7 small business mistakes to avoid
Why does my business lose money?
What am I doing wrong?
Many new businesses and start ups are suffering from mistakes they could have avoided if they properly planned for their new business. Starting a new business isn’t easy and there are common mistakes that may negatively impact any new startup.
1. Poor Planning or None at all!
Planning may be boring and it seems to take a lot of time, so some businesses create a poor plan or skip planning altogether.
Without a solid plan for your business that includes research, market analysis, potential customers, marketing and financial plans… you will be conducting business like someone who is driving on a dark road.
2. Under-price your products
Some entrepreneurs think that if they under-price their product, they will get more customers.
Most of the customers link price and quality of your product or service, and they are willing to buy more expensive items because of better quality. Recovering from under-pricing your products is hard and will take a long time.
You should be careful with the pricing process, and be sure to determine your price after extensive studies on the marketplace, competition, manufacturing cost and quality of the product.
3. Not using Technology
Technology solutions save time, money and also make your work more efficient. An example is invoicing software instead of old paper invoices. This also can help the environment.
New technology could take some time to learn and understand, but not using technological solutions can (and will) hurt your business sooner or later.
There are many forms of marketing, from word of mouth or traditional advertising to e-marketing. When it comes to marketing, there are no rules to determine the best marketing type or channel for you. It all depends on your business and who you target. Assuming you don’t need any marketing and that customers will come to you will only lead to failure.
5. Who is your Customer?
You have to know who your customer is, and which marketing channel can get you to them; this is the most vital part of your marketing campaign. Ads aren’t enough these days, so you have to do some market research to know where is your customer is and how they will react to your products.
6. Trying to Do It All Alone
You can’t do it all. You may have talent, but if you try to do all of your business’ tasks alone, the outcome will be poor and it will hurt your business.
Your job is to identify your talents and work on them. Hire people who are strong in areas where your talents are the weakest.
To start a business, you have to have a desire to see your idea become reality, but making your business work takes commitment, so you will have to sacrifice some money, time, energy and emotions.
Don’t be afraid of making mistakes as it is a natural process to learn new things and develop yourself and your business.