There is no doubt that small businesses are an important part of any economy and entrepreneurs constitute a large majority of employers. However, before you start the journey of entrepreneurship, there are certain common mistakes that cause business failure and that you should be wary of.
First on the list is poor business research. This is a major reason why many new small business owners overestimate the size of their potential market and then face some nasty surprises when they actually start their business. Second is the lack of a good business plan. Many entrepreneurs head into a new segment with a paper napkin plan and the fantasy that their ingenious idea is definitely going to earn them millions. In reality, that doesn’t happen – at least not unless you have a comprehensive business plan.
Always remember, you cannot do everything on your own. A common mistake that entrepreneurs make is trying to do everything on their own. There is no harm in acknowledging that you are not an expert in all areas and that you may require assistance in the following areas:
Bookkeeping – Managing and keeping financial records as well as finding suitable software programs for this purpose. Some may opt to hire a reliable and affordable accounting professional.
Marketing – Let’s be real. Each one of us is not a born marketer and a new business entrepreneur may find promoting and marketing the business a major challenge. They may require assistance with market research, analysis and with outlining strategies that would enable them to penetrate their target segment.
In this digital age, it is important to ensure you incorporate a digital marketing strategy and to create, manage and protect your online reputation. According to James Timothy White, a small business expert, “your business world is influenced by how well you plan and execute your advertising campaign because marketing and advertising is what really creates your business image and is one that must be planned well and should be well-budgeted,”
Operations – While the new business may be small, there are still some core operations that need to be done right. Small business entrepreneurs need to implement scalable solutions for their business operations.
Business Plan – Nothing can be done without a proper plan and the same is true for a new business. An effective business plan will integrate the business idea and will determine its viability and growth prospects as well as the possible challenges the business may face with its competitors.
Business Development – Setting up a business is not the end all and be all for a new entrepreneur. In fact, it is business development that requires attention in the long-run. It requires innovation and optimizing creative and unique ways in which your business can flourish. Managing costs, improving efficiency, ensuring quality products and/or service are some of the key elements that need to be managed.
Networking – You can’t set up shop in a deserted island. It will most likely not work. Most businesses benefit from networking since it enables you to gain exposure as well as get your brand name out there. It will also help you get new ideas and implement new strategies when running your business.
Starting a business is a major opportunity but at the same time it brings with it several challenges. As long as you are prepared to meet those challenges, your chances of success increase to a large extent.