This is the time of year that a lot of articles are written about what to do to get ready for 2014. Instead, this is a guide to the 10 actions to strictly avoid for next year:
- Avoid changing your strategy too quickly. All small business owners want to take action, but many times they make too many actions. It is critical not to change target customers, product release dates and employee compensation plans too often. It produces organizational whiplash!
- Avoid canceling your employee health insurance. With the delays in the Affordable Care Act, you have another year to make the decision. Check your renewal rates as well ask your broker to use the Healthcare.gov website to check those additional options.
- Avoid bad mouthing your competition. While this may seem like a viable marketing strategy, it almost never is. Customers want to hear what is right about your solution, not how the other guy stinks. A business culture that takes “the high road” is always more sustainable.
- Avoid buying more phones without a plan. Stop adding to the telecommunications chaos for your company. Ensure that all your devices are connected through a central voice over IP systems (VoIP) to have one seamless system that never loses customers.
- Avoid posting on social media when getting angry. While this may feel good at the time, remember those posts take on a life of their own once they are online. Write it out if you have to, but then never press the send button.
- Avoid growing yourself broke. Contrary to popular wisdom, growing a company too fast can actually put you out of business. Ensure you have enough cash flow to support any expansion strategy. While bigger may feel better, it is not always more profitable.
- Avoid bragging about your company’s achievements. In a social media world, customers really do not like people that brag. A better strategy is to highlight your customers’ many achievements!
- Avoid using business funds for personal use. Even during difficult times, this is a red line that should never be crossed. Keep a strict separation between funds for business expenses and your own personal needs.
- Avoid extending credit to customers that don’t pay their bills. Cash flow is the critical life line for your business. As a result, extend credit as a privilege, not a right. Remember, customers that do not pay on time are not valuable customers,
- Avoid borrowing more money when sales are shrinking. Never borrow capital when revenue is going down since you are then using that cash to only cover losses. This is also the best time to stay away from borrowing with family and friends, since the chance of successfully paying them back is very low.
What do you vow to stay away from in 2014?