3 Ways to Avoid Costly Mistakes in Running Your Business

Mistakes Can Cost Money and Customers - 3 Tips for Avoiding Them.

We all make mistakes. Why? Simply because we are human. The better we are at avoiding mistakes, however, the less it will cost us in the long run. Money is one obvious cost. Credibility and customer confidence is the greater risk.

Sid Kemp, in his article "Learn From Your Mistakes," estimates that "continued incompetence costs our society billions of dollars a year." Yes, he said BILLIONS. What if we could reduce this cost, in both time and money resources, by not making them in the first place? 

To work toward that objective, consider these three ingredients: 
  1. Have a standard, preferably written, set of steps for delivering your product or service. This is called a process. If you follow your process, it is easier both for you, and anyone you hire, to deliver what is expected. 
  2. Know what your most costly step is. In other words, if that step gets flubbed, you will either lose money or lose a customer. Then, monitor that step like a hawk
  3. Have a predetermined way for handling problems and complaints. When the inevitable flub happens, know what you will do. 
    • Give your subordinates the power to act based upon that process. 
    • Minimize the inconvenience to your customer or client. Your response must make sense to them. (See this blog "You Don't Make Sense").

Mistakes can be learning opportunities, too. For a few thoughts on that, see this article by Sid Kemp, for Entrepreneur.com. Head mistakes off at the pass and most of the time you will get the results that both you and your customers expect. 

E-mail us if you would like help with defining or improving your processes.  

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