5 Business Mistakes You Shouldn't Make
Every business has its technicalities, and the type of business you are doing determines the way to go about it. You should know quite well about a business before venturing into it by weighing your profit against the losses, risks, and your budget.?
If you have already settled on a business idea and are ready to grow your business, then having your long and short term goals, and drafting a market plan is the next thing that should come to your mind.
A marketing plan is a roadmap detailing what the business wants to achieve, when to achieve it and how to measure progress so that you can remain focused and know how closer you are getting every day to achieving your goals.
As you may know a business is not what can be managed without proper knowledge of it and a single mistake can result in losses and business goals disorientation.?
This article will acquaint you with the business mistakes that you should avoid to grow your business and stay at the top of the competition in the long term.
5 Business Mistakes That Will Cost You
Here is a highlight of the 5 business mistakes you should avoid.
Let us dive into the details
Not Planning Ahead
As a business owner, you must have a business plan– what business to venture into, what are the risks, profits, losses, resources, capital, and its short and long-term goals. If there are any risks involved, then a mitigation plan is also necessary to ensure business continuity.
While your business plan details the short and long term goals to achieve, it should also indicate how each of the goals will be met and the key performance indicators to help you track your progress and adjust when need be.
The plan should also include a specific "to-do" list that keeps everyone informed of the necessary actions and resources allocated for every activity to help the team remain focused and utilize the available resources responsibly.
In addition, assigning a reasonable time frame for the accomplishment of the goals compels the business team to work a little harder when necessary so that you can meet deadlines and make necessary adjustments in an effort to operate within the allocated time frame.?
They say failing to plan is planning to fail and that is true for business as failing to plan damages your effectiveness and can lead to loss, shortage of resources, operating on bad debts and losing your business.
Even though it takes a lot of time and extensive research, investing some time in planning your business ultimately saves you time and money and sustains your business in the long term.
Planning at the start of your business and knowing well the pros and cons of your business ideas helps you to remain confident in your business even when faced with challenging situations.
When you choose a business, you become an entrepreneur, and you are risking in hope that it will be worth it in the end. But knowledge complements risk takers and that’s why planning for your business is inevitable for your business sustainability.
Will the resources serve you in the long run? Are the products in demand? What are the social and geographical factors that should be considered? What are your plans? Is there a backup plan? What are the effective marketing strategies that you want to deploy??
Effective marketing strategies help to boost your market and your business. They are tested and trusted efficient tools that successful business owners have employed to reach their business goals.?
They include Facebook Advertising, Google Advertising, Search Engine Optimization, Email Business Process Outsourcing, Web Development, Social Media Management, etc.?
And if you need help assessing and understanding the most effective marketing strategies for your business, then you can consult an expert in the marketing space.
Every business is a different living entity, whether it is brick and mortar, or online, so they take a unique approach to every business because the glove doesn't just fit, and they? consult you before taking any steps.?
Without a plan, you have no roadmap to see which routes can take you from where you are to where you want to be and as they say, if you don’t know where you are going, then it doesn’t matter the road you take because after all, every road leads somewhere.
How often can your resources be replenished? Will they be found where and when needed? Is your capital enough for your business? Are your other sources of funds reliable?
Will there be many potential customers? Will your services be high in demand? Will it be demanded for a long time? Can it stand firm in the face of adverse socio-geographical changes??
Poor Financial Management?
A business owner who is keen on accomplishing his business goals weighs the losses and profits of the business to invest in, aiming at making profits.
Along with having money for the business to survive and expand, you also need to have enough money to support yourself while your latest venture is getting off the ground.?
As a business owner, you should have accurate financial information about your business. Failure to have the real-time data you need to effectively manage your business and key drivers, you can not make informed decisions.
In addition, your forecasting and analysis will be incomplete; and you will lose potential opportunities that your business needs.
A properly financed and managed business whose internal processes evolve alongside the rest of the business will achieve its vision, mission, and goals both in the short and long term run, and issues of financial mismanagement will never be a topic of discussion within the team.
A business that is poorly financed and managed will most likely have cash flow problems and issues such as potential cash flow crunches, and may eventually lead to loss of the business.
One of the biggest causes for any business failing is negative cash flow – rather than a lack of profitability and as a good business owner who is avoiding business mistakes should improve his or her overview of liquidity, and have the required cash in the business at the right time.?
