problems and ideas. They did not call you to hear you talk about yours, experts say.
Selling up instead of down
Experts say in the architectural community, for instance, only about 30 per cent of what is designed gets built. If you let the prospect’s idea grow into a fantasy project, it may forever remain a fantasy. A better strategy is to allow the fantasy discussion, but try to close on a realistic project.
Not having all the decision makers at the initial visit may make your potential close rate to drop by more than half, experts add.
Not distinguishing yourself
Sales Manager, Gradit Limited, Mr. Chuks Anyanwu says, “As an entrepreneur, you must communicate the differences not the similarities which your product or service has when compared to others. Try writing it down. If you don’t know how you are different from other competitors, don’t expect your prospect to know.”
Not involving clients
Experts say your selling process should be designed to get commitment from a client, not the other way around. You may not get the major contract, but you should get something — a design agreement, a visit to your office, or a specific time for a second meeting.
Failing to use visual aids
It is important that you learn how to draw flowcharts or outline your process on paper or sketch an idea, while your clients watch. They will not only understand more, they will be less fearful and more confident in their decision to proceed, experts say.
Poor display of enthusiasm in your project
According to professionals, enthusiasm sells, and passion is contagious. So if the entrepreneur shows enough enthusiasm for both the prospects and project, his clients will return the favour.
Ignoring customer data
Every sale is an opportunity to make another sale down the road. The entrepreneur must remember that his existing customers are his best source of revenue. You can only tap them if you have a method for keeping track of them. Sales people should try and collect all the names and addresses of their customers that came to their stores over a certain period of time. Experts note that there is great benefit in keeping a database of clients.