Despite the many difficulties your small businesses may face – such as fierce competition, budget constraints and sourcing quality team members – size can also work to its advantage.

The theory goes that by offering a specialised service to a relatively small clientele, small to medium-sized enterprises (SMEs) are able to deliver a higher level of service than their larger competitors. However, a number of small business owners undermine their own business by maintaining certain attitudes and habits that neutralise the benefits their enterprise could otherwise offer.

According to Mayumi Mendoza, from home business online magazine PowerHomeBiz.com, many potentially successful SMEs are kept from succeeding because their owners adhere to attitudes that are ultimately self-defeating. “Many small business owners make the grievous mistake of setting up roadblocks between them and their customers,” says Mendoza. “While they may offer great products, they unknowingly sabotage their businesses with poor customer service and failure to make it easy for people to deal with them.” In her analysis of the problems small business owners can face, Mendoza identifies five common pitfalls that can undermine your company’s operations.

First, says Mendoza, some SME proprietors have a tendency to think that, because they have complete control over their business, they should run it according to their goals alone. However, Mendoza warns that such a mindset can spell disaster for a small company. “This is the anti-customer thinking that should be purged from the minds of every entrepreneur,” warns Mendoza. She adds that the focus should remain on a business’ product or service, and not the personality behind it. “Customers do not patronise your business to pay homage to you and what you have produced and accomplished. Rather, they buy your product or service because it fulfills their needs.”

Next, the ability to stand your ground is vital to your business’ success, according to Mendoza, who says that being able to say ‘no’ is a vital protective mechanism. For example, she says, “if you follow your customer’s request without determining the impact to your bottom line and overall financial health of your business, you might find yourself in the throes of bankruptcy.”

Linked to this obstacle is the problem of inflexibility. Instead of seeing the opportunity for feedback and growth, Mendoza says that many entrepreneurs have a fixed vision for their enterprise – to their detriment. “These entrepreneurs see these suggestions as a nuisance at best, even interference. What they fail to realise is that these suggestions can be a golden opportunity for their businesses.

“Fail this basic business principle and their business will close faster than they can say to their customers ‘Wait!’” Just as damaging to a small business is too much emphasis on its size. While small businesses may need to take a little more precaution than larger firms on the basis of narrower profit margins, this shouldn’t be an excuse not to seek out opportunities for growth.

Risk-taking, especially for small companies, is a crucial ingredient for entrepreneurial success, says Mendoza. “You will not know if you can get financing if you don’t apply for it,” she says. “You will not know how putting up a website can contribute to your bottom line if you don’t create it.”

And, finally, any prosperous SME depends on a proactive, even aggressive, attitude. Says Mendoza: “Your attitude will spell the difference between your success and your failure.” Another piece of advice can be added to Mendoza’s perspective.

According to business coach, Leo Reilly, the ability to negotiate is also central to successful entrepreneurship. “Informed negotiators tend to bargain from a position of strength, make better deals, fewer mistakes and maintain more positive relationships,” Reilly says. “They are therefore able to negotiate more competitive deals because they know what market conditions are.”

Once again, a positive attitude is essential, Reilly emphasises. “This approach not only causes the other side to lower their shield and put their sword on the table, but it also conveys an attitude of self-confidence on your part.”

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