When running your business there are lots of potential traps you could fall into.
The Most common being:
Not managing costs and adjusting budgets
Failure to re-invest in the business.
Not invoicing on time and chasing up payments.
Ignoring your competitors both new and old.
Failing to understand your ideal target market.
Neglecting marketing when things are going well.
All the above can be very damaging and potentially fatal.
But there is one trap above all that too many businesses fall into!
It is the “ONE” trap!
We all start with just one customer, one supplier, one employee, one marketing pillar or one price.
However, as the business scales, having just one of anything can become a dangerous and costly trap.
Here are some real-life examples:
You own a themed restaurant and one of the key dishes is Goat curry. You buy the goat meat from one supplier. This supplier is a one-man operation, then they have and accident or fall ill or even go bust! Do you have a plan B? Do you have other pre-vetted suppliers that you can rely on in an emergency?
You run a business services company and your sales funnel is based solely on referrals from existing clients. It has served you well and you have grown this way. But the problem is you feel obliged to take on all work that is referred to you by your clients. Including some that are not profitable. You do not want to risk offending/losing them. Because you have been relying on client referrals, the referral pool has dried up. And you have neglected your website and your social media presence, growth has stalled, and profits have slumped.
You run a small cleaning business employing a team of self-employed workers. Your Operations Manager has been with you for 10 years and is responsible for half of the business including the management of contracts and portfolio of customers and cleaners, maintaining service levels, and contracts remain profitable. They recruit the workers, are great at their job and knows customers inside out. If they leave you will be in trouble as they are so critical to the business.
You own a shop fitting firm and 80% of your work comes from a major high street retailer. Due to difficult trading conditions, they cancel store openings and refits, and your sales pipeline has been neglected because you have been so busy with servicing your main client. So suddenly you only have 20% of your previous sales and no new prospects!