5 Common Mistakes That Keep Small Business Owners Overworked and Underpaid

In the challenging journey of small business ownership, common pitfalls like not delegating enough, poor time management, underpricing services, unclear marketing, and neglecting financial management often keep hardworking entrepreneurs overworked and underpaid.

These fundamental mistakes not only drain resources but also hinder the growth and sustainability of the business.

Here’s how to identify and rectify these five key areas, setting your path straight towards a more prosperous and balanced entrepreneurial future.

Not Delegating Enough

When you first open your business, you’re often left doing every job and every task. You wear all the hats. As the business grows, too often we hang onto the little meticulous tasks that occupy a lot of our brain space. Business owners need to be spending their time and effort on higher valued tasks – tasks that grow the business, specifically. This includes roles like sales and marketing.

Instead, make hires for the low-valued tasks, and delegate with clear systems and procedures that will enable that staff member to take initiative and complete their job with ease. This way, you as the owner can spend your time investing into sales and marketing, and work hard to continue growing the business.

Poor Time Management

It’s hard to think about growing your business when you’re spending most of your time working IN the business. It’s a vicious cycle to get caught in: You open and close the doors at the start and end of the day, you’re doing everything at all times, and you work every single day. There’s no time to finish drinking your coffee, never mind think about working ON the business.

We teach our clients at Perfect Day Business Mentorship a strategy to build out their CEO Blocks. This helps them create space in their day that is directly dedicated to growing their business.

Underpricing Services

On top of working all the time in your business, pouring salt on the wound is having too low priced services. You’re working all the time, and in turn, not having a lot to show for it at the end of the day. Worse yet, your business is not profitable because there isn’t enough funds to allocate to keep the business running efficiently, so you can’t even think about paying yourself at all.

The main reason businesses close is not actually due to a lack of money. Small businesses close because the owner runs out of steam. They work all day, everyday, and have nothing to reward themselves with at the end of the day. That cycle can only repeat itself for a length of time before the business owner gives in and stops running on the hamster wheel.

Clarifying your offer down to the one thing you do really well, and pricing it to align with what you as the business owner need to bring home is the best strategy to employ. Don’t price your services based on what you think your customers will pay, or what Joe down the street is offering his for. Our PDBM Mentors work with our clients to determine what they need, and build backwards from there.

Unclear Marketing

If you’re a Jack of All Trades offering every service under the sun, it’s going to be really hard to narrow down your marketing message. You’re essentially casting a fishing line out into the ocean, and hoping you pull something in.

Instead, if you simplify your offer, you can clarify your marketing message. This enables you to speak directly to the type of audience you are wanting to serve, and will more likely resonate with them. The more an audience feels that you’re talking directly to them, the more likely they are to click on your link, or walk through your doors to utilize your services. Clarity is everything when it comes to marketing, but you need a simplified offer to market, also.

Neglecting Financial Management

Many small business owners don’t pay themselves because they feel there isn’t enough money left over for themselves. After all the expenses are paid, the staff are taken care of, funds are reinvested, only then do they start to think about themselves and what they need. They’re taking from the pot last.

If an airplane was experiencing a problem and only ONE air mask dropped down, who would be the best person on that plane to give the air mask to? The pilot. They are the only one who can control and steer the plane. This is you, as the business owner.

Pay yourself first, pay your taxes second, and then allocate the rest of the funds to the expenses, staff, and whatever else is needing your financial attention. This will ensure you’re always seeing the fruits of your labour.

These are the 5 main places that small business owners need to focus to make sure they can earn more and work less in their business. Yet, they’re the most overlooked and incorrectly executed. Our PDBM Mentors work closely with our clients to set them up for success, so they can earn more and work less in their business. Book a FREE Discovery Call with our team here.

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