It takes heaps and leaps to start a business. There isn’t any full proof plan to reach success. There may be several matters on which you have to make a decision, so that you don’t make a wrong decision, here are several common business mistakes that can be dangerous for your business. Running a business is not like shooting fish in a barrel. You can’t let anyone kill the entrepreneur inside you.
So, as to safeguard your establishment avoid the following mistakes:-
Afraid to Fail
One of the biggest mistakes that you make is that you’re afraid of failure. Remember failure is the key to success. If you will be afraid before trying you won’t be able to succeed ever. There can’t be the same situation always and you can’t be right every time. Some of your decisions may fail. Mistakes can teach you a lot and from these lessons, you can do wonders.
Not analyzing the market
A common mistake made by many entrepreneurs is that they don’t spare time to understand about the market and their targeted audience. The products or services you offer are often for a certain customer and it is important to identify them. Without identifying and focusing on them you are making a blunder. If the trend of the market has changed and you have not updated yourself your sales would drop and would also lose customers.
Trying to do Everything by Yourself
You should not operate your business independently, thinking that you are all alone. You cannot perform every task by yourself and if you do so they won’t be up to the mark. Delegate your work to your subordinates. Don’t forget wisdom and power exists in a myriad of counsel.
Partnering with Wrong Investors
You should know each and every minute detail about your investors as they are more than just financial backers. Your investors can make your business reach new heights or can lead to the closure of your business permanently. As a piece of advice before partnering with investors do check their history, know their motive, financial position etc otherwise you can have locks on your business.
Hiring without Analyzing
By far the biggest mistake a business can make is hiring employees without analyzing the job specification, job description and number of employees required. If hired more or less number of employees than that would cause hindrance in the smooth working, and if a person is not suitable for that post he is a liability for the business. Another mistake made at the time of hiring is that hiring full-timers when for that job part-time employee or a subcontract made more sense. These mistakes would increase your operating cost and thereby reducing your profits.
Small scale businesses have a fragile financial position and over it handling money incorrectly is like a death sentence for your business. Hiring too many, incapable employees and making too many expenses on the decoration of your business etc are some of the ways by which good money is put into a bad use. Use your money vigilantly to avoid bankruptcy situations.
Pricing too high or low won’t let you gain market share. Many entrepreneurs start with offering free things, remember you don’t want to be known as a source of freebies rather you should be known for your product quality or services you offer. If you priced your product too low then it can be thought to be a cheap or low-quality product whereas if priced too high then many won’t be able to afford it and there are many competitors in the market. So, it is wise that you should use the right pricing strategy for your product or service and gain an advantage over your competitors.
Starting Without a Plan
Planning is a lengthy and tedious task for your business. It is like a blueprint of the business. Proper research on market demand, financial sources, the investment required, and whether your idea would work or not have to be done. Skipping the planning stage would be like hunting in the dark having no idea where it will lead you to.
Not Marketing Your Business
Having a belief that you don’t need to market your business and customers would come by themselves? Then this is your misconception. Don’t forget what you see is on sale. Upgrade yourself and start advertising your business to have a growth in your business.
These are the most common boo-boos made in the business. Do avoid them for the smooth functioning of your business. For more precise details, refer to an article by Business News Daily.
By Vanshika Tandon