How to Avoid These 5 Worst Business Mistakes
Written by Marianna Martirosyan
29 March 2018
Starting a business is a hard but rather a promising beginning. When thinking about launching a startup there’s a lot to fuss over starting from financial resources to geolocation of your company. You should be ready to put all your time and effort into creating your business from the very scratch. Nonetheless, business is not about the complex decisions and tasks! If you carefully allocate your resources, approach your work with diligence and care, your business will surely bear the fruit! To keep you safe from failure and disappointment both while launching and operating the business, we are going to talk about the worst business mistakes you should avoid.
1.Starting without a business plan
Many entrepreneurs underestimate the importance of a business plan at the very beginning of their way.
They decide to start a business pretty spontaneously: no deep competitor research, no estimations on sales and profits, no weighing the costs, nothing. Sorry to say, but this is a terrible mistake that will turn your business into a dead loss. To keep away from this, you must have a strict business plan before getting into something. You must weigh all the pros and cons of your idea, all the possible outputs and touchpoints you must consider when interacting with your clients, competitors and other third party participants.
Business plans and further marketing strategies are pivotal for a business conceptus summed up right. A clear vision that identifies your target audience, your short term and long term goals and perspectives will surely be of a great benefit for you.
2. Surrounding yourself with the wrong people
After you have set up you business, it’s time to take a closer around: who are you surrounded with? Many businesses face operational difficulties because of the “wrong people” that are involved in it. But who are these “wrong people”? These may be employees that lack qualification, employees that are resistant to changes, ones that have personal difficulties communicating with the others, and finally those, who have a weak sense of responsibility.
But this circle of “wrong” people doesn’t end here. Disagreements among co-founders of the business, different departmental heads and influential people may pose another serious threat to the business. If these people don’t believe in the ideas and success of your business, they won’t try to lead you, thus they will be more of an obstacle on your way to success. And finally your third party affiliates, suppliers or any other external actors may be of no good to your business if not wisely chosen.
To avoid facing this kind of negative experience you should either have strong interpersonal skills and ability to choose the right people with whom you’ll be able to go hand in hand, or hire a qualified HR personnel to take task this of your shoulders.
3. There is no perfect moment
There is never a perfect moment to start a business or do whatever you do, but as a startup initiator you shouldn’t waste time wondering when it comes.
I’m talking about the ability to take risks, many of them. Throughout your whole entrepreneurship, you should understand that the grass on the competitors side will always seem greener, their revenues will always seem higher and so on. Many businesses fail because they wait until the “perfect” moment to launch a new product or make a new announcement. Eventually they get beaten by competitors who don’t wait and confidently move forward towards the goal set. You have to always keep your finger on the pulse of your business, keep up with trends and the overall buzz around.
To avoid being left out of your own business, take risks and make it happen today. Show your competitors that your guns are always loaded!
4. Overlooking your competition
This is yet another extreme of the iceberg of business failures.
Some entrepreneurs get blinded by their success and start underestimating their competitors. Always remember that the moment you lose the sight of your businesses competitors you get kicked away from the field. Think of a game of chess. Even if you are somewhat ahead of your competitors, try to guess their next possible step, and make something even bigger. Don’t think that your success is everlasting, as everything may turn upside down in a blink of an eye, such is the life of a businessman. Be alert and prudent not to lose the progress you have attained on account of a mere caprice of your ego.
5. Ignoring Online Marketing
Well, I think that you should have realized by now, that ignoring online marketing may cost you your business, not more not less!
Online marketing is a life-changing technological advancement which is the main driving force of today's marketing as a whole. Missing this important point and omitting it from your marketing plan may crush your business badly. Moreover, nowadays there are dozens of channels through which you may arrange your digital marketing, so the type and channel you choose depends on what you basically do, so make sure to make right choices.
Today, all the profitable businesses have a website, as this is an essential “business card”, your ticket to a larger scale of society . However, today there are tons of other online channels that can serve as a tool for online marketing. These may vary from social media like Facebook or Instagram to Q&A sites like Quora, which is by the way another effective marketing tool that currently grows and gains popularity at a high rate. Not to come hell or high water, just do a deep research on what are the most effective online marketing channels for particularly your company and establish a bold online presence through a good website. This will surely take you where you want your business to be.
Winston Churchill once said: “Success is not final, failure is not fatal: it is the courage to continue that counts.”
Long story short, failure is an indivisible component of any business’ success. However, there are some mistakes that can be avoided.
Firstly, in order to lose less time and resources, a company must have a clear business plan that will include all the necessary information regarding the business, its estimated figures of cash inflows and outflows and many other aspects.
Second thing you should do to avoid failure is to surround yourself with right people. Try to exclude ones that don't believe in aspiration and goals of your business.
Up next, remember that there is no perfect moment to do something. To always be the leader you should be the “buzz maker”, not the “buzz-taker”.
Fourth important thing you should keep in mind is that your competitors are as vigilant and alert as you are, so never-ever overlook the competition, otherwise you’ll be soon left out of it.
And finally, never underestimate the power of online marketing, because this is the latest step-up of new generation marketing. Find the most suitable channels through which you’ll best reach your audience and implement digital marketing as a secret weapon.
So make the most out of these hints and try to avoid all these mistakes for a more untroubled and smooth way up!