Plenty of entrepreneurs make the following business-sinking blunders. Learn from their lapses and elevate your company from just paying the bills to booming.
Would you ever set out a 5-year road trip without a map? Of course not. Don’t skip the essential step of creating a business plan. An effective plan spells out all the financial, tax, and legal obligations you need to tackle in order to operate your business. It should reflect your knowledge of the competitive environment, and then state your objectives to achieve success. It must also detail your administrative structure and budget. Review it regularly to make sure you’re staying the course, and revise it as necessary. When it comes to time to obtaining funding, or secure partners or vendors, a well-thought-out business plan will open doors.
“I’m a Trailblazer, I don’t need Advisors”
You may know your product better than anyone else in the industry. But to prosper with that product , connect with a team of knowledgeable authorities. Select a solicitor and accountant to help you navigate the often complicated legal landscape and tax terrain. Choose a bank or financial consultant that understands your goals and helps you achieve them. For Just SEO marketing, consider hiring a social media expert. And to grow your business, networking is vital. Be sure to attend seminars and conferences in your chosen field.
“I’ll cut the price on my product to sell more”
To generate sales, you maybe eager to underprice your product. But don’t, because doing so may undermine your brand identity and put your business at risk. Determining the right price takes work. It’s worth it. First, figure out what it costs to deliver your product into your customer’s hands. This includes development, manufacturing, advertising, and fulfilment – and don’t forget to include your overheads. Then go beyond expenses and assign a value to your product. This is a subjective figure that acknowledges how a customer perceives your product – comfort, convenience, joy or need. Once armed with your actual costs and your product’s perceived value, go ahead and set your price.
“I’ll do it all by myself and save money”
No one person can do it all. Besides, do you really want to tally your monthly business expenses? Purchase your office supplies? Pack and ship to customers? Manage a credit card processor? Build and maintain a Web Site? Do what you do best. Everything else? Surround yourself with smart, capable people and tell them how valuable they are. Frequently!
“My Product is Great, I don’t have to worry about customer service.”
Yes, you may never have to spend a penny on advertising because the word of mouth about your product is outrageous. but all it takes is for one customer to get gripe about your product on Facebook or Twitter and that negative sentiment could go viral. Make exceptional customer service your mission. This means making it easy for customers to contact you. Replying to them within hours. Going above and beyond to rectify a problem. And thanking frequent customers for their business with a shout out on your company’s home page or via a handwritten note – not just with discounts or special offers.
What other mistakes should entrepreneurs avoid? Please feel free to comment with them below..