Common Small Technology Business Mistakes to Avoid

Things are starting to settle a bit in the economy. Some businesses did not or won’t make it through this year. Some will barely survive and others will be doing well and be poised to do even better in the next 6 months. Where do you fit in?

I can only hope that I can help you learn from the mistakes of others before they happen to you. If not, then at least you will have the ability to recognize certain problems before you end up learning the hard way.





Failing to Have Tracking Systems in Place-This includes not having procedures in place to keep track of time, work, income, expenditures, marketing, clients, assets, etc. Without this information, you can’t effectively operate a business causing wasted time and money on a regular basis.

Too much Tech, Not Enough Business- As you grow you need to move yourself to working more on the business than in it leaving the heavy tech work to the techs while you concentrate on operations and applying new technology offering to help your clients run and grow their businesses. Even if a one person show that intends to remain that way, you can’t have a real business without removing yourself from the tech work as much as possible. If not with employees then with joint venture partners utilizing your systems and processes to deliver the value your clients expect.

Not Making Good Hires- Taking a longer period of time to find and hire the right person for the job will have a much less negative impact on the company than hiring the wrong person for the job. This is why you should technically always be recruiting people to what I call a virtual bench. Joint Venture partners and potential employees that you know will fit your future needs make the difference when it comes time to pull the trigger. Looking when the need has already come upon you is what causes a scramble and diminishes your ability to properly vet out the best candidates for you.

Not Providing Proper Training, Regulations & Expectations-Having employees and contracted partners means spelling out exactly what is expected of them and had to do the job you are tasking them with. Be ready to provide any necessary training or risk a variety of future problems. Also, even with only 1 employee, you should have a handbook with employee policies & procedures.

Not Firing Problem Employees/Contracted Help Fast Enough-Have your HR processes in place and get rid of the problem employee/contractor as fast as you can while following policy and state/federal laws. Your headaches will go away quicker than you think.

Not Using Defined Contracts-In any business you should have clear contracts with your accountant, lawyer, banks, suppliers, landlord, etc. Without a doubt, this is necessary. It’s also important to have strict agreements with employees or contractors especially those working on a commission basis. And without a doubt, clear and concise agreements with your clients is a must, especially if performing any managed services.

Not Knowing YOUR Numbers for Pricing-This mistake is all too common and often involves using competitor pricing instead of your own cost factors. Every normal outflow of money & time needs to be recovered in your pricing especially when you are selling time and knowledge. Profit is then built into this number, which should be a factor of VALUE. If you have the value built into your business, there is no reason why a service that costs your business $500 to perform can’t be sold for $600, $700 or even $1000. Perceived value is the key and is the difference between those that say “I can’t charge that” and those that do.

Not Having a Means to an End-Having a prize and keeping your eye on that prize is the reason to be in any business. That means having an end goal of retiring, divesting (mergers) or outright selling your business no matter what business you’re in or how new or old it is. There is no way to make positive movements forward and actually know how you did it so it’s repeatable without having an ultimate goal with smaller goals in the middle to achieve that ultimate goal. Would you get into your car every day, start it up and drive without having a place to drive to? That’s equivalent to working your business every day with no end goal in mind. Building your business value to correlate with your means to an end goal is also how you maximize profitability now.


Being in business for yourself is not just about sales, or marketing or revenues. It’s about you profiting from providing valuable services for your clients, doing it in an organized and repeatable manner, and getting it done with the business working for you more than you working for it. Being an entrepreneur is a lifestyle and not a self made job.

Keep these simple tips in mind when running your business and you will see a much smoother and stable organization emerge.


To Your Business Success-

George Sierchio
The Consultant’s Coach