The 7 Deadliest Financial Mistakes Self Employed Make Coming Out of Recession

For many of my self employed clients, the sales cycle is already on an upswing.  Recovery recession has turned from a deep desire to a slow spiral of reality.  Now comes regroup, refocus and rebuild.  As you build plans for the rest of this year and into next, avoid these deadly financial mistakes that may kill your business during the next recession.  Yes, there will be a next recession; they’re a normal.

Waiting for the All Clear Signal – If you are waiting for headlines that say unemployment is falling, home sales are booming, and sales exceed expectations, you’ll be too late.

Focusing Solely on Debt – You have friends whose business lines of credit have been frozen and others just killed by debt.  Your own debt may be frightening.  As your income increases, don’t make debt reduction your only priority.  Build a stash cash for the next recession, even if you have to start small.

Forgetting Lessons Learned – Now is a great time to make a list of smart things we wish we’d done: saved more, put more away for retirement, researched more before spending, retaining marginal employees.  What did you wish you’d done?  Now don’t forget.

Old Thinking – No, we will not go back to the easy credit, easy sales, and easy growth of 2003 through 2007.  Just like the Great Depression, people’s buying habits have changed for a generation. You’ll need new sales techniques, new marketing techniques, and new customer service methods if you want to be a winner over this next expansion.

Competing on Price – Yes, most of us think Berks County buyers only care about price.  If that’s true, why is Wal-Mart not the only store in town?  Focus on value above price.

Ignoring Your Best employees – Many small businesses reduced employee work-week to save money.  In many cases, the work load didn’t decrease so employees took work home or even came into the office without pay.  If it’s too soon to put these best team player employees back on full pay, find some other way to show you value them. Otherwise, you risk them finding another job later this year.

No Plan for Next Recession – Hopefully we’ll have three or four years before another economic downturn.  Come up with a plan for getting ready.  What did you wish you’d done differently five years ago that would have made you weather this last recession better.  Then do that.

They say that which doesn’t kill us makes us stronger.  So here’s to the newly strong, self employed getting a whole lot stronger.

Now stop reading about The 7 Deadliest Financial Mistakes and start doing! Let’s create your personal profit strategies for growing profit. Call small business profitability coach Merra Lee Moffitt, CFP®. She can be reached at, 888-920-2030 or by email at merralee@captureprofits.com.

This entry was posted on Tuesday, April 27th, 2010 at 3:27 pm and is filed under Business Owner Mindset, Increase Sales. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.

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