No matter the size of a business, the way it is run is one factor that ultimately determines its success. As much as there is no fixed formula for running a business, managing a business depends greatly on a variety of factors that are different and unique to each business. This article focuses on small business mistakes to avoid.
1. Lack of a business plan
A business plan is essential in setting up goals, strategies and expected direction of a business. This comes in handy whether for a small business or big business. Though, most small business owners underestimate the power of a business plan with the assumption that their business will be successful even without it. Lack of a business plan for any business venture is like running a business without direction which is a big step towards failure.
2. Underestimating their financial power
Most owners of small businesses usually have a notion that when the business is still young, it cannot make good money. This has often led to most owners underpricing their goods and services in a bid to win more customers. Though it is quite a good strategy to attract customers, if not carried out wisely, your business will surely be an epic fail. Every young business is in usually dire need of any money you set your hands on and by giving out goods and services on credit, you risk late payments or total lack of payment which is terrible for your small business.
3. Underestimating the power of the customer
Any customer who comes to your business for goods or services usually has a great power of making or breaking the business. Most small businesses focus on serving many customers at a time and ignore the need for individual outstanding customer service. This could put a toll on the progress of your business especially when a customer leaves unsatisfied. A happy customer will promote your business positively while a disappointed customer will do the exact opposite of this. Word of mouth is actually the best promotion for your business and it comes from offering the best services and treatment to each and every customer.
4. Ignoring the use of social media marketing
In this era and age, most people will be found in front of their computer monitors and on their mobile devices, mostly communication via social media platforms. This is an incredible platform to exhibit and market any small business. Most small businesses ignore this without the knowledge that it could actually get their businesses to be known worldwide. From social media, you get to know your market, exactly what they want and you also get worldwide views of your business.
5. Choosing an unreliable hosting for your online presence
With your own blogs and websites, you have the liberty to post your content in form of words, images and videos among others unlimited. You also get a chance to operate your business remotely especially where your services and products can be sent over the internet. Choosing an unreliable web hosting company will not only waste your resources but will send your clients away. The technicians from System90 hosting warn that more than 70% of websites and blogs hosted by such hosting companies are characterized by broken links, code errors and poor user interfaces that are unresponsive, hard to navigate and complicated to use.
Before starting a small business, it is very important to have a comprehensive business plan that covers financial needs, market needs and location just to name a few.