What is a common mistake that small business owners make?
The number of industry adventurers is increasing day by day. Many young Entrepreneurs are not too afraid to take the risk now and are moving ahead with all their hard work and dedication. Today’s youth do not delay in trying a new idea, they try it immediately and in this hurry many times they also make a mistake.
“The only strategy that is guaranteed to fail is not taking risks.”
Mark Zuckerberg, founder, Facebook
The first thing is that it is not an easy task to start the business and after starting it, it is a challenging task to move forward and keep it stable.
We all see that after changing business idea to business, it takes a lot of struggle to set up that business. After that, he has to face many obstacles in the development of the early phase and it is necessary to take the right decision in this hour. Sometimes due to such obstructions and some owner’s wrong decision, the business ends in 2-3 years.
According to survey, only 78.5% of small businesses survive their first year. 29% of businesses fail because they run out of cash. Finally, 70% of small business owners fail in their 10th year in business. And also according to research the failure rate of tech startups was around 99%.
“Mistakes are the growing pains of wisdom.”
Wiliam george jordan, writer/editor
There is a common mistake that small business owners make when their businesses begin growing. For this, in the new small business it is necessary to generate the reasons given below..
Expanding too soon
This concept took me a while to understand as to why expanding a business could be a bad idea.
Many times, by looking at the progress in business, we invest more money to increase it and we do not have much money, so we take a loan. But sometimes our prediction turns out to be wrong and our money cycle creates a big mess which leads us to the end of our business.
Being Afraid of Marketing
The mistake is assuming you don’t need to market and that business will come to you. There aren’t any set rules when it comes to marketing; the best type of marketing for you depends on your business and your target audience.
Deal with people
If people don’t like you, they won’t do business with you. Regardless of your personality type, it is a must to learn basic people skills. Deal with staff , client etc. we need communication skills. Sometimes misunderstanding leads ending up business.
Doing It All Alone
A small business owner may be willing to learn how to be a jack of all trades, but it doesn’t have to be that way. Build a team positioned for future success. Making the team properly and making it work properly and having it. Many times the bad team management leads to the end of the business.
Avoiding New Technology
As small business owners, technology can provide new opportunities, help us do our work more efficiently and even help us save money.
It takes a lot of time to learn new technology, sometimes it is found at a very high cost due to which small business people avoid it.
Failing to establish a BAIL team
A common mistake that business owners make is not establishing their B.A.I.L. Team. The BAIL team is the Banker (or financing source), Accountant, Insurance professional, and Lawyer.
Many of the startup companies are not associated with Professional Service Provider, because of this, we sometimes disregard the many benefits related to our business.
Lack of planning for business
The old adage, “Failing to plan is planning to fail”, is true.
It’s surprising how often people set up a business without setting any goals. Planning can be a long process, but the businesses which set out a clear plan with realistic goals more likely to grow successfully.
Don’t have clear vision
Every startup should spend time clarifying why it exists and what it hopes to accomplish.This is done by spending the time to articulate and write a mission, vision, and values statement.
If you do not have a clear vision, you will not be able to give the right direction to your startup.
“A dream doesn’t become reality through magic; it takes sweat, determination, and hard work.” –Colin Powell
Cash Flow Issues
Money problems in their various forms are top of most lists of startup woes, and for small businesses the major worries are clients stalling payments, unexpected outgoings, and outstanding bills that won’t wait to be paid.
Often the owners are unable to test the changing market, as well as the related advertising of the product, and sometimes overspending. It is necessary for the owners to pay attention to all these points.
In growing business, people often make mistakes and learn from mistakes. If mistakes happen, then learn something from them instead of being afraid of it and do not make the same mistake again. There is no alternative to conflict. Keep working hard…
“Remember why you started.”
Thank you ✨
Also like to read this: Problems Faced By Entrepreneurs