Small Business Owners / Entrepreneurs are prone to missteps, mishaps, and mistakes. No matter how experienced you are in handling a brand, you are bound to run into problems at some point. No matter what, it’s inescapable…
The key to success in Entrepreneurship is to quickly identify and be responsible for your mistakes, learn from them, and prevent the same mistakes from happening again. Most business owners fall into the same traps. The mistakes are there to make you learn. It’s those mistakes which could make the difference between owning a successful business, or owning a money pit that could leave you in financial pain for years to come.
There are numerous mistakes that makes new brands fold up. But we would be looking at some common ones you should strictly stay away from for a start
1. Trying to Get Rich Quick
Just so you know. If you start up your business with the aim of getting rich quickly, your business may end up folding up, and you still won’t get rich!
Business success usually takes 5 to 10 years and more to achieve. If you go into running a business expecting to get rich overnight, you may become discouraged early on and give up your dream prematurely.
Know that success takes time, like I always say, Nothing Good comes easy! perseverance! Patience! Tolerance! You must imbibe those qualities if you want to make it big. Give your business the time to grow. Only if your company is stagnant for a long time should you take it as an indication that you need to try something new.
2. Assuming You Have No Competition
It is very pertinent to have it at the back of your mind that there are people who do exactly the same thing you do.
Even if you are coming to the market with a strategy nobody else have ever adopted, don’t assume that you have no competition. Competition is more than other business counterparts. Competition is also all the available alternatives. What else could the consumer do instead of using your product or service? Could they do nothing? The customer almost always has the option of walking away. That alone is a serious competitive threat. Be prepared!
3. Setting Unrealistic Financial Goals
On the verge of you signing up to be an entrepreneur, you should note that you won’t win (profit) everyday. If all business plans came true, being a billionaire would be nothing extraordinary. Many entrepreneurs go into new business planning on huge profit returns. Yet most never even get the business off the ground. Unrealistic goals not only hurt your credibility, but can also be an emotional drain. Set specific, measurable, accountable, realistic, and time specific (or SMART) goals to ensure continual progress. If you do this, your chances of being an overnight success (in 5 to 10 years) are much greater!
4. Cutting Prices
It’s not Ego but at this point you should realize that not everyone can buy from you. Do away with that reasoning that Cheaper prices mean more customers. It is absolutely Wrong! Most customers are willing to buy more expensive items because of the greater quality or the added convenience. During tough economic times, like we found ourselves in Nigeria today, an increase in price, coupled with improvements in quality or convenience, can drive customers to your door. Price slashing is a dangerous game, which could lead to slashing employees or salaries to keep costs down.
5. Having No Clear Marketing Strategy
Most Entrepreneurs come into the market force unprepared. You never know where, when, or how a new prospect is going to hear of your business. If you have a mix of messages out there, the prospects will have an unclear expectation of what your business can offer. Your company must present a consistent, clear message on all fronts. You will never get a second chance to make a first impression. Make sure every new prospect who sees your business for the first time receives the same, consistent message.
6. Trying to Do It All
Along the line as your business begins to grow gradually, you need helping hands to help steer the affairs diligently. The greatest mistake entrepreneurs make is when they feel they can handle it all themselves. When he tries to do almost everything, he will end up with everything poorly. Just like any other person, an entrepreneur has one or two natural talents. As an entrepreneur, it is your job to identify those capabilities and focus on them to your fullest. Surround yourself with people who are strong where your talents are weakest. Great companies are built on the foundation of exploiting a few strengths, not on trying to be masters of everything.
7. Business Everyday and Night
Entrepreneurs put their personal lives on hold to focus only on their businesses. Ultimately, both suffer. There is no question your business needs your full attention and effort, but create a routine. Just like an elite athlete in training, you need to have a proper, healthy diet, get enough rest, and take breaks. Balance your personal and business life, and you will actually do better in both.
Take a moment to reflect: What mistake on this list do you most closely identify with? How can you take action today to backtrack or sidestep potentially painful results?
If you’re still in business, then it isn’t too late to correct a misstep. If you could use advice on whether there might be an issue in your business or how you can correct course, you’re welcome to reach out to us!