Have you ever asked why millions of new businesses shut down the same year they were started? There are many answers to this question. Costly mistakes made by the CEOs of these companies or business are the main causes. But the truth remains that mistakes are bound to occur. But the failure to spot them and take corrections is what kills these businesses. There is no successful business today that had never had a hard time. The main difference between these successful businesses and the failed ones is that the Entrepreneurs that direct them are ever ready to take corrections once they make mistakes. I have taken time to spot these deadly business mistakes and how to correct them.
Costly Mistakes Young Entrepreneurs Make and their Solutions
Choosing the Wrong Business Niche
A business niche is a particular line of business specializing on providing goods or services for a particular group of consumers. A niche can be a wrong one for a particular entrepreneur and also be the best niche for another. Failure to spot a business niche that you have enough know-how skills and knowledge can kill your new business quickly.
Spotting a suiting business niche needs special attention. Never go into a business line because your neighbour or friend is doing well in that line. You may not have the skills and talent he or she has. Also, be careful when choosing niches that the product is seasonal. This might frustrate you when those peak sales months are over. You can add some related seasonal products to your store when their seasons draw near. Do you wish to start an online business? Brian Edmondson explained some tips to help you pick a profitable online niche.
- 7 Features that Distinguish Real Entrepreneurs from Job Seekers
- 12 Best Lucrative Agricultural Business Ideas – Beginners Guide
Starting with a Very Wide Focus from the Onset
Nothing kills a business faster than this! No successful entrepreneur started with all the products and services they are currently offering. Not even Jeff Bezos, the CEO of Amazon. Amazon started as a bookstore, with time, he incorporated other products. This strategy helped him master each aspect of his store. Even Mark Zuckerberg did not incorporate Facebook ad from the onset.
There are also rules to help you successfully expand your business. The rule is, “Always add related products”. For example, if you started a ladies suits store for ladies and wish to expand in future, start by adding some other types of ladies wears. Then with time, you can extend to men’s wear or children’s wear.
Another tip to help you start with the right focus in business is a good business plan. It will give you direction and also tell you when to expand your business and how to go about it. Never start any business without a good business plan.
Looking for the Perfect Time to Start the Business
The hard truth is that, there is no perfect time to start any business. You only succeed in business when you have the mindset that there will be challenges and are eager to face them when they come. This does not mean you should not first have the full skills and knowledge required to run that business. My point is, don’t wait for when you will have all the favourable atmosphere before you can start the business. Such a time will never come!
- 12 Best Ways to Raise Funds & Save Money for Young Businesses
- 10 Best and Worst Countries to Start a Business in the World
Neglecting Customers Complaints
Customers are the reason why you are starting your business. They will also determine how long your business will last. That is why you should never for any reason neglect them. Customer’s complaints help you improve your business. Neglecting customer’s complaints is another way of giving your competitors more customers. I have given you reasons why you should value your customers.
Maltreating their Employees
The state of mind of your employees determines to a large extent the success of your business. This is because a worker can only put in his or her best in a place of work there is peace of mind. The way you treat your employees is the same way they will treat your customers. That is why most successful entrepreneurs encourage their customers from time to time. Develop this habit of being at peace with your workers. Don’t treat them like trash and still expect them help your business grow.
An employee can go extra miles to promote his place of work only if he or she is treated fine.Never form the habit of scolding your workers in front of customers. Even though some customers take delight in such acts, it kills the morale of your workers, whoa are the engine of your business.
- 125 Inspiring Business Quotes & Advice from Successful Entrepreneurs
- How to Resize a Picture in PC without any Third Party Software
Forgetting that Competitors Exist
Total negligence of competitors in any business is the first step to the failure of that business. Being aware that you have competitors will help you treat your customers and workers right. It does not mean you should be snaring at them.
There is a term called, “Healthy Competition”, which helps every business owner to know the parts of their businesses that needs to be amended. For example, if you have competitor selling rendering almost all the services your business renders, healthy competition will help you note the area your competitors are having lapses. It might be poor customer relationship. Take advantage of their business weakness. This will keep you on top of top of them.
Paying Little Attention to Advertising
Nobody will ever know your business exists, unless you tell them. That is why business promotion and advertisement is very crucial. There are various forms of adverts, like online and offline. Discover the form of adverts that helps to convert more audience to customers for you. For example, the 2 main forms of online adverts are through google AdWords and Social media. Social media is mainly for audience engagement. But if you have a direct product you are selling online, you can convert more audience to buyers through google Adwords campaign.
Always try to convert your immediate customers before extending your advert strategies. For example, if you have an offline shop, first concentrate on offline adverts before extending to online adverts. The reverse is the case if you have an online store. There are many ways to utilize social media adverts.
Failing to Update their Skills
Customers’ taste change with time. Also, technology also makes some skills to look obsolete and almost useless. That is why you need to learn some recent skills in your business line if you want to succeed. For example, if you have a fashion and design shop, you will notice that due to the large volume of customer demands, you need an electric machine to meet up with demand. You simply learn how to use it and buy one. The same applies to other business fields.
Not Having a Business Role Model
A business role model is someone in your business who is ahead of you, who you admire the way he or she runs the business. Your role models can also be your competitors. But in this case, they is ahead of you. You follow their footstep and also look for a way to do things better than they do.
For example, if you area blogger in a particular niche, you need to look for some other top bloggers whose site are ranking high. Take note of the way they do some stuffs and then follow them up. You might also spot their lapses and make them right, because nobody is perfect.
- 5 Types of Blog Contents That Rank High & Drive Huge Traffic
- 5 Basic Office Software Tools for Managers, Data Analysts & Accountants
These are some business mistakes I once made. There are some other business mistakes that entrepreneurs make that Nicole Martins Ferreira revealed. Do you have some other business mistakes you made in the past? Feel free to share them in the comment section. It might help someone else. Enjoy!