Businesspersons from all realms are always looking for new avenues of growth and innovative measures to reinvigorate their businesses. This always guarantees them to stay ahead of the competition in their respective industries.
However, as most businesses begin to grow, some factors, if not taken care of, often lead to its closure
TMZ.co.ke looks at five bad business habits likely to cost your business:
Not protecting 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 get access to crucial company details and trade secrets.
Large organizations are fortunate to have an IT department to guard their data, but small and medium sized organizations can also enforce certain measures to ensure their data is secure.
Security features such as a two factor verification authentication system, use of firewalls, installing latest updates for the operating system, backing up regularly, using secure Wi-Fi networks while also controlling physical access to the database are among the steps recommended for startups.
Failing to delegate projects
Some small business owners cling to every task, with the belief that the activities are better dealt with by them. This often leads to the business struggling due to the loads of work that will amount 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 handle the work. This allows the owner to concentrate on the management duties effectively. Also, they can follow up with the workers to ensure accountability.
Not keeping track of inventory
Properly managing inventory in a business ensures that a business maintains its cash flow.
Lack of it often leads to either acquiring excess goods, prompting a negative number on the cash flow statement, or running out of stock which curbs the business from keeping up with the demand on the product.
Being able to track your data will ensure the growth of a business. Furthermore, using an inventory control system that captures data and tracks custom solutions is also key for businesses that handle large data.
Having a realistic and clear plan when setting up a business is a huge factor in the success of the business. However, most businesses fail if they don’t adapt to the changing times.
Factors such as technology, customer behaviour, competition changes often, hence prompts a business to continuously revise their strategies in order to stay in the upper echelon of the industry.
Poor money management
This bad habit accounts for a large share of businessmen and women who tend to engage on purchases that had not been listed on the budget.
Most likely, they fall prey to impulse buying and at the end of the month they cannot account for every coin spent.
This type of habit, mostly common among the youth, 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 through with the plan.
Furthermore, with the inclusion of debt in the business and the trajectory could be on a downward slope. It’s advisable to list down all expenses, identify ones that can be removed from the list or be reduced and track your daily spending to ensure you’re in line with your plan.