Few people are lucky enough to succeed in their business endeavors in the first go. For most budding entrepreneurs, the path to riches is rather tedious and time-consuming. However, that is not to say that running a business has to be a challenge. If you make the right decisions at the right times, then you can greatly reduce the effort and time required to make your startup a money-churning enterprise.
The following are 10 common mistakes that new business owners make these days:
Spending Little Time on Planning
A business comprises several moving parts. So, taking the planning phase lightly can prove to be quite costly. If you want to build a strong foundation for your company, then it’s important that you take your time and get all aspects of launching a business right.
Using Old Technologies
Today, tech is making business development easier than ever. That’s exactly the reason why there is a huge demand for online solutions for SMEs, whether we talk about marketing or sales, accounting or human resources.
Here is the thing- traditional business concepts like paper invoices, cold calling, attendance management systems, etc. are expensive and inefficient. On the other hand, we have a slew of online tools and technologies like cloud-based business suites, accounting software, CRM solutions, etc. that are faster and cheaper. So, the quicker you make the switch, the faster you can achieve your business goals.
It doesn’t matter what kind of business you run, you are bound to face some level of competition for sure. However, you can stand out and emerge as a serious contender in the market by elevating your business and building a brand instead. Don’t be alarmed by the idea- building a brand has become affordable and easy today, thanks to tools like Tailor Brands which is an AI-powered logo designer that can be used to create high-quality and 100% original logos in a matter of minutes. You can use tools like this to build a powerful brand without breaking the bank.
Spending Too Much, Too Fast
If you have raised tons of money for your business, which has actually become a lot easier through crowdfunding sites like GoFundMe and Kickstarter, then you may feel inclined to spend a good chunk on it in the initial phase. However, it’s better to ignore that itch, at least when you are new in the industry. This is because you save to keep some money in reserves for unexpected expenses like sudden big orders, additional human resources, office/factory upgrades/repairs, etc. that may emerge in the future.
Not Having a Professional Website
If you think that for online presence, you can do fine with just a Facebook page or Instagram account, then you are wrong. If you want to present yourself as a professional company, then you need a professional website, preferably with a format along the lines of www.YourCompanyName.com. Make sure that you pick an appropriate theme, use only high-quality images, and get the content written by a professional. Believe it or not, stock or generic photos and poor-quality content that’s riddled with grammatical mistakes can turn away potential customers easily when they visit your website.
Picking the Wrong Team
Putting together the perfect dream team for a business isn’t easy. When you are excited to launch your business, you may rush through the hiring process and appoint some people that you would otherwise not want on your side. If and when that happens, you can face risks like data theft, fraud, etc. So, hire a small team if you can’t afford a lot of time and/or money, but make sure that the limited number of people that you hire are best at what they do and also understand your goals and expectations.
Ignoring the Competition
Are you focusing too much on your own business and your line of products? If your answer is yes, then you risk running into a failure from which recovery might not be possible.
It doesn’t matter how successful your business is, you should always keep a close eye on your rivals. You can maintain or even improve your market position by doing this as you can see what kind of new products and services others are offering and what can you do to offer a better version of them. You can also stay up to date with the pricing and market trends this way, both of which are incredibly important.
Going Cheap on Marketing
The businesses of today’s era have a wide range of marketing options at their disposal. For instance, there is social media and blogging, both of which are affordable and easy to implement. However, they aren’t exactly free if you want results fast. For instance, you want to run ads on social media platforms, and publish guest posts on popular blogs, both of which cost money. So, it’s unwise to completely skimp on the spending. Experts recommend that you take a target marketing budget of 10% to 20% of your gross revenue, and as your business grows, you can drop it to just 5% of the revenue.
Failing to Connect Emotionally
So many businesses try to sound too corporate-like and formal, and in the process, they fail to connect with the target demographic on an emotional level. What you really need is to leverage the art of storytelling and evoke emotions in your customers through inspiring videos and blog posts. You want to show the world that you might be a business in the game for making money, but you do care for the people and understand what they need.
Overpromising and Underdelivering
Are you promising something too much that you may not deliver it? If that’s the case, then you can end up losing the entire business. After all, how can you expect your audience to believe in you and your products when you are over-hyping everything?
Maintaining steady business growth can be challenging for a large number of entrepreneurs. However, if you do your homework and take decisions based on concrete data, then you can avert the majority of risks. Good luck!