Management

10 Ways to Lose Money in Your Business

By PAM LONTOS
Chances are that you’ve read numerous books and articles on what to do to succeed in business. But often, knowing what not to do is even more important. In order for your company to make more money, be sure you’re not inadvertently making any of these top 10 business mistakes.
Mistake #1: Prejudging your customers.
They say you can’t judge a book by its cover, but all too often, business owners prejudge their prospects and customers before ever talking with them. How many times have you met someone and thought, ‘I doubt he can afford my product,’ ‘she looks like she’d be impossible to work with,’ or ‘this person isn’t my ideal client’? Rather than prejudge and dismiss who could be your next best customer, suspend judgment and take the time to get to know each prospect and client.
Mistake #2: Taking too long to follow up.
If someone calls or e-mails to inquire about your products or services, how long does it take you to get back to them? While many business owners think it’s OK to reply within three days, you really need to get back to people within 24 hours or less. After all, if they’re contacting you for information, they are likely contacting your competitors as well.
Mistake #3: Not working with someone because of imagined slights.
If someone is having a bad day or is not feeling well, they may say or do things that you think are intended in a mean-spirited way. For example, a prospect may ask, ‘how did you get into this business?’ But because of their demeanor that day, or because they’re rushed, or because of any number of other reasons, their question might come across to you as though they asked, ‘how did you of all people get into this business, because you certainly don’t look smart enough to do this?’ Never take anything a customer says or does as a personal attack. It usually isn’t.
Mistake #4: Making prospects and customers feel unimportant.
People want to know that they’re more than just another sale to you. They want to feel that you really care. For example, one business owner was stumped as to why one of the company’s best customers stopped buying. Finally, she asked the customer what happened, and the customer explained that, in the past, the business owner had had always taken her out to lunch once per quarter, and they hadn’t done that for nearly six months. As a result, the customer felt that she was no longer important. Upon hearing this, the business owner promptly took the customer out to lunch, and she got a sale. Therefore, take an active interest in your customers. Remember their birthdays. Send them a small gift on their anniversary. Do whatever you can to make each customer feel special.
Mistake #5: Not letting your staff handle important issues.
When there’s an issue with a customer, can your staff take care of most of the situations? Or must everything wait for you to resolve it? When you make customers wait for you to get an issue resolved, you’re giving them extra time to stew over the situation and get angrier. Instead, give your staff the training and tools to handle whatever situation arises so they can make the customer happy right away. Remember, you want your customers to always leave your store or office happy and with all their issues resolved. That’s the best way to ensure repeat business.
Mistake #6: Being inflexible with your hours.
We all want life balance, but sometimes work is not a 9-to-5 job. You have to be flexible if you want to get the sale. That means, if you have a good lead or a customer who is ready to spend money with you now, you may have to work outside your normal business hours. So be open to returning phone calls after business hours or even meeting with a client on a weekend. You can always balance out the extended hours you put in one day by taking time off another day.
Mistake #7: Waiting too long to make an important decision.
In business, the speed at which you can make an important decision is critical to your success. Opportunities won’t wait until next month, next week, or even the next day. To prosper, you have to take action quickly. For example, if you interview someone who seems perfect for your open position, make an offer immediately. If you wait, another company will also think the person is perfect and hire them. Or, if you have an opportunity to sponsor an event at a good price, secure your spot. When you hem and haw over the ROI of the decision, by the time you make up your mind, all the sponsorships could be bought. Trust your gut when it comes to decision making; it’s usually right on.
Mistake #8: Making it impossible to find your contact information.
Make sure your contact information is easy to find. On your website, your phone number and e-mail address need to be prominent on every page. Nothing frustrates customers more than wanting to contact you but not being able to because they can’t locate your phone number on your website or in your e-mail signature. Even the most loyal customer will eventually give up and call your competition simply because they made their contact information visible and easy to find.
Mistake #9: Using cheap marketing materials that make you look bad.
Your marketing materials tell a lot about your company — not just in the words on the page, but also in the overall look and feel of the piece. Take a good look at your current marketing materials. Do they look professional? Are there misspellings? Do they properly represent you? When your marketing materials look like an amateur created them, or when they’re riddled with errors, you send the message that you’re unprofessional and incapable of delivering quality work. Make sure your marketing materials present you in the best light.
Mistake #10: Being rigid with your contracts.
If your business uses a contract with customers, it’s definitely an important part of the transaction. However, just because it’s important doesn’t mean it can’t also be flexible. If someone requests a change to the contract, consider it. If it’s something small, give in to it. Realize that sometimes, people just want to feel as though they’ve won — that they negotiated a good deal. So if the item they want to change is small and not that important to you, let them have it. And rather than give them more time to think about it while you reissue a new contract, allow them to simply handwrite in the change and initial it. The quicker the contract is executed, the sooner you’ll get the sale complete.

Bottom Line
Of course, taking advice from others can be hard for any business owner. But why repeat the mistakes others have made? Why not learn from them so you can shorten your learning curve? When you take the steps to avoid these top 10 mistakes, you’ll be on the fast track to long-term success.

Pam Lontos is President of Pam Lontos Consulting. She consults with businesses, speakers, authors, and experts in the areas of marketing, publicity, and speaking. She is a past vice president of sales for Disney’s Shamrock Broadcasting, where she raised sales 500%, and she founded PR/PR Public Relations. She is the author of I See Your Name Everywhere: Leverage the Power of the Media to Grow Your Fame, Wealth and Success. She is also a former professional speaker; (407) 522-8630; [email protected]; www.pamlontos.com