- Failing to plan enough
A common small business mistake costing most of them is the lack of a proper plan that will drive the direction of the business. Most small business owners fail to take their time to plan and ensure that their businesses are on the right track. Some fail to do research and due diligence about ideas that can give them a good foundation for success when starting a business. Therefore, before starting any business, the owners must do market research, create a business plan, file for a proper legal structure and buy the right types of business insurance.
- Ignoring competition
Ignoring competition is another possible fatal mistake that rookie business owners make. Even if you think you are ahead of the other players in the industry, you must acknowledge them as worthy competitors and work hard to ensure you are ahead of them. For instance, always scan the markets and know what is happening and what the competitors are up to. Keep tabs on competition that matters.
- Trying to do everything by yourself
Although working hard is good, working smart should be the right strategy for small business owners. Successful business people trust those they work with to the extent that they give them some of the duties to work on. They have a solid plan for their businesses and accept that they can do not everything but needs the hiring of partners or employees to handle their daily operations. They delegate their authority and work with advisors who help them build a successful brand.
- Failing to write down agreements
Verbal or handshake agreements are common mistakes that most entrepreneurs make. While it can be a sign of trust in the people you work with, it can be a source of legal problems that can damage your reputation and business. It is human nature to believe that your word is your bond. However, when it comes to business dealings, disputes are inevitable, and when such things happen, you need a contract written down and legally approved to prove that you agreed to do certain things. Therefore, if you want your things to run smoothly, create professionally and legally binding written contracts with employees, suppliers and investors.
- Not marketing or advertising enough
Marketing and advertising are two things that a business never stops doing. Even with a limited budget, your marketing should start with offering the best services or products, which will allow customers to market products via word of mouth. A business can get a lot from word of mouth and person-to-person referrals. This can only be achieved through the provision of top-quality services. However, most businesses fail to market or advertise effectively and therefore lose potential customers. As a startup, the right place to start marketing your business is social media. Create a catchy social media profile for your business on different social media platforms and start promoting your products or services. You will need a good social media messaging strategy that will ensure you can reach as many people as possible.