Being successful as an entrepreneur requires you to be mindful of your hindrances and mistakes. Why? So you can get rid of them as quickly as possible. Like the saying “To err is human,” risk and errors are almost synonymous with new businesses. Yet, some mistakes may turn deadly for budding businesses. One wrong turn, and down the ditch, you go!
Given the current economic situation caused by the COVID-19 pandemic, small businesses are more prone to going bankrupt. Hence, this is not the time to play around!
Unfortunately, there are no cheat codes to succeed as a business owner. However, there are many common (and dumb) mistakes startups make that bring negative consequences for their businesses. Here are some of those mistakes and why you should avoid them as you gear up for success.
Sleeping On A Solid Plan
Let’s be honest; planning is a dreary task that most of us want to avoid. But, it would help if you have a well-structured business plan, including your product’s market potential and business idea research, so you’re not shooting without aim. For instance, a good plan must consist of an overall business plan, a 360-degree marketing plan, and a financial plan.
Being Ignorant Of The Customer
Identifying your target customers is a crucial part of a successful marketing campaign. Creating a marketing budget and trying out different strategies is essential, but there’s more to it. Startup owners should also explore the market to classify their target customers, the ways to reach them, and their responsiveness to marketing endeavors.
Also, don’t rely too much on your intuition and always consider your customer’s demands and preferences. Then adjust your business strategy accordingly.
Not Embracing Technology
Technology can open the way to countless opportunities for startups, save expenses, and lead to greater operational efficiency. Indeed, technological advances can be daunting, and one needs time and effort to get around them. Even online education is now incorporating the technological aspects of business, like this mba technology management, and enabling entrepreneurs to tackle a tech-driven market.
Yet, if you’re hell-bent on not adapting to new technology, your business can take a critical hit. So, for both short-term and long-term business prosperity, embrace and exploit technology to your startup’s advantage.
Selling Yourself Too Short
Often, young entrepreneurs let the fear of failure hold them back from realizing their true business potential. Coupled with a lack of faith in their abilities, they start to under-price their services and products. This combination is lethal not only because it undermines an individual’s uniqueness but also because it leads to future resentment.
Undervaluing your goods can set you back before you even start, and it’s not easy to recover from such damage. For that reason, you need to conduct thorough market research before you start selling. Doing so will help you determine the best entry price for your offerings.
Being Not-So-SMART With Your Goals
Goals can help you set the wind in your business’ sail, guide your oars, and help you steer in the direction of success. SMART goals are an integral part of a business’s management process. Your goals are SMART if they follow this criterion: Specific, Measurable, Achievable, Realistic, and Time-bound. Developing such goals can help you determine your future business trajectory and provide specific steps required to stay on track, for instance, through day-to-day operations.
Being Afraid Of Commitment
What makes a successful entrepreneur? An assortment of several goal-oriented personality traits, including ambition, drive, and an unwavering commitment to the cause. Listen up, small business owners! If you want to lead a thriving business, you must be willing to sacrifice your time, resources and take all challenges by their horns.
Spending Like A Billionaire
Huge investments or seed money aren’t a pre-requisite for starting a new business. Still, some entrepreneurs feel obliged to dump their entire savings to purchase the highest-quality of everything. Don’t fall into this dumb trap, and do your research before making any significant purchases. You don’t need the best HR team, the latest business software, or the most efficient plant equipment. There’s no shortage of less costly and equally effective options available out there. Your future self will thank you if you make and stick to a budget in the present. Budgets are a fantastic idea to curtail overspending and unnecessary purchases.
Not Investing In Marketing
Marketing comes in various forms, such as print/TV advertising, person-to-person referrals, and social media marketing. Don’t be among those “smart” entrepreneurs who mistakenly suppose that their customers will come to them, and there’s no need for marketing. Since marketing doesn’t go by any set standards or rules, the best marketing is one centered around your business’ unique selling point and your clientele.
Plus, you can earn a significant return on investment by even meager spending on marketing, so consider marketing as an investment rather than an expense.
Being A Cheapskate
Another menace to a startup’s success is the owners who dread spending too much and lean towards under-spending. It’s not beneficial to anyone if you refuse to spend even a dime on your business expenses. Surely, one can build a business with low funds. However, there’s a thin line between curbing costs and haggard-ing your business with insufficient investment. Remember that restricted capital funds can limit your business’ growth and potential.
As an entrepreneur, it can be tempting to take on all business tasks by yourself and steer your ship. However, proper delegation is a crucial factor in determining a small business’s success and growth. Right from the beginning, start delegating different tasks to versatile teams and individuals so you can build a team of talented employees as you move forward. Plus, charging the right jobs to the right people can increase your business’s productivity.
Being an entrepreneur is definitely not a walk in a park. There are so many considerations involved and so much to learn about. If you’re not careful, these things can overwhelm you, resulting in decisions that may destroy your budding startup. Making mistakes is inevitable in business. What’s important here is recognizing them and proactively working on them to make better business choices in the future.
We went over some common entrepreneurial mistakes in the above text, including fierce independence, under-spending, over-spending, ignoring the customer, and a lack of commitment.
If you can avoid these mistakes and be resilient in your approach, success will be knocking on your door in no time!