5 Dumb Decisions That Hurt SMBs

small business

Owning a business comes with a lot of responsibility. As a small business owner, you know there are important decisions to make when running a company. That’s why you’re cautious. With the right information, you can avoid many of the foolish outcomes that end up hurting other companies.

Here are five dumb decisions that hurt small- to medium-sized businesses.

  1. Not Taking Other Ideas into Consideration

I hear this one a lot. Another big-shot entrepreneur starts a seemingly great company. The only problem is his huge ego. And he won’t let anyone else make decisions for the business. If you think you know it all, you’re just wrong. It’s impossible for one person to know what’s best for every possible facet of the business. One of the worst things you can do for your small business is to get caught up in an ego-centric mindset. So, assemble a team who has experience, and you’ll have the benefit of everyone’s input.

  1. Foregoing Business Insurance

This one’s not tricky. Unfortunately, some business leaders think they’ll save money by foregoing business insurance. Let me tell you right now: That’s not a wise move! Even though you’d be paying less each month, the risk you’re taking is way too costly.

Make sure your small business has coverage in case disaster hits one day. You don’t want to be empty-handed in the face of a natural disaster, injury of an employee, theft, or the like. You can compare business insurance online to see what’s out there based on your company’s needs.

  1. Cutting Employee Benefits

A major mistake you shouldn’t make when running a small business is cutting employee benefits. You’re cutting costs, sure, but what are you losing when you don’t prioritize your employees? Actually, a lot. If people who work for you don’t feel cared for, they probably won’t care much about your business.

So, what do you do when revenue falls? Be careful about the message you send to customers and employees. They don’t want to board a sinking ship. Focus your efforts on where you can add value for your existing and future customers.

  1. Not Prioritizing Sales

Although you want to make sure your business is nuanced and you’re doing meaningful work, you have to remember that ultimately, you’re running a business. And businesses sell. And sales are everything. Without them, the company will go crashing into the ground. Make sure you can get people to pay you for your ideas before you spend time trying to build a business around it.

  1. Not Trusting Your Instincts

Ignoring your gut is usually a big mistake. Although it takes time in the business world to really develop a seasoned and impactful intuition, we tend to know when someone or something is bad for the company. The structure of business today requires entrepreneurs to identify three areas of decision making: customers, employees, and investors.

Your gut instinct develops a pretty good feel for how these areas will respond. So, listen to it. If it’s telling you to do a background check on someone because you don’t trust them fully, do it. Ignoring your instincts can lead to missed opportunities.

There you have it. Here are five dumb decisions entrepreneurs make when owning a small business. If you want your business to succeed, please don’t make these mistakes. Remember not to be self-serving, trust your instincts, prioritize sales, get insurance, and consider your employees.

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