Starting your own business is exciting, but the challenges that you face with each passing day may de-motivate you in the beginning. However, if you stay determined and dedicated to your business then you will surely achieve success. Most of us make mistakes and we should try to gain experience and learn from our mistake. Listed below are some of the common mistakes that small business owners commit. However, by avoiding these mistakes you are surely going to make your business a successful one:
- Not researching and planning well: Before starting any business, it is extremely important to have a workable business plan. If you do not plan well, then you will end up running into crisis. You must always set realistic goals and try to achieve them in the first year itself. The satisfaction of accomplishing an objective will motivate you further in your business.
Moreover, if you are planning to take loans for financing your business idea then ensure that you research well. There will be several loan programs available in the market that can provide funds on a low rate of interest. So, poor research can cost you a huge loss of money.
- Underestimating others: You may have a unique business plan, but you should never underestimate your competitors. They certainly have a lot more experience and knowledge than you. Also, there will be many people having the same business ideas like you, so you certainly are not the only one in the entire market. Remember, competitors have always been a threat to businesses! So, do not ignore them, and try to market your business in such a way that it comes in par with the competitors.
- Not marketing properly: Before you even venture your business, you should think of numerous unique ways to market your products to the target customers. There is a tough competition out there and you need to make your product or service stand apart from others. So, you should advertise your company well by using several marketing techniques. Don’t just stick to a single marketing technique!
With the advancement of the Internet, you should market your products on several Social Media sites. Also, post numerous articles on websites with a link to your business. You need to even advertise your company locally so that everyone around you is aware of the products or services that you offer for sale. If a business does not get noticed, then it will not achieve success. So, to get noticed by everyone, you have to spend money on advertising and promoting your company.
- Don’t work for money: In the beginning, your main aim should be to make your products popular and build reputation in the market. None of the new entrepreneurs start earning profits from day one. Most of the business owners incur losses and they gain experience from them. So, don’t be under an impression that your business will start earning profits instantly. You need to put in a lot of efforts, time, and dedication to have a successful business. Once your business achieves success, money will automatically start pouring in.
- No planned budget: Always plan well to use your capital in the best possible way. If you have not decided about the budget then you won’t be able to manage your business well. You need to keep an account of the expenditures from the first day itself. Moreover, invest wisely in your business by purchasing good quality products that are available for a low price. Always plan a budget and stick to it! This will provide a long-term benefit for your company.
- Failure to identify a target market: You cannot target each and every person for your business. You need to research well and focus only on a specific target market. If you aim at the market as a whole, then you will end up wasting a lot of funds on advertising as it will not deliver positive returns on your investment. After you have identified your primary market, you need to advertise your company in such a way that it appeals to what your potential customers needs. Spend a lot of time in knowing about the needs and requirements of your customers. This will enable you to advertise and market your product in the right manner; thus, attracting loads of customers.
- Not bothering about your customers: You should always take into account your customer’s point of view. Is your product really benefitting your customer? A person will only purchase a product or use a service if they are aware of its benefits. Moreover, you should also be available on chat or through email to solve the queries of your customers. Try to reply back promptly, politely, and accurately!
Moreover, don’t focus only on making new customers. You should not forget your previous or existing customers. These customers have the potential to become repeat customers. So, keep in touch with them through email, SMS, or in any other method that suits them. A happy customer will also help in building your reputation as they will recommend your products to their family and friends through word of mouth.
- Lack of emergency cash: Nobody knows how the business is going to be tomorrow. You should always be prepared for the good and the bad. When you are generating profits in the business, make sure that you keep aside a considerable amount of money as emergency cash reserve. These funds can come handy at times of losses. If you neglect this important aspect of business, then you will not be able to grow your company. You may end up borrowing money from others, which is another mistake. It is always better to stay out of debt in a business. So, ensure that you use the emergency funds and let your business run smoothly even during a crisis.
- Do not mix personal and business expenses: It is one of the worst financial mistakes that small business owners commit. If you mix personal expenses and business expenses then you will find difficulty in balancing accounts during the tax season. A lot of time will be wasted in separating your expenses, and it will be tough to track the profits or losses that the business made. So, make sure that you do not mix them up.
- Don’t hire too quickly: A new business needs a lot of time to settle in the market and make the first profit. You need to put in a lot of efforts in the beginning, till your business settles. Hiring employees is easy, but do you know their job duties? Before you start hiring, you need to do their work so that you know how to accomplish their tasks and the difficulties that they will face. Once you are confident about the entire work, you can then start hiring others. In this way, you can guide them well and be assured that your employees will meet your expectations.
Source : quotesgram
These were some important mistakes that every small business owner should avoid. These mistakes may hamper your business in a long run. However, if you do make some mistakes, then don’t worry! We all make mistakes! The key to success lies in learning from your mistakes and not repeating the same mistakes.