Landing on this page, I assume that you are about to start your own busniness and is seeking some guidance to become more effective. Don’t worry because lots of businessmen have felt and done exactly the same move you are doing right now. Gaining enough knowledge from the experiences of others can be really helpful as you go along on your own path. On this page, we offer you 10 common mistakes which most business start-ups experience. Knowing this information can help you manage the risks you are about to cross.
Skipping the Planning Phase
Planning might be a boring or a draining activity, but, it is quite necessary in business organizations to take this activity seriously. It can either push the business to the heights of its success or it pulls them down. A solid plan gives you enough outlooks in your business path as it includes firm analysis with your business idea and market potential. This activity comprises of different steps that are highly significant such as business plan, financial plan and marketing plan. All of these three different but interrelated steps give you a solid foundation in your business journey.
Not Setting Goals
Setting your goals gives you direction and drive in your whole business journey. Every activity inside the business organization, may it be during the starting phase or its day-to-day operations, is guided by the goals set forth during the planning phase of the business. Today’s successful businessmen say that they owe their success in outlining SMART goals from their starting phase up to its day-to-day operations. This means that goals set should be specific, measurable, attainable, relevant and time-based (SMART).
Undervaluing Your Product
The lack of confidence in our ability and the fear of failing are the most common factors that drive out incompetency and frustration in any business organization. It causes us to undermine the unique value of our products and services which will eventually lead to under-pricing our crafts. That is why, as businessmen, we need to explore the market thoroughly as we start our business so we could identify the best market price of the products we are about to sell.
Avoiding New Technology
Some businessmen fail or limit its growth potential simply because they fail in exploring new opportunities. Investing in a new technology can be one of them. Most of today’s technological advancements can help us work more efficiently and are cost saving. It may require time to learn and understand and might be intimidating for some, but an unwillingness to embrace new opportunities can eventually hurt your business either short- or long-term. Therefore, it is better to adapt with technological advancements as early as the start-up phase to boost your efficiency and effectiveness in your business operations.
Less Effort in Marketing
Marketing is a wide-spread activity and can be in many forms ranging from word of mouth referrals to internet marketing. Actually, there is no definite rule in marketing your products and services because the best type of marketing depends on the type of business you choose to partake and the target market you wish to do business with. However, assuming you don’t need to market your product and that business will come to you naturally is the most common misstake.
Not Knowing your Target Market
A great marketing campaign should be grounded in understanding who your ideal customer is. Therefore, it is not enough to just create a marketing budget and try anything under the sun. Trying a little bit of everything can be very costly and can hurt the overall financial status of the whole organization. Thus, doing a market research to identify who, how and where you can reach your target market is highly essential in this field.
Overspending
The mentality where business owners need to allocate a large amount of investment in the start-up phase is never a necessity. You don’t have to spend a lot just to purchase the best of everything such as marketing help, equipment and software to be able to compete in the market. There are other options which are less expensive but equally viable as long as you do in-depth research. Sticking to the allocated budget can be an excellent way in curbing the possibility of overspending.
Under-spending
As overspending hurts the business’ overall standing, under-spending can hurt the business too! Some small business owners refuse to spend much of anything. As it limits the funds to be used in business operations, it, too, limits the business’ potential to grow and prosper.
Doing it All Alone
As a small business owner, you might be very willing to learn everything and become a jack of all trades. Believe me, it doesn’t have to be that way if you are aiming for the bigger picture in the near future. Effective delegation can be a great opportunity for small business owners to have some free time for business activities that require their expertise and position a team which they can use for future success.
Doesn’t Take Commitment Seriously
Starting a business requires a lot of sacrifices – time, money and effort! It also needs a lot of drive, dedication and commitment that, amidst of challenges and failure, one can pick himself up to start over. Committing mistakes in decision making can be a part of every success stories. But, if you can remain to be resilient amidst all challenges that come your way, success will be within your reach.
