A Fundera survey revealed that about 20% of businesses fail in their first year, while 30% fold up after two years. What’s more, 50% close down after five years, irrespective of what business owners do. These staggering statistics reveal that your business will likely fail should you ignore certain factors. That said, there are mistakes you must avoid to ensure your brand success and longevity, including the following.
1. Failing to make a business plan
You may be sabotaging your business if you don’t draft a business plan for your venture. Not only does it give you the bigger picture of your business, but it also helps you map out strategies and tactics to establish it. Moreover, it enables you to allocate your resources, time, and efforts strategically and efficiently, preventing waste. What’s more, it keeps you accountable as you set goals that you can track and evaluate. Besides, it would help if you had it to attract potential investors, so keep this in mind.
Suppose you have a lucrative business idea but aren’t sure how to begin. In that case, it’s best to draft a plan. An ideal business plan contains your executive summary, business description, marketing strategies, financial projections, development plan, etc. Fortunately, you can leverage the internet for ways to write one or consult a professional for the best results.
2. Ignoring market research
You risk missing valuable opportunities to promote your business when you ignore market research. How is it possible to introduce your products or services to the market without determining their feasibility? Furthermore, you will need to conduct research to assess what price range the market considers to be fair for your product.
This can be done with something like Conjointly’s Van Westendorp PSM. Indeed, customers are the backbone of business success, and designing your brand without understanding their needs will automatically set you up for failure. Moreover, failure to conduct thorough research can lead to indecision, and waste of time and resources, among others.
That said, it’s essential to determine the purpose of your study and identify your target market. It’s also necessary to research your competitors to determine their strengths and weaknesses. That way, you can ascertain your brand’s strengths and build on them.
3. Not leveraging technology
You can’t underestimate the importance of technology for your business’s success. Technological advancements have helped many entrepreneurs connect with their customers easily through social media, e-mails, instant messaging, blogs, forums, etc. Moreover, through technology, business owners can efficiently work with their clients to design products and services that add value to them.
It also promotes convenience, seeing that the world moves at a fast pace now. For instance, a credible payment provider for the restaurant industry is practical if you wish to be a trusted restaurateur. Therefore, it’s prudent to leverage technology relevant to your business for the best results.
4. Not preparing yourself financially
A U.S Bank study revealed that 82% of small businesses fail due to poor cash flow understanding, and 79% collapse because they start with little money. That said, launching your venture without adequate finances and poor financial management will cause it to eventually crash, leading to a waste of time and resources. Therefore, it’s best to put a feasible cash flow management to monitor how your money is used. By all means, monitor all expenses, and build an emergency fund to cater for unexpected situations.
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