How Not to Run a Business

How to Not Run a BusinessEverywhere you turn, people are always telling entrepreneurs what to do to run a successful business. What many don’t hear is what they shouldn’t be doing when running a business. In this article, find out if you’re doing anything you shouldn’t be doing, so you can stop it, and continue on to achieving your goals.

 

Doing Bad Things to Gain More Money

No one wants to deal with a crook. If you’re pulling some strings here or there to make more money, stop. You may not be getting caught now, but the longer you do it, the more likely someone will find out. You could even end up with a legal issue, bad reputation, or both.

Consumers want to trust people they do business with, so be fair and kind to them. The success you see by doing business the right way may be slow coming, but it’s long lasting.

 

Spending Money Before You Make It

Yes, you need money to make money, but when you go overboard, you’ll never regain stability. Start your business slowly with as little money as possible, and as profits roll in, start spending more. Having a balance of incoming and outgoing funds will increase your chances of running a business for more than a few months.

 

Taking On Too Much

You’re an entrepreneur and that means you want to do big things in life. You want to run this business, maybe another business, and you want to include just about every service or product you can in each business. It’s great to be so ambitious, but scaling back on large plans too early will keep you from crashing and burning.

Start one business first and grow it at a rate that makes sense depending on the market. Once you’re stable with one business, start the second one. Grow the second one slowly just as you did with the first. Once the second business is stable, you can then manage both of them and grow them both slowly.

The key here is to not rush success. It comes with time. No great entrepreneur made millions overnight.

 

Making Promises You Can’t Keep

You want your customers to love you and your business. You want to give them the stars and moon, but it’s not always possible. Don’t ever commit to giving your customers something unless you know for sure you can do it. Disappointment can ruin trust, which ruins business relationships.

 

Treating Employees Unfairly

Employees are the backbone of your business. Without them, you would have to do everything yourself, and that means not being able to give your customers as much as you do now. What that means is you need your employees, and you need them to want to help you grow your business. The best way to do is to treat them well. Give them the breaks they need. Give them the pay they deserve. And always tell them they are doing a great job when they are performing as you’d like them to. You’ll see how beneficial treating employees well can be when they are singing your praises to people all over town, and when they are caring about your business success as much as you do.

 

This Is How to Run Your Business

By knowing how not to run your business, you can run your business the right way to reach the success you want. Take some time today to think about what you’ve just learned and start taking steps to growing your business the way you should be.

Image courtesy of t0zz / FreeDigitalPhotos.net

About Mohit Tater

Mohit is the co-founder and editor of Entrepreneurship Life, a place where entrepreneurs, start-ups, and business owners can find wide ranging information, advice, resources, and tools for starting, running, and growing their businesses.

Comments

  1. Definitely don’t spend money before you earn it. So many people count deposits as earned income but it is not!

    • Hi Michelle,

      You are so right. There’s always money that needs to come out, so all that money coming in isn’t money that can be spent on other things.

      Thanks for your comment!

  2. I have one to add! Price isn’t everything. Remember you don’t have to sell your product or service at rock bottom price or the other extreme. If you provide unbeatable customer service and a high quality product, customers will come back no matter the price. And it’s likely they’ll bring more customers with them.

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