8 Common Mistakes Small Businesses Makeand How to Avoid ThemBy Guest Post The odds are stacked against new businesses. According to recent fgures published by the SBA, half of new businesses will be forced to shut their doors within fve years, and two-thirds of them will close within a decade.hile there are numerous factors at play that small business owners don!tnecessarily have much control over, they do have control of how they manage their operations. There are eight common managerial problems that and most importantly, tips on how to avoid making them"Mistake #1: Thinking success will come overnight.#reat cities and structures, and even successful companies, were not built overnight$ they all re%uired hard work, perseverance, or as &hurchill famously said, 'blood, sweat and tears.( hile an entrepreneur might havea great vision and %uality products consumers want, there can!t be an e)pectation of a huge payday immediately upon launching a business*it is a slow and steady build.+nstead, be realistic and set a timeline that measures small attainable goals and successes. ,ocus and commitment, e)ecuted on an enduring level, will ultimately deliver success.Mistake #2: Focusing on too many different things at once.Small business owners obviously have a lot on their plates. #enerally speaking, they depend upon themselves-and those they employ-for their living. &onse%uently, it!s not uncommon for new businesses to overe)tend themselves in an attempt to get slices from as many markets as possible. .ore products, more profts, right/,ocusing on too many different products or services can derail a business, draining signifcant manpower and resources along the way. hat!s more, it could result in taking the strongest products for granted, something thatcan cause regret later on as competitors take note.To avoid this problem, direct the ma0ority of focus on core competencies-as counterintuitive as it might seem to a business that wishes to grow. Set some time aside to plan for the future, but don!t branch out or diversify too %uickly. .aintaining an enduring, laser focus is critical.Mistake #3: Refusing to delegate tasks.Similarly, many small business owners feel the need to take care of everything themselves. But 0ust because 1lon .usk claims to work 233-hour weeks doesn!t mean all entrepreneurs need to do the same. And know this" he has great teams in place to help advance his vision.4emember, there!s a reason why companies hire employees" they have a 0ob to do. So don!t be afraid to delegate appropriate tasksto appropriate people. 5therwise, there is a risk of becoming unable to direct the proper level of attention on the task at hand, rendering a business incapable of reaching its full potential.,or those running a one-man operation, remember that it!s okay to say no from time to time. +t!s better to do e)tremely well at a few things, than deliver mediocrity on a lot of things.Mistake #: !iring the wrong kind of "eo"le.+t!s nearly impossible to have a 6awless track record when it comes to hiring, so it!s inevitable that at least some of the people you hire simply won!t work out. 7aving the right people in place is critical for the success of any company, and it!s even more critical for small businesses, &onversely, hiring the wrong person for a business can be 0ust as important and can set your company up for failure.+n order to increase the chances of retaining the best talent, be aware of The 7alo 1ffect " a common pitfall wherein a hiring manager lets a few traits he or she likes about a candidate create a false halo that prevents them from assessing if the candidate is best for the 0ob or simply acing the interview process.henever possible, try to involve multiple people during the hiring process in order to gain a variety of perspectives on 0ob candidates. 8astly,don!t be afraid to ask tough %uestions during interviews. 9ot only should an entrepreneur have to listen to a recap of a candidate!s recent, hopefullyrelevant work, but understand how this person works, how he or she may handle adversity, overcome challenges, and add true value to the company.Mistake ##: Failing to define the market and know the customers.An entrepreneur might think a particular product or service is the best idea-and maybe it is. But without knowing the target audience and which other companies are also focusing on them, it will be signifcantly harder to sell the idea. +f a business!s market isn!t clearly defned, it is nearly impossible to hone in on how to best position the product or service in a way that is compelling.&omprehensive market research is imperative in identifying robust customer personas prior to launching a business. By knowing whom to target and how to effectively communicate with them, a business will be strongly poised to successfully thrive and grow.Mistake #$: Misunderstanding the im"ortance of having cash.Today!s businesses need access to capital in order to remain nimble and better compete in today!s fast moving markets. ithout growth capital, companies are unable to respond to new opportunities, pay their own bills, and otherwise grow their business.:nfortunately, many new small business owners underestimate the importance of maintaining positive cash 6ow. This lack of proper planning and forecasting leaves them with their hands tied when they frst reali;e their predicament.To avoid dealing with cash 6ow problems , consider starting regular cash 6ow forecasting and statement preparation-all it re%uires is a little bit of time.Beyond that, you can make sure to promptly invoice clients and offer themdiscounts when they pay their bills early, or use an invoice-clearing servicethat advances payments on outstanding invoices. Additionally, ree)amine how much inventory is being held at any given time$ and and really pinpoint what the organi;ation will accomplish, and by when. 5nce the vision is defned, it!ll be easier to rally the team.Mistake #': Minimi(ing the im"ortance of work)life *alance.+f staff members are unhealthy, they won!t be able to produce-it!s as simple as that. hile small business owners might be tempted to work around the clock and encourage their employees to do the same, studies have repeatedly shown that healthier employees are more productive than their tired, overworked counterparts..any of today!s workers want to be able to balance their professional lives with their personal ones. Thanks to the +nternet, cloud computing, and mobile devices, work-life balanceis easier to achieve than ever before-so long as businesses are on board.Small business owners need to be cogni;ant of the fact that today!s top talent is often allured by 6e)ible working arrangements. So long as they do their 0obs well, does it really matter where or when they work/ By simply offering your employees the ability to work 6e)ibly-i.e., work fromhome, on the road or in the offce, whichever they prefer-you!re likely to see your employee retention statistics improve, making your company that much stronger.+f a business isn!t conducive to 6e)ible working arrangements =e.g., a retail shop>, consider giving employees the option to work four 23-hour days instead of fve ?-hour days, for e)ample. Better yet, ask employees directly what would help them improve their work-life balance and work with them to make it happen.4ecogni;ing these common mistakes and understanding how to avoid them is critical for small business owners. +t is often hard for entrepreneurs to take a step back and evaluate past decisions that may not be working properly$ however, it is crucial for the success of a businessto understand that these managerial problems can have an enormous impact on the health of the business.