Author: Dr. Rachn D. Jain

Article:
In my professional experience as a sales and marketing
coach/consultant, I've had the opportunity to work with a number
of small business owners on various issues related to sales and
marketing. The owners who are struggling to keep their
businesses afloat tend to engage in some, or all, of the
following mistakes that reduce profitability.

Mistake #1: They fail to market or market inconsistently. Once
you have committed to owning and running a business you must be
equally committed to marketing and selling the products and
services of that business. It is difficult, if not impossible,
to stay and remain profitable without a commitment to ongoing
concerted marketing.

Solution: Market all the time, every time.

Mistake #2: They hesitate to "ask for the sale". Rather than
seeming pushy or obnoxious they let profit-producing
opportunities pass them by. They worry more about what someone
thinks of them than they do about bringing more money into their
business. If you find it difficult to "ask for the sale", you
can be sure that you're not bringing in as much money as you
could be.

Solution: Practice asking for the sale.

Mistake #3: They don't ask for help or assistance in the aspects
of the business where they most need it. Most business owners
possess strengths in a particular area but whether by necessity
or ignorance they often end up working in areas that aren't part
of their strengths. When business is not going as it should they
delay or procrastinate in asking for help. Each day that goes by
with your business running at less than maximum efficiency means
dollars lost from your pocket.

Solution: Get expert advice from an attorney, accountant, or
other service professional before you really need it. Mistake
#4: They don't follow up with past customers. It is usually much
easier to reactivate a former customer than it is to attract a
new one. If you are not following up with past customers on a
regular basis you are reducing your profitability potential.

Solution: Develop and implement a regular method for customer
follow up.

Mistake #5: They don't take regular stock of their expenses.
Savvy business owners regularly appraise their business expenses
and find ways to reduce costs without sacrificing quality. If
you haven't completed a cost analysis lately, you might be
paying more than you need to be, which will reduce your
profitability.

Solution: At least once per quarter review expenses and
negotiate for adjustments as appropriate.

Mistake #6: They spend large amounts on glossy, slick marketing
materials and expect business to pour in without any additional
effort. Glossy brochures and slick marketing materials are a
nice addition to more active forms of marketing such as meeting
people, calling people and speaking to people. Brochures and
business cards, no matter how beautiful, do not replace direct
contact. If you are spending money on flashy marketing materials
rather than marketing directly you will be less profitable than
you could be.

Solution: Take those glossy brochures and hand them out directly
to people at the next possible opportunity.

Mistake #7: They spend a significant amount of time in
low-return activities (as measured by dollars and personal
satisfaction). If you are spending the majority of your day
completing tasks which are administrative in nature and/or which
can be easily completed by other people you are reducing your
profitability.

Solution: Track your time and figure out how much you're making
per hour. Hire an assistant if you are spending the bulk of your
time in administrative work.

Mistake #8: They charge less than they desire. This challenge
seems to arise especially for consultants, coaches and solo
entrepreneurs who sell services. It is often tempting to accept
less money than you need - so you get "some money" rather than
" no money". After time, working for too little can leave you
exhausted and resentful and it takes a deep cut out of your
profitability.

Solution: Commit that, at the next opportunity, you will ask for
full fee. And then do it.

Mistake #9: They make infrequent or no use of technology which
could save them time and effort. As a business owner, you have a
fixed amount of time and energy within which you must maximize
your profits. Technology can help you do this in the form of
autoresponders, voicemail, wireless internet connections, speech
recognition software and the like. All of these tools are
designed to save you time and effort. If you are not making
consistent use of technology in your business you are likely not
as profitable as you could be.

Solution: Look for ways that you can make your business
processes more efficient by using inexpensive technology.

Mistake #10: They adhere to outdated business models or plans.
If you do not stay up with the trends in your business you will
notice a steady decline in your profitability.

Solution: Attend meetings and conferences that will keep you on
target with your market. Implement new means of doing business
and update your business plan at least every couple of years.

If you are serious about improving your business' profitability,
start by implementing the suggested solutions to these ten
common mistakes. Together, these solutions will help you make
more money and have more fun in your business. Try them and see.

(c) 2004 Dr. Rachna D. Jain. All rights in all media reserved.

Dr. Rachna D. Jain is a sales and marketing coach, author,
consultant and speaker. Sign up for her free email newsletter,
" Sales & Marketing Secrets"
sams-subscribe@salesandmarketingcoach.com
< mailto:sams-subscribe@salesandmarketingcoach.com> To learn more
or to contact Dr. Jain directly, please visit
http://www.SalesandMarketingCoach.com.

About the author:
Dr. Rachna D. Jain is a sales and marketing coach, author,
consultant and speaker. Sign up for her free email newsletter,
" Sales & Marketing Secrets"
sams-subscribe@salesandmarketingcoach.com
< mailto:sams-subscribe@salesandmarketingcoach.com> To learn more
or to contact Dr. Jain directly, please visit
http://www.SalesandMarketingCoach.com.

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