Running a business can be a gamble. Hard work and determination is never enough, especially if you are working in the wrong direction. In other cases, it is bad habits that ultimately lead to your downfall. Here are five mistakes that you have to avoid to keep your small business afloat.
Not conducting a feasibility study of the business
A lot of people start their business as soon as they can afford a space and the capital needed for their inventory. This is often done under the impression that the business they chose is so popular that it can work for itself. They then end up barely breaking even either because of market saturation or their target audience not being present near their venue.
Conducting a feasibility study will reveal the potential success of your product. Do this before you spend a cent on inventory or reservations. The population density in a business center is not enough so you have to make sure that your product is something that the public is interested in.
Not planning for the future
The phrase ‘don’t fix what’s not broke’ can’t help you because you have to improve your goods and services to guarantee success. What works now will eventually lose its novelty a few months later so you have to plan regular changes. It could also be a new marketing strategy every half a year to promote your business or a new product/service.
Minimizing the number of available labourers
So many business owners are tempted to either work alone or minimize their staff to two or three people. This is not an optimal plan if your business is successful and there are too many orders to fill. Yes, one to three people can complete them but you or your current employees will be exhausted. You should also consider the possibility of any of them having to take a leave. There should be someone who can take another person’s shift if needed.
Starting with a price lower than the market standard
Every aspect of your business affects your competitiveness in the market. The price is one of the biggest factors. Unfortunately, this encourages small business owners to lower their prices to attract customers from their competitors but this ultimately hurts their finances more than they realize.
Starting your prices from below average will make it harder to eventually raise them if you need to. Big franchises can afford to lower their prices but sometimes it’s because they cut corners for the sake of ease of production. Hands-on production can provide better quality than store-bought so your customers will understand why your prices are higher.
Relying solely on traditional and analogue means
Flyers and store-front transactions are limited. If you want to expand your customer base beyond the business center, then you have to make your company accessible through online platforms. You can either make a page at a social media site or develop your own website that everyone can visit. The catch is that these mediums have to be active and have engaging content. You either need to have an endearing online presence or hire a good digital marketer.