Learn what the top 5 biggest mistakes a small business can make when starting out
Starting your own small business can sound intimidating. It does seem like a lot of work and can require quite a lot of time & effort. You want everything to be perfect, the target market, the products, the prices, the sales channels etc.
But at the end of the day, you get what you put into it. Learn what experts say are the top five mistakes you can make for your small business when you are just starting out.
1. Not making a business(marketing) plan
Yogi Berra once said, “If you don’t know where you’re going, you’ll end up somewhere else.”
Without a business plan you do not know you do not have a road map to success. You are truly trying to lead blind mice to the finish line. You may find it, you may not, and you are more than likely to get losta long the way and show up hours late. By having no plan and just going with the flow, you are more likely to waste not only time but money and resources presuing mindless ideas. By having a business plan you are able to stay focused, set clear measurable goals and provide positive security to investors.
2. Hiring too soon or not soon enough
Knowing when to hire can often be tricky for small businesses. Hiring too quickly can wipe out your cash flow fast. Not hiring at all can take away from the quality you are providing your customers, stretching resources too thin, and missing deadlines. It is more effective to start slow when you are beginning to hire.
“By far, the biggest mistake a startup can make is hiring employees too soon, such as hiring full-timers when a part-timer might make more sense or hiring an employee when a subcontractor could have done the same job/function. It is very easy to run a small business with part-timers, subcontractors and the services of other professionals.” – Joseph C. Kunz Jr., CEO, Dickson Keanaghan
3. Undervaluing your product or service
If you price too high, you could lose out on customers whom would have bought if it was priced lower. Price too low and you run the risk of not being able to keep up with demand. Also, losing out on potential profit you could have made because people were willing to pay more. It is important when creating your business plan to research the market you are in and see what your competitors are pricing their items and/or services at. This will allow you to create a more accurate price structure. You do not want to become the business known for freebies and leave money on the table.
4. Not defining your market and target audience
It is simply just reality that not everyone will want your product or service, and it may not be right fit for every audience ether. A benefit of defining your target and market audience is being able to get feedback from them and using that to adjust your business and marketing stratergy. If you do not define your market and target audience you run the risk of blending in with so many brands and wasting resources that will never be effective long term.
$37 billion is wasted in ad spend every year from ads that fail to engage the target audience.
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Category: Social Media Marketing 101