In this era where everyone is trying their shots into being business people and entrepreneurs, you might want to do the same and get in the business world. But some mistakes in starting a business may not be so easy to notice and you need some insight.
As cheery and colorful as all these businesses might look, not everything is peaches. People make mistakes in starting a business. Actually, more than 20% of individuals who decide on going all-in in the business world fail more than twice or thrice during the first two years of being open. Some business mistakes just happen.
But WHY? And HOW does this happen?
Well, in all fairness, no one said it was easy. Starting a business can be really hard and exhausting. It’s only fair that we make mistakes in starting a business. too much work and It can actually drain you. BUT it can be very rewarding in the end.
Businesses are great investments-even if you work a 9-5 and have an amazing salary. You can never go wrong with an extra stream of income.
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So moving on, why do some businesses fail? there are numerous reasons really BUT let me walk you through some things that people don’t pretty much consider. On any day, ask a person why businesses fail and they’ll tell you “stiff or competitive market” or “no customers”. But what they fail to recognize is what REALLY is the cause for that particular loss of customers and why they don’t stand out in the market.
NOT HAVING A CLEAR PLAN
Whoever invented the “business plan” wasn’t at all stupid…or crazy. Business plans are really important when you want to establish a successful growing business that will reap good profits.
A business plan is like a roadmap. When you do or don’t know where you’re going, it makes things easier.
A well-written business plan is an important tool because it gives entrepreneurs the ability to lay out their goals and track their progress as their business begins to grow. Formulating a business plan should be the first thing done when starting a new business. Business plans are also important for attracting investors so they can determine if your business is on the right path and worth putting money into.
When you fail to have a clear plan for your business, you won’t be able to know how far it’s actually going and whether your getting losses or profits. Most people don’t do this.
So be sure to draw up all the necessities and include them in the business plan. One trick that always seems to work is to double the amounts or items in your plan to avoid unnecessary shortages and disappointments.
Please DO NOT confuse branding with logo. Many people tend to confuse the words and literally think it’s the same thing. Even though the two work relatively close together and used together in a lot of ways, they are very very different. They aren’t the same thing.
While a logo is a symbolical representation of a product or business ( you know, like the apple at the back of your iPhone), branding is the sum of all user experiences with a particular product or service, building both reputation and future expectations of benefit.
OR you can also simply say a brand is a relationship a customer has with a company and its products and services. It’s more than just a logo. It’s the total experience that acts as the emotional trigger.
let’s take an example of our favorite gadgets.. iPhones. As I said, the apple fruit at the back of the phone is the LOGO but in this case, the iOS is the BRAND because it’s the one providing you with all the user experiences. Get it? Good.
Not investing in branding your products or services can take a toll on your business. Because first, you need a business that connects with your customers in multiple ways. A business that would make them come back to you and choose your business over a million others in the market.
People fail to market for their BRANDS and market for their LOGOs instead. A logo is something that is just there. It’s just a symbol or word that you can change anytime. How many times has McDonald’s changed their logos? Did changing their logo make them lose customers? NO! Because their brand had value- not a logo.
BUT I’m not saying you shouldn’t make a logo for your business. It’s important either way. It will represent you without having to say anything. Just like NIKE
TRYING TO GROW TOO FAST
Slow down there hustler!!!!!!!!!! Rome wasn’t built in a day.
Be careful or you might trip
Success shouldn’t be rushed… Not at all. When you enter the business world, you should know that it’s not easy. There are more than a million businesses providing the same services or products as you. Some have been in the market for many years and are still running strong.
My point is when you try to grow too big very fast the outcome will obviously be FAILURE. You won’t be able to see whether your services or products are doing justice to your customers and you certainly won’t be able to see where you’re failing because you’re just so focused on becoming big.
It’s the same thing with social media. We see a lot of people who start businesses buying pages with thousands of followers just so their businesses world look huge and have a lot of customers… DON’T DO THAT
Followers and likes don’t equal sales. You can have a million followers but don’t get any customers at all. Real customers come for value. Not because you have a mass following.
Personal experience( I learned this from our perfume business lapagra It started in 2017 without any social media influence or account. Until now, we get hundreds of customers off social media per month and the account only has like a thousand followers).
Start growing your business slowly and organically while learning from your niche businesses and researching new things so that you can lure customers to you.
Find out what is missing from other businesses or what your competitors have failed to deliver from their sides and use it to your advantage. See how you can perfect their imperfections. I mean, if you’re in a food business and you see that other people in the same business don’t put salt in their food, go ahead and put salt in yours.
Respect and love your business. It will return the favor.
NOT KNOWING WHAT THEY’RE DOING.
This isn’t something new. We all hear and see this all the tiiimmeeee. And I HATE IT.
You find a person wanting to do business with ZERO ideas on how the actual business works. That’s going to be a waste of money and time plus all the resources. Business doesn’t work by luck, rather plans.
You cannot plan a business when you don’t know what you’re doing. You want to walk but at the same time, you want to run? I’m aware you can do both but why not focus that energy on one thing?
My point here is, you started you’re business and only you know where you want to take it. So would you want to do other unnecessary things that you have no clue about? Don’t do things you don’t know or have any clue about unless you research about it first. When you start doing this, you will not only ruin your personal reputation but also that f your business.
I understand the urge of trying to grow but wanting to do everything by yourself even as a small business is the biggest mistake you can do. You can’t know everything and it’s better to admit that to yourself and look for other measures before you fuck up your whole business–and yourself in the process.
It might be costly to hire experts or have at least two employees OR have a team but it will help in the long run and save you so much time, money, and a lot of trouble.
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Since there are lots of mistakes you can make in starting a business, I’ll try to make this a series article so I can cover even more mistakes.