Your confidence in business can make you successful like Mukesh Ambani but over confidence in business may show you a downfall in business just like Anil Ambani. So instead of committing mistakes in business again and again, learn from these mistakes so that they can be avoided in future. Learning from mistakes, improving them in business can help you move up in the ladder of success and also let you take the lead among your competitors.
So here are some common mistakes that businessmen do:
- Month to month survival– Instead of looking at month to month survival, a businessman should plan big and long term. Just looking at month to month survival may not give you desired results.
- Worrying about turnover instead of looking at the net profit– Some businessmen look merely at the turnover of their business whereas that does not give the right picture of the business. Our main business is not to see what lies dimly at a distance but to look at what we have in our hand. Your turnover is just like a cake of which one piece will be taken by your employees, one by EMIs, other by taxes, rentals etc. The remaining will be your profit. So don’t look at the entire cake and get happy. Look at its remaining part which is your actual net profit.
If you are not able to make profit, then there must be some mistake. Drop the attitude “I know everything”. Identify where you making a mistake and start working on it.
- Someday some miracle will yield extraordinary results– There are people who try to start a new business every 5-6 months and give up the earlier business. There are also some people who continue the same business for 10-15-20 years waiting for good results. Both kind of people need to think over again. It’s not good to give up so soon and it is also not worth to wait for so long because you usually get results within 3-4 years.
- Immediate increase in expenditure– Another mistake that people often make is that they increase their expenditure as soon as they start earning profits. If you want to live like a king then behave like a king but to adopt this, you must earn a handsome amount first.
- No separate current and savings account– It would be great if you have separate current account and savings account as you would be able to see clearly your earnings, your profit, your savings etc.
- Unnecessary debts– Not just that businessmen do too much expenditure with the small profit they get, they also take unnecessary debts on themselves. They should focus on their business first and other things should be done at a later stage.
- No substitute for business– A businessman must always keep a substitute for his business so that in tough times, he may get some passive income from his substitute business.
- No savings for lean time and emergencies– Titanic which was the biggest and the strongest ship at that time could save itself from a mere iceberg. Similarly, there may come a point in your life where you may have to face such a situation where your business may not support you economically. For such a situation, you must have something other than your passive income or your substitute business and that is your Savings.
- Hesitation in asking for payments– Another mistake is that businessmen sometimes hesitate in asking for their payment and as a result there is a delay in receiving the payments. Because of this, the profit gets even lesser. Just remember three things- 1) ask for payments as soon as possible, 2) do not call yourself for the payment or your executive should also not go and ask for it, 3) tele-callers in your office should make a call and ask for the payments.
- No defined budgets- Businessmen do not define their budgets, no proper accounts, lack of knowledge about what accountant is doing etc. The right way is to have a predefined budget if you are going to start something new or launching a new product or service. Clearly define the budget, the head, the supervisor, the team members, SOPs (System of Procedure) etc.
It’s not wrong to commit mistakes but the biggest mistake is not to accept them and not to learn from them. Do not be over confident that you cannot commit a mistake. Learn from your mistakes. Try to improve on them.
To know about the business course or public speaking course by Anurag Aggarwal, feel free to contact us at 7834-99-9292 or visit www.anuragaggarwal.com.