sales@saeasybiz.comIt is quite a common fact in the business industry that approximately 20% of new businesses fail within the first two years of operation and approximately half of all the businesses do not get to pass their 5th year.
Missteps are a natural part of business and you are bound to run into problems no matter how long you have been in business.
The key to success is to learn from your mistakes and identify your weaknesses and avoid them in the future. It is also wise to learn from other people’s mistakes and avoid paying the price with your own business
Try trying to do everything by yourself
Most Businessmen believe that they can do everything by themselves and that they are the only people who know how to get things done correctly. While to a certain level you might know best about your business than anyone. However, it would help if you still delegated some responsibility to others.
As business owners, there could be a number of things that you might not be good at for example handling customer calls, social media, and managing taxes could be a bad idea if you are not trained enough or qualified
Making unnecessary investments
According to CB insights proximately 38% of the business is failing because there are out of cash. What are the reasons for that spending, when starting any new business you have to spend money to make money that works only if you spend it on the right things.
Choose your business niche wisely depending on your budget. There are plenty of options to look for in the self-defense industry, beauty industry and general merchandise.
Mixing personal and business finances
As cliche as it may sound it is natural to consider the company’s assets your own money. While to some extent it is true however it could lead to some serious financial West when you are a business owner. Therefore it is important to consider your personal and business finances in separate heads.
It is recommended to open a separate business account that is specific to your business and apply for a business credit card to track your business expenses.
Not having an online marketing plan
Many business owners with offline businesses are new to the trend of online marketing. However, driving traffic to an online store is totally a different concept as a whole.
With 32.5 million small businesses in the US alone, you would definitely require an edge in order to succeed
An online marketing plan will not only enable you to identify your target audience but it would also help to differentiate yourself from your competitors. By defining your ideal customers you can certainly make strategies to address them directly.
It is recommended that you must optimize your most effective online marketing asset- your website. Even if you rely on client referrals, a website with stunning visuals and content can set you apart from your competitors and rules your website’s sales.
Underpricing
One of the most common mistakes the new business owner make is understanding enterprising their own products or services. They often do this in order to the customers and boost their sales or maybe overtake their competitors.
A big commerce study has revealed that approximately 80% of customers compare prices on the internet before deciding to buy. Competitive pricing is the most crucial step that influences the Purchase Decision of customers