When starting a business, entrepreneurs and small business owners are quick to chase the profits instead of perfecting their products or services before penetrating their respective markets.
A lot of systems and logistics need to be set in place before one can fully offer a service to a client. No matter the type of industry you’re in, you need to avoid making mistakes that could cost you your business.
Let’s explore three of these mistakes and discuss ways to fix them:
1. Lack of market research
This is a big one. You cannot get into a market without researching it. Who are your buyers, what do they like, where are they buying a similar product or getting similar service, how much does it cost and is there a real need. You cannot provide a service that people are not looking for. Just because you like the product, doesn’t mean the market will receive it in the same manner. That’s why research is important.
Conduct thorough market research before launching, in order to understand your audience and competition.
Failing to thoroughly research and understand your target market’s needs, preferences, and competition can lead to a business idea that doesn’t resonate with customers.
2. Ignoring customer feedback
Most business owners make the mistake of thinking they know what their customers want and what’s best for them. This is incorrect because the products and services you provide are not for you, you need to actively seek and listen to customer feedback, and use it to improve your products or services.
A good founder knows that their main priority is to solve the problems of the customer. Building or growing a business based on customer feedback is key because it actually addresses the real needs of the people you are selling to. Which, at the end of the day, is what you want.
An advantage to customer feedback is that you can strengthen customer relationships, build trust and loyalty, and drive continuous improvement in your products, services, and overall customer experience.All this leads to customer retention, a recipe for business success!
3. Poor Financial Management
Money management and lack of financial education is a major factor in business failure. As soon as money comes into the business, entrepreneurs don’t know how to spread it evenly between their salary and putting it back into the business to help it grow.
Business money is business money and should not be used for personal reasons.
Understanding your numbers is also important because without these numbers at your fingertips you can’t make informed decisions; your forecasting and analysis are incomplete; and you may fail to act on potential opportunities.
Hire a skilled financial professional and implement a solid budgeting and financial planning strategy. If you cannot afford to get help, then create your own budgets and spreadsheets.
Write down every cent you are spending, see where it’s going and see where you can stretch it and get value for your buck.
