Issue link: http://psai.uberflip.com/i/717942
W EEKLY EDITION AUG 24, 2016 Common Mistakes Business Owners Make Based on an article by Patricia Lotich for Aabaco Small Business and adapted for the PSAI by Karleen Kos Small business owners wear many hats. While being a "jack of all trades" means they are intimately aware of all aspects of their business, it is common for owners to lack deep expertise in many of those areas. They can also be "too close" to things, at times lacking valuable perspective. Mistakes happen and important areas can be overlooked; this can threaten the long term viability of your business. So let's review some areas that can present unique challenges if they are neglected or ignored. 1. Unclear Purpose Every company must articulate why it exists and what it's striving to achieve. Owners must focus time and attention on developing a mission and vision. Yes, even portable sanitation companies need to be able to articulate why they exist and what they hope to achieve in the world. This should then be the anchor for all business decis ion making. 2. No Plan There is an old saying, "if you fail to plan, you plan to fail." Developing a strategy and having a plan to achieve objectives is critical to any company's success. Large or small, every business needs a plan. Devoting time, at leas t once a year, to reviewing your company's strategy and organizational goals helps to ensure the business is moving in the planned direction. If it isn't, the annual review gives you a chance to face facts and course - correct before things are beyond saving . 3. No Written Goals Goals are how businesses achieve objectives. First, the business must develop the goals by writing them down and assigning accountability to someone for achieving them. Use the old "SMART" format. Your goals should be s pecific, m eas urable, a chievable, r elevant, and t ime - limited. Without taking the time to write down what you plan to do, assign the work, and hold everyone accountable, it's difficult to achieve objectives. 4. No Budget It's not uncommon for small companies to operat e without a budget. The owner doesn't create a budget oftentimes because of the time investment in the process – or because they will laughingly say there's no point in having a budget when the company isn't yet making any money. Don't buy it. Without a bu dget – basically – a game plan for where you expect to get and spend your business' money, there's no way to ensure profitability or wise use of resources. By "wise" I don't just mean "thrifty." You have to invest in the business to grow it, and a budget p lan makes it possible to see how and where those investments will be possible – as well as how and where they will pay off. CONTINUED ON PAGE 4 P AGE 4