Starting a new business seems exciting, but wouldn’t seem that way for too long unless the main business objectives remain unachieved. While knowing “what to do” in a business, it is also important to know “what not to do” which can lead to business failure. Research conducted by the IBM Institute and Oxford Economics reveals that 90% of new businesses in India fail within their first five years. However, you must be aware of the mistakes to avoid when starting your business.
Let’s take a look at 4 mistakes you must avoid when starting a business
Mistake #1: Going with the flow
One of the main reasons behind businesses failing is improper business planning. Most business owners, especially in the retail industry, overlook the significance of drafting a proper business strategy. Planning doesn’t just involve capital investments, long term or short term goals. It also includes understanding the current market situation, knowing how your business benefits the market and having an eye on your competitors.
Without a proper business plan, businesses don’t run but just wander. To avoid this pitfall, a well-written business plan must be made. This doesn’t only help one understand the status of the business but acts as a roadmap that helps in decision making. Experts advise new entrepreneurs to include SWOT analysis while planning, as it helps in identifying key strengths which can be used in business opportunities while improving on the weaker sections. So the “Going with the flow” tagline doesn’t work when starting a business, because even a dead fish flows.
Mistake #2: Failing to invest in marketing
Best product may not win all the time, but the best-known product definitely wins. To make a product/service “the best known” needs constant marketing. Marketing is the heart of the business. Marketing not only helps in reaching sales but also helps customers understand their business. Although marketing is not a quick fix for reaching business goals, it is certainly a huge factor for business success.
Although, marketing depends on the type of business and audience you’ve got. For instance, you run an e-commerce business that sells products throughout India. Rolling out flyers or displaying billboards in your local area doesn’t make any sense. Instead, the same money and time can be invested in digital marketing which helps you reach a wider audience and also generates sales. Hence, use the right marketing strategy to shoot up your sales.
Mistake #3: Undervaluing Time and Technology
Time and money are inevitable investments in a business, but the former is often ignored by many entrepreneurs. Earlier, business owners had to be active on phone to ensure they do not miss any telephonic order. Thanks to technology, the times have changed where right from ordering to delivering a product has become automated with the help of custom made websites and mobile applications. On the other hand, time-consuming activities such as billing and ticketing have become easy with a powerful POS system. Spending too much time on small things that can be easily automated, slows down the business.
Hence avoid manual activities that take a lot of time, instead implement automated tools that help you save time for activities that actually need attention. Not to forget, businesses that stay up to date with technological capacity, have an added advantage over competitors. So, make sure you invest in the right tech tools that help your business run efficiently and effectively and know the mistakes to avoid when starting your business.
Mistake #4: Doing it all alone
Every new entrepreneur bounces off the wall while starting a new business. But trying to take care of every activity in the business need not be one person’s work. It is good to be the “Jack of all trades”, but trying to be too independent makes you “King of none”. Sole entrepreneurship just happens in books, no business can run productively without proper organizational support. Studies show that a lot of businesses fail due to lack of expert help and entrepreneurial experience. Hence starting off with “I can do it all” attitude turns out to be a recipe for burnout. Get on board with the right people who can help you run the business and avoid your future failure.
Although, hiring professionals to work for you might not be cost-effective all the time. We at YumzyX can help you with this. Covering every business aspect, we have a team of experts who can help you right from building online tech platforms to marketing and getting you the right POS system.
Committing mistakes is inevitable, but we can help you steer a clear way to reach your business goals. You can also visit our blog – https://blog.yumzyx.com/signs-your-brand-needs-mobile-application/