What To Avoid When Starting A Small Business
You've heard it a tad too often - that yet another small business has folded up after only months of operations
. It's really scary, when you think about it, because this entails loss - loss of money and capital, loss of self confidence, loss of the dignity that comes with success. Failure is the pits. No matter how you say it, it still hurts.
Rather than me telling you what to do to succeed, I will make a list of things and mistakes small business owners must avoid in order to pre-empt failure.
Don't research about trends, customers' buying habits and the market. Just dive in. Congratulations! You just discovered the most common downfall of small (and large) businesses - the lack of research before starting up. Sure you have an idea, but is it feasible, doable and logical? Ever heard of a feasibility study?
Well then, I think you should take some time preparing one to avoid failure. Forcing customers to buy your well-made wool jackets in the middle of a recession in the Middle East is - well, uhm, too ridiculous to even explain. It's like selling mineral water to a whale.
Put all your money into a business. Sell all your belongings because you will earn a hundredfold. Putting all your eggs in one basket? You must never enter a business thinking that it's the answer to all your financial problems. Along with putting up a business are inherent risks. Don't be caught blindsided by mistakes in judgment. Leave a little for yourself. DON'T PUT IN CAPITAL YOU CANNOT AFFORD TO LOSE.
Spend a lot on advertising because it's the only way you can inform people about your business. Who sez? Leave traditional advertising to the big, established businesses because they can already afford it. Small businesses must start small in order to minimize losses. If you're remotely familiar with the internet, why not promote your company via social media networks like Facebook, YouTube and LinkedIn? You must realize that this type of marketing enables the business owner to "talk" and interact directly with potential patrons.
They are able to ask them what areas they can improve on, what the market really needs, and how errors can be rectified. Don't discount the reach of the internet too. What 10 full-page advertisements in the leading dailies can be achieved by one easily-searchable website.
Competition? Who cares about them? If there's one thing you need to find out much about, then that would be your competition. Even if your product is marketable, but if you fail to notice that your pricing is much higher than all your other competitors, then that's the end of you. Your "exorbitant" prices will spread by word of mouth to other potential buyers, and can possibly turn them off. Know what your competition is doing. Find out about their gimmicks and discounts.
Research about how many you're competing against. Only until you have the answers to these questions will you be able to determine your marketing course of action.
Think that your product will still sell 30 years from now. A video rental shop in the neighbourhood failed miserably after its current stocks of VHS tapes became obsolete in the advent of the compact disk format. Pretty soon, even appliance manufacturers stopped producing VHS players - every one of them upgraded to CD players. So where does that leave you? Remember, technology and change must never be ignored.
I can run my own business alone. Why must I pay others to do things that I can do? Okay, given that you can, don't you have any plans for success? Do you intend to be a one-man-band forever? Remember that if you hire other staff to do things for you (yes, even if you can do it yourself) will buy you more time for other administrative jobs related to running your own business. You can do some planning, researching, online marketing, and research on ways to improve your business. You are now A BUSINESS OWNER - not a slave to overwhelming work. Don't be selfish to your own self.
I have 3 huge clients. That's enough to keep my business afloat. A well-known hardware in town recently announced a "closing out" sale. Why? The owner focused on pleasing just 2 loyal customers who were contractors. As fate would have it, Client 1 had a heart attack and died; Client 2 was jailed because a mistake in the construction of one house resulted to the untimely death of the house owners when the roof literally fell on them while sleeping. Improbable? Well, better believe it because it's true.
Don't rely on the support of a very small number of clients. Work on increasing your client base, so that you don't end bankrupt when a few of your customers change loyalties. Invest effort into your future. Don't be too complacent.
by: Michael Griffiths
Nightclub Business Plans For Entrepreneurs The Joys Of Having A Metal Roof Over Your Business Business Loan To Fund Your Dreams Affordable Seo Services-the Key To Make A Small Business Flourish Experience A Rapid Growth In Your Business Through Quality Customer Support 7 Steps To Starting A Business Network Cabling In London- What Do The Businesses Look For? What Is The Benefits Associated With Phone Program Within An Business Start Accounting Practices For Your Business A Simple Secret For Small Business Owners Why Custom Website Designing Works For Small Businesses? Implementing Retail Supply Chain Solutions For Your Business Any Online Business Needs Quality Imprimerie Montreal