Here's an interesting idea: Do you realize that there are mistakes you can make at different stages of business growth that can kill you slowly over months or even years if they do not watch them?

Well, these errors exist and are not just reserved for companies rookie. Many companies involved, including those you might think are "successful" because they have been around for over 10 years, they still often do ... and the possibility of losing a lot of money and / or spend much time in the process.

Although some of these big mistakes and cunning seems more geared to the type of service companies that are not really suitable for almost any type of industry. I've done everything possible with the following list of examples to prove it.

The underestimation of project / Service Time-This is a great and terms of service companies and companies that sell a product. This is the bread of a service company and butter. If you do not estimate the time needed to service each and every one in his repertoire, which burn and not much we can do about it, but bite the bullet and learn from it. The best way to estimate the time it once you do it or look your best employee to the task and then throw in a little fudge factor on top of it. For product companies, time becomes a problem with logistics so be careful!

Without knowing your numbers Company / incorrect pricing-Note that emphasized the word "you". It's a common mistake to use a competitor as its price indicator, without really knowing why they use those numbers. Think of the nightmare that get into if you take the price of a competitor, cut by 10% and then start selling. What if the competition has a bad price structure and just make money, or even losing money? What if the costs are more than theirs? You can use the competition as a starting point but you can not base your entire strategy on it.

Different industries have their own variables for costs to go and need to be aware of them for your project or product prices. What you pay for a product that will sell is not the only cost you have in your head when pricing products. The amount of labor and material costs of a service is just a piece of an hourly rate. Employees costs rather than wages and not all employees is part of their labor costs. Each company has insurance to pay. There are tons of overhead that should be part of the price. Oh, by the way, bigger than many people forget their price is the quality factor. What is included as "standard services" or "standard product features" and workplace label or store service and all warranties to enter your price. I'll get over why in the next segment.

No charge for their time and costs-This seems like a stupid statement to some, but I bet most business owners admit they have given her a little too much of the farm at times. Hey, there's nothing wrong with giving a little here and there to show you care. But either way, that's not what I'm talking about here. What worries me are those that put a lot of quality in their work or products or shops and do not cover the cost of it. As an example, say you run a service company and its competitors do not do a certain service standard does. Can undermine not only its price to steal a job, you need to have the cost covered by the fare and advertising that comes with the price in advance. The shops are undermined, for example, when you put more people on the floor for customer service, but not billed. These things cost money and when their competitors do not cost them less money. Getting a better service and low prices, and competition just wait a bit to fall on your face so they can once back in.

As a business owner you need to believe that you are providing customers with worthwhile items that deserve to be paid. If you have the opportunity to explain why their prices are higher, and then use that opportunity and do it. If you do not like the fact that it includes things that others charge extra for later or that they are treated better, then most likely buyer is completely prices. You do not want regular customers anyway. Trust me.

Do not charge fast enough, so is the old problem of cash flow. As long as you are actually making enough money to pay the bills, this problem can be solved, prevent or at least made it not as bad as could be. Here's the deal:

First of all account customers very quickly. It is common for a small business that have no established procedures or systems for invoices generated and through the door at the right time (see next segment more). Again, this seems unlikely as that is the reason why we are doing the work to get paid. But it is very easy for officials to get this information to the billing people for being too busy to get an organization or do not have enough to give them the right way.

In the second part to the slowing down or stopping a crisis of regular cash flow to make offers fastest possible payment by customers and the slowest possible suppliers and employees. If there is any way to not pay employees more than twice a month, it is best to do so. Contractors always have a problem with this. If you have to pay every week, then tell them before they are hired to be getting the first week of braking, which is to buy a week. It will help, I promise.

The third part consists of credit. If your company can get a credit card, then I understand. This allows some important things you buy (which you can afford it) that may arise during a cash flow crisis. Better yet, especially if you have no choice but to deal with payments 45 days of the customers, do our best to obtain a credit line of the company. This is a must if you plan to sell to the government or commercial service work. These clients often have periods of 60 to 90 day waiting period.

The lack of robust systems and procedures-Too many procedures (known as the "red tape") is the reason why many people start their own business in the first place. Unfortunately, not having the procedures and systems in place at all is not an option. Depending on the type of industry, business owners must come to a middle or chaos and the unknown are derived. Some basic examples in the procedures or systems are required to include billing, collections, payroll, human resources (interviewing, hiring, vacation, benefits, job responsibilities, etc.), manufacturing, equipment operation, equipment maintenance, inventory, sales calls / visits and logistics to name a few.

Even a program of a single person has to have some management procedures in place. This will make it easier to hire temporary workers and subcontractors and monitoring what they are doing for you. Without at least a watered down version of a system or procedure to do the job every day, you will be guilty of causing many headaches as your business grows. I can not stress how important it is for when you bring new employees. I'm sure you've heard this before, but I'm also a big proponent of having an employee handbook, even for an employee. It's amazing how people can cause problems for business owners only because they allow you to pay them.

How to spend advertising money just to say that you advertise, I would almost rather see my clients not to advertise after spending regardless of the results follow. It makes sense in a marketing campaign if you do not put things in place that allow you to measure how well the plan is working. The other part useless marketing that many people make the mistake of doing it is not tracking their campaigns were successful. Why do some people think that just because a $ 400 dollar ad once per month worked very well for a season that will run automatically each year after it escapes me.