A badly funded business is likely to weigh you down and frustrate you, not to talk of the feeling of looking at your business goals getting unhatched.
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Lack of Strategic Plan
Having a well-thought and measured strategic plan reminds you of the reason behind your business and motivates you to rise above the common business challenges that cut across delayed achievements, changing policies and technologies and rising competition.?
Taking time to conduct your research and competitive analysis, calculate your startup costs, establish business credit, fund your business, identify new opportunities such as partnerships and constantly review your plan to reflect the long term goals necessary.
In addition, strategic planning is significant in understanding the competition within which your business is operating, the gaps in your competitors' approach, and how to bridge the gaps creatively.
It is useful to understand the needs of your audience, and what your competitors are not offering, understand the gaps, and come up with a solution that makes a difference and makes you stay at the top of the competition.
Also, you need to strategically plan your business to improve your target audience, and the quality of your leads and drive revenue to your business.
If there is no strategic planning of one’s business it can be difficult for you as the owner to clearly understand your business's goals and objectives, as well as the procedures and actions needed to achieve those goals.
It will also lead to a lack of direction and focus, which can negatively impact the success of the business.?
Without a strategic plan, you may struggle to attract investors or secure financing, as potential investors and lenders will not have a clear understanding of your business’s vision and potential for growth.
Additionally, without a plan, it becomes difficult to assess your financial performance and can be at risk of financial instability or failure and as a business owner who is mindful of the business’s strategic plan, creating a strong and unique selling proposition for your business is inevitable.
Usage of Technology
Yes, we understand that technology will help your business to efficiently reach its goals, but have you considered its adverse effects? While staying ahead of technology is prudent, sensitizing your team on responsible technology usage is necessary.
Imagine situations when your technology may be unreliable and think of backup solutions for such scenarios. It can be disappointing when you have to halt your business operations because of technology failure.?
While researchers and innovators continue to improve existing technologies and invent new technologies, having backup solutions is one way of sustaining your business and standing out when other businesses are turning victims of circumstances.
For instance, a glitch in a credit-card processing operation will create business problems. A power outage might mean long lines of grumpy customers as clerks create handwritten receipts which can be difficult and tasking.
Likewise, technology has its expenses and each piece of tech comes with a cost, including upfront expenses, recurring fees, and maintenance charges.?
Before you commit your hard-earned cash to technology, it is required that you compare and analyze costs and benefits to determine if the expense is worth it.
Technology also comes with new and improved training, and money also has to be invested not only to buy these technologies but to train the people who will use them.
What about the time spent learning the new use of technology? Also, few technologies stand still. With constant advancements in technology, retraining becomes necessary to keep up with business trends.
Tech is also disruptive because it plays no favorites. Although it may improve your operation substantially one day, the next, a competitor’s tech might adversely affect you.?
Because technology evolves and spreads rapidly, major disruptions can happen at a surprising disruptive speed.
Hence, you should avoid over-reliance on a single technology, to prepare for unperceived glitches and ensure business continuity at all cost.
No Communication Plan
A good business owner who efficiently and accurately communicates with her co-workers and or customers will have good stories to tell about his or her business.
Communication cuts across writing out job and project descriptions clearly, making use of emails and messaging apps wisely, setting aside time each week to directly address workplace concerns and brainstorming solutions with your team for innovation and inventions.
Communication also helps in actively listening to clients to give them the utmost utility and co-workers and creating a culture of celebrating accomplishments and progress in the company.
Communication plans in business helps to resolve the lapses that usually occur in business as a result of stress, unmet expectations, relational breakdown, low morale, dissatisfied clients, family problems, and health concerns.
A business owner should avoid the mistake of not communicating effectively in business, as it will only bring your business to ruin.?
A communication plan improves your customers' satisfaction and improves the internal processes of your business which in turn leads to improved productivity.
General Overview
Managing a business can be scary especially when faced with unexpected circumstances. Such unexpected circumstances is the advent of Covid-19. While most businesses were hardly hit, some businesses were quick to adjust and find new ways of sustaining their business.
While you may be unsure of what the future holds, planning for your business, embracing change, being flexible and quick to adjust will save you a lot and open your eyes when your competitors are still struggling to take their ground.