6 Mistakes Every Small Business Must Avoid
Views expressed by Entrepreneur Collaborators are their own.
In fact, the intent to enter into entrepreneurship is different from one business owner to another. While some are driven by passion, others are motivated by the desire to leave their jobs for freedom to control their time and create their own path to success.
The purpose may be different, the goal is the same: every entrepreneur wants to succeed. However, not everyone does that: according to the Bureau of Labor Statistics, only 20% of small businesses do not pass their first year, while almost two-thirds continue for two years and half live for five years. .
Following the path of the entrepreneur is like entering the jungle because you have no idea what awaits you and what the future holds. But as technology advances, as we make business more flexible than traditional brick and mortar models, one thing is for sure: we will continue to grow in small businesses.
The role of income in small business DNA
Many factors lead to dusting before many companies set foot, but the most crucial of them is revenue. This, of course, is at the heart of every company – the fuel that drives every other part of the business.
There are many ways to earn revenue such as selling products or services, charging fees and generating advertising revenue. The funds generated allow for the payment of expenses such as rent, utilities and salaries. Additionally, proceeds can be used to reinvest in the business in the form of hiring new equipment or additional employees. This is also important because it determines profitability: a business that does not produce enough will eventually run out of business.
Related: The real failure rate of small businesses
Here are some key mistakes that can lead to insufficient income:
1. Do not set goals and objectives
Small businesses can easily fall into the trap of not knowing exactly what their goal is. Without it, it would be difficult to devise strategies that would lead to revenue.
Targeting is inevitable when any benefit is unknown and it applies to small entrepreneurial ventures. As long as goals and objectives are not defined, revenue-generating plans will eventually fall apart.
2. Inefficient marketing strategy
Marketing is the center of gravity of every business – the door and window that provides brand accessibility and visibility. It anchors everything as marketing leads to sales, but what happens when marketing is not implemented effectively?
Small businesses are more prone to this because they often do not boast of the financial viability of large operations. They may not even have the website and / or social media handles to run marketing and cannot afford to pay for the services of content marketers or influencers. These factors are powerful enough to significantly damage revenue.
3. Poor or lack of online visibility
Any business that does not have visibility will not have a chance to survive, because this world is optimally viable. The bigger the brand, the more it will be recognized by the target audience and with the constant influence and influence of social media, there are ample options to drive it. It can be in the form of text, videos, audio, images or any or all of these media.
4. Repeat not focusing on customers
This is a common mistake that most people make, but often do not know. While it is certainly attractive for new customers to come in through the door, it is important to focus on the existing ones. Repeat customers’ engine that promotes profitability because they have built trust in you and are happy to do business with you. Retaining them is also easy as you do not have to engage in marketing to convince them or get their attention, as you did with the new customer.
Related: If you can not execute your plans, solve these 6 problems
5. Failure to adopt advanced sales funnel system
As times change, customer behavior also changes and small businesses need to be aware of innovative trends to meet customer needs. Gone are the days when customers followed the sales funnel: with so many platforms on social media, social profiles and testimonials on the internet, potential clients could simply search for a product or service and continue to buy it. Those who are not smart enough to take advantage of such spaces will lose.
6. Not properly respecting pricing strategy
Price is a crucial factor in the decision making stages for any business, and not knowing how or when to adjust it can cause real damage. Factors such as demand and supply that affect price are definite, but a sudden increase is not well-liked by customers and they may appear elsewhere. When you do not adjust it properly, it can come at a huge cost.