Starting a small business is easier than it’s ever been before, and more and more people are doing it as every year passes. But, that doesn’t mean that it’s easy or that all of these people are doing it well. Nowadays, it’s entirely possible to start a business from home, using the internet to find customers, market your products, sell and communicate. Because it’s easier, people jump in. They start up, filled with passion, enthusiasm and a desire to prove themselves.
Then, within a few months, the cracks start to show and unfortunately, a lot of small businesses don’t make it. Many of these failed or struggling businesses make the same mistakes. Let’s take a look at some of the things that small business owners are doing wrong, to help you to avoid the same pitfalls as you seek to start and grow your own business. If your business is already struggling, you can read tips at https://www.exponentialprograms.com/business/blog/tips-to-keep-your-business-afloat-when-times-get-tough/.
Failing to Make a Plan
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Just because you can jump in with barely more than a website and an idea, doesn’t mean that you should. Once you’ve decided to start your own business, you should spend a lot of time planning before you actually get started. Research your ideas, to make sure you know your product or service inside and out. Look at your direct competition, and find out as much as you can about their services, marketing campaigns and products. Research the market, and the economy. Spend as long as you need to, learning as much as you can, and you’ll give yourself a fantastic head start.
During this time it’s also worth compiling a business plan, a long-range plan, a financial forecast, and a marketing plan. Having these plans in place doesn’t just help you to start on the right foot, they’ll also help you to stay on track as you move forward with your business.
Trying to Do Everything Themselves
Many small business owners today try to go it alone, or with a very small team. They try to learn how to do everything for themselves to cut costs in those early days. While this does have some advantages, like ensuring that you have a firm understanding of all areas of your work, you need to admit that you need help and that you aren’t that good at everything. Or you can’t give your business the support that it needs, and you’ll burn yourself out trying.
If you need manufacturing staff but can’t afford it, offshoring can be a great option. But, this does come with its own risks, which you can read about at https://fullscale.io/top-offshore-development-risks-your-company-should-avoid/. If you’re not ready to employ more than a few team members, you can also outsource small projects, like web design, to freelancers and other small firms.
Employing the Wrong Staff
So, we’ve agreed that you need help. Hiring permanent staff can be a great option, but recruitment is something of a minefield. Don’t just collect CVs and employ the first person that you like the look of. Take the time to interview and even trial team members, until you find the person or people with the right experience, knowledge and even personality that will fit in and bring something new to your company. Rushing recruitment and hiring the wrong people can do more harm than good.
Setting Unattainable Targets
Having targets as you start your business is fantastic. It can help you to stay on track, keep you motivated on those hard days and give you something to strive for. There’s nothing wrong with having big targets and aiming high either. But, it’s also crucial that you set small, more achievable objectives.
Just having big goals can be demotivating. It can feel as though you’re not getting anywhere when your goals are still so far away despite all of your hard work. This can be terrible for staff morale, and won’t help to keep you on track.
Adding some small, more achievable targets, that you hit regularly, can keep you going. It can be a big boost to staff morale and your own confidence, and it can make you feel as though your hard work is paying off.
Expanding Too Quickly
So many new businesses have initial success and decide that it’s time to expand. Sometimes, this works well. But not often. Growing too quickly can lead to overspending and a dilution of your market.
Instead, focus on one area at a time. Wait until your success is sustained, before you even consider expanding, and then, do it slowly.
Not Researching Their Target Market
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Most products and services appeal to a specific audience. You might get some customers from different demographics, but most of your customers will come from the same group.
Failing to research your target market means that you can’t give them what they want. You don’t know where they are, so you overspend in time and money, by having to market to everyone, and you can feel lost. Researching your target market thoroughly can make everything much easier.
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