Being an entrepreneur certainly isn’t always easy; if it were, everyone would be doing it. It can be immensely rewarding – as many success stories attest to, but as a start-up business owner the journey can feel like a crazy roller coaster. There will be hardships, that’s a guarantee; only a minority of start-ups successfully survive their first year, and only a very small percentage grow into a profit-making enterprise that boasts a fifth-year anniversary.
You can do twenty actions the right way, but one big mistake can spell the end of your enterprise. To be successful, an entrepreneur has to have a good plan, but perhaps even more importantly, needs to know what mistakes to avoid. Here’s a look at the main reasons why businesses don’t succeed – and what you can do to be different.
Mistake 1 – bad or insufficient planning
In the business world, rarely do things go exactly according to plan; it’s something you have to account for. That doesn’t mean you don’t need a good plan, however. Your business plan should be carefully considered, written down, and continuously evaluated. Take your time to formulate your plan. Do your research. And have contingency plans ready.
Mistake 2 – insufficient financial resources
Business is all about cash flow. You’ll need to prepare funds as an initial investment, and you’ll need to ensure that there is a positive cash flow as soon as possible. Businesses often fail either because they don’t have enough funds to bridge them to the point where profits start rolling in, or because they fail to create profit within a certain time frame.
Mistake 3 – research failure
Research, research, research. Do research about your target demographic, and research about your competition. It takes time but it’s really well worth the effort.
Mistake 4 – bad management
Bad management comes in many forms; it could mean hiring the wrong people or treating the right people the wrong way, making wrong financial decisions, or taking a lazy attitude.
Mistake 5 – no promotional strategies
Don’t believe in the saying ‘if you build it, they will come’. That’s Hollywood. You need to promote your business and go after your customers. Have promotional strategies ready, such as digital marketing and social media marketing campaigns; if you’re not sure how, hire a marketing agency Cornwall offers, like Blind Pig Media.
Of course, there are many other mistakes to avoid. Often businesses go down because they choose the wrong location for their office or outlet, or pair up with the wrong or inadequate partner. Having too small a customer base or ignoring the needs of the customer can also lead to serious problems. Starting a business and growing it into a successful enterprise certainly isn’t as straightforward as you might believe – but it’s certainly worth it.
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