The Hard Truth of Starting a Business: 4 Mistakes to Avoid
Most people think that being an entrepreneur is difficult—at least that what 25,000 people from 24 different countries said in a 2010 BBC survey. There’s high chance that a new business will fail within the first five years primary due to lack of focus of the owner to his or her enterprise. If you don’t have what it takes to be an entrepreneur, it’s best to look for other income options.
However, there’s always the high call of being entrepreneur with introduction of modern technology these days. As lots of first-time entrepreneurs go from being a nobody to a celebrity overnight earning millions to even billions of dollars, it’s easy to get tempted to plunge into the business world as well. Nonetheless, part of being successful in the business industry always involves making smart decisions. If you are toying with the idea of starting your own business today, you might want to avoid these common mistakes:
1. Starting without identifying the target audience. Creating products or services that are addressed to everybody is like doing an impossible task. You don’t know where to go and how to go about the task. If you intend to identify your market right after the launch, that will be bit risky on your part. Early on the planning stage, you should already identify who your target market is. This will help not only in creating products but in marketing your business as well. Because you know who you should be talking to, you can effectively produce advertising booklets, brochures, catalogs, and other marketing pieces. You know who to target and how to talk to your prospective customers. As a result, you get to maximize your marketing dollars.
2. Hiring employees too soon. Some entrepreneurs think that they need to hire employees right away. What they don’t realize is that this can lead to disaster especially when working on a shoestring budget. Before hiring employees, it’s important figure out first whether hiring an employee is really necessary. After all, as a business owner, you are required to have hands-on experience on your business. If you have to wear many hats to get first-hand knowledge and expertise, then so be it. Don’t hire too soon. Make informed decisions so you don’t regret your choices in the end.
3. Making changes abruptly. It’s all too common for business owners to make changes at once when they get harsh feedbacks from customers. There’s nothing wrong with making changes to provide better service and product to consumers, but it’s important to evaluate each change and ensure that it meets with your long-term goals. There are times when the changes desired will only lead the company to the wrong direction, so again, make informed decisions.
4. Using the wrong marketing literatures. With the various marketing materials available these days, it’s easy to get confused with which to use. Often, business owners invest in whatever is trendy these days. Understand though that not everything that is trendy and popular will be ideal for your business. With your budget limited, you have to ensure you make the right choices. It’s best to use varied materials. Fortunately, printing shops these days offer discounts on booklets, business cards, postcards, and all other materials to help you save on the cost.
Having your own business can be a rewarding experience but the risks involved will surely be great. If you want to start your own business, make sure you avoid the mistakes above.ss
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