Running a business is a risk. You need to undergo careful planning and research to make your business successful. However, mistakes along the way are inevitable. These mistakes may make your business stronger or on the worst note, fail.
According to Ormsby Street, four out of ten small businesses don’t survive after five years. Researchers note that the main problem is poor cash flow. To make your business thrive in the industry, here are 8 common mistakes that you should avoid in running a business:
Not setting realistic goals
Every entrepreneur has goals for their business. The end goal is the success, more profit, and more income. However, some first-timers are jumping into huge goals. They oversee the attainable and realistic goals. As a newcomer in the business industry, make sure that you aim little by little. These little goals will have a macro-effect towards the achievement of your big goal.
Thinking so much of costs
It is normal to spend money in running a business, especially during startup. No one starts a business with just a little money. Overthinking about the costs will be damaging to your business. Instead, think of ways on how to make up for those costs by improving your business, your products, and services.
Another mistake that most first-timers commit is that they deny the existence of “competitors”. Competitors are always present. They may be kilometers away from you but they still matter. Always identify the competition within the community and spend time determining their strengths and weaknesses so you can improve your business as well.
Ignoring the power of marketing
Marketing is very powerful. Without marketing, your business will remain unknown to the people. During a startup, it is very important to invest in marketing. There are many ways on how to promote your business. In this digital age, it very recommendable to go for internet marketing strategies. It costs less and is very effective in reaching a wide audience.
Not hiring adequate people
Most first-timers are afraid of costs. That’s why they believe that they can do it all alone. Wrong! You are just decreasing the productivity and efficiency of your business. Do not be afraid to hire people that are essentially needed in your business.
Too afraid to take risks
“What if I lose money in doing this?” What if this will fail?” These are few of the many “what ifs” that inhibits entrepreneurs from taking risks for their business. If you have performed extra research and careful planning, then do not be afraid to take risks. Starting a business is generally scary, but being scared of failure will just lead you to more failure.
Not valuing customers
Your customers are the heart of the business. Without them, your business won’t grow, won’t be recognized, and will remain unknown in the market. It is very important that you take care of your customers more than your business, employees, and your products. One of the best ways to show your love and care for your customers is by simply being responsive to their immediate concerns and feedbacks.
As an experienced entrepreneur, have you committed one of these mistakes? Share us your thoughts.