When people decide to start a small business, they do so with the idea to jump into an exciting venture that will bring them success and money, and eventually lead to a big expansion, so that they can contend with the big names.
However, the fact that might scare you is that, according to the research done by SBA Office of Advocacy done in 2017, about 1/5 of startups crumble during the first year of business, and about half of all organizations do the same in about 5 years.
So, if you look at the statistics, you will probably start to think that your chances of success could be pretty slim. However, while there are several factors that contribute to small business failure in the market, the truth is that the great majority of them makes very similar mistakes along the way. Therefore, we are going to discuss some of these mistakes and how to avoid them.
Starting Your Business for the Wrong Reasons
Quite often, the seed of a business’ downfall is in its very roots. Why is it that you really want to start a business?
- Is it because you want to make a lot of cash?
- Do you like being your own boss and not having to report to anyone else?
- Is your idea that if you owned a business of your own, you’d get more time to spend with your loved ones?
Sure, all these reasons sound good as benefits, but they are certainly not good enough for starting a business.
You have to be passionate and really care about what you want to do. You also have to have faith that your service or product is going to have a valuable spot on the market, because you have done proper research to know that.
You must also be determined and patient, and not easily give up. If sometimes you fail, you learn from your mistakes and keep pushing on. You want to bring something to the world that people will truly benefit from, and your independence gives you all the freedom to do so.
Not Being Unique and Providing Actual Value
While you might have an awesome product or service to offer, your business won’t flourish if your presentation is weak and you don’t have a solid value proposition. Think about what is it that could make you stand amongst your competition. Also, find ways to run your business which will give your brand character and make you really one-of-a-kind. You need to have a customized and personal approach, so that your value proposition truly sparks interest. Be original both in terms of voice and design.
Next to all of this, it would also be wise to take your marketing efforts to the next level by covering as many venues as you can. Being better than others is not enough if people don’t even know that you are there. So, as experts such as DW Advisory would suggest, you need to come up with a good business strategy. Also, you need to combine your online and offline efforts into a marketing strategy that will let everyone know who you are and what you’ve got on the table.
Being Out of Touch with Customer Needs
It isn’t uncommon for a company to focus so much on business strategies that they forget the importance of customer engagement and support. You need to always be in touch with them. That way you will not only understand what it is that they really need, but also build a strong relationship with them which will be rooted in trust.
Follow all the current trends and do your best to provide your customer base with the best possible experience that they can have with you. Surveys are a great way to discover what it is that your audience is interested in, as well as what you need to change in order to be what they expect from you.
So, being aware of the fact that quite a lot of businesses tend to fail due to certain mistakes that are actually pretty common, it is up to you to do your best to avoid them.
You need to start your business for the right reasons, or else, you better not bother because it will be a waste of resources and time. Make sure that your value proposition is strong and people can tell that your company is unique. Finally, make sure that you always engage with your customer base, listen to them and give them feedback. An amazing relationship with your customers is one of the essential aspects of a strong brand identity.