Businessmen from all walks of life are always looking for new avenues for growth and innovative measures to revitalize their activities. This always guarantees them to stay one step ahead of the competition in their respective industries.
However, as most businesses start to grow, certain factors, if not taken into account, often lead to its closure.
TBEN.co.ke takes a look at five bad business habits that can cost your business dearly:
A file image of a budget.
Do not protect your data
Data breaches are the norm of the day for most businesses that don’t take the time to secure their data. This leaves the business open to hackers who can easily gain access to crucial business details and trade secrets.
Large companies are fortunate to have an IT department to protect their data, but small and medium-sized businesses can also apply certain measures to ensure the security of their data.
Security features such as a two-factor authentication system, use of firewalls, installation of the latest operating system updates, regular backup, use of Wi-Fi networks secure while controlling physical access to the database are among the recommended steps for startups.
Do not delegate projects
Some small business owners cling to every task, with the belief that the business is best run by them. This often leads the business to struggle due to the workloads that will be required, especially when the business begins to grow.
Business owners are advised to take some of the work off their plate and delegate it to an employee best suited to do the work. This allows the owner to focus effectively on management tasks. In addition, they can follow up with workers to ensure accountability.
Do not track inventory
Good inventory management in a business ensures that the business maintains its cash flow.
Its shortage often results in either the acquisition of surplus goods, which results in a negative number on the cash flow statement, or a shortage of stock, which prevents the company from meeting the demand for the product.
Being able to track your data will ensure the growth of a business. In addition, using an inventory control system that captures data and tracks custom solutions is also essential for businesses that manage big data.
Having a realistic and clear plan when starting a business is a determining factor in the success of the business. However, most businesses fail if they don’t adapt to the changes.
Factors such as technology, customer behavior, competition change often, so cause a company to continually review its strategies in order to stay at the top tier of the industry.
Poor money management
This bad habit represents a significant portion of business men and women who tend to commit to purchases that were not budgeted for.
Most likely, they fall prey to impulse buys and at the end of the month they can’t account for every coin spent.
This type of habit, especially common among young people, can be detrimental at any stage of a business. Creating a monthly and weekly plan is a step in the right direction, but does not guarantee that the business owner will follow the plan.
Plus, with the inclusion of debt in the business and the trajectory could be on a downward slope. It is advisable to list all expenses, identify which ones can be removed from the list or be reduced, and track your daily expenses to make sure you are in line with your plan.
Technology changes over time.