Having your own business would always be a good thing. The truth is that many business owners at different intervals are prone to making mistakes.
There are many mistakes small business owners make that are akin to stepping on the banana peel. As a result they come crashing down.
That is why materials like this are made available to you, to reduce your exposure to these mistakes. Some of which can be very costly to your business.
StatisticBrain, a widely cited statistic, reports that over 71% of startups die out or churn within 10 years.
10 Costly Mistakes Many Small Business Owners Make
The following are some of the mistakes ruining many small businesses as we speak.
This is one of the most important issues to address, there are nearly 2b websites (and counting) worldwide with over 3.5b Internet users,1.79b of whom are projected to shop online to the tune of $2.842tr in 2018.
With xennials, millennials, including some Gen Z acquiring more spending power by the hour, companies that do not have a website are missing out. I cannot stress it enough that you are leaving a lot at the table. If you did have a website not only will new people learn more about your business, you can sell your products or services online, people can book appointment with you online.The benefits are too much for you to lose this opportunity.
To Expand your business, you do need a website, and we can build one for you at an affordable price click here to get more information.
SPENDING TOO MUCH ON ADVERTS
advert is key in business yet many people make the mistake of paying too much on advert that they hardly even break even after covering expenses. The trick for a startup is getting to know each customer’s needs and trying to satisfy them. Referrals are more valuable than paid adverts for business start ups.
Thinking You Can Do It All
it’s alright to think you are smart, in fact it is essential to be smart but never assume you can do it all. Don’t hesitate to seek the help of experts in any area in which you need help. If you need the service of a lawyer, get one, if it’s that of a broker, get one. Don’t accept every responsibility when setting out.
Little or No Commitment
This is another area many small business owners make a mistake. The fact that it’s not a large business does not mean it should be left to sort itself out. How much time and energy you commit to your business is how much result it would yield.
After choosing the business that’s best for you; be single-minded, give it your commitment, be patient and work tirelessly. It would eventually pay off.
Taking Unfavorable Loans
Some others after listening to motivational talks are inspired to try entrepreneurship, again with little to no requisite industry knowledge.
This could lead to desperate borrowing from family and friends and even sourcing of funds via loans with extremely unfavorable repayment conditions like exorbitant interest rates and very short tenure.
Such business experiments with borrowed monies hardly end well.
Poor/No Understanding of Customer Journey
Customers are the lifeblood of any business enterprise. If you do not fully understand your typical customer’s path to purchase, you’ll be unable to design an effective sales funnel.
With proper understanding of customer journey however, you’re better able to create a user experience or customer experience that fully engages your customer at every touch point, resulting in ideal customer satisfaction.
Not Knowing Your Customers
Knowing your customer comes with a lot of benefits. You get to know their likes, dislikes, preferences, location, age group, maybe spending power and other essential demographics information.
This can help you better personalize your products or services which can lead to higher patronage and increased loyalty.
Ignoring the Call of Mobile Commerce
Mobile commerce is both big and still growing in leaps and bounds. Globally, smartphone sales for instance, has been on the increase y-o-y.
As more people use mobile phones more and more of them will
conduct business or shopping related activity via phone. Don’t drive them away with your lack of mobile readiness.
No Social Media Presence
Social Media should form part of your core marketing strategy. There are billions of people on social media every day, every week and every month.
Ignoring them will be missing out on a lot. Reports say over 65 million businesses are on Facebook or own a Facebook Page.
It’s the digital age, don’t be left out.
Expecting Quick results
A typical business takes about 2 years to mature which is a major issue for some business owners who do not have patience, would like to yield results.
You have to understand that patients is the key.
Business mistakes can be costly. Learning how to identify and mitigate them is a worthy investment of time and effort. Every smart business owner should take note of these business mistakes and take steps to prevent them.