Contributed article in our entrepreneurial series. Enjoy! – Kimberly
According to many entrepreneurs, running a successful business can be challenging and very exciting at the same time. When due diligence is observed, financial gains from the startup are almost guaranteed.
Unfortunately, some business owners end up choking the business unconsciously by doing some things that are unsuitable for the organization. In most cases, this is as a result of insufficient experience which is a conspicuous characteristic of new entrepreneurs. Making slight mistakes in management can be corrected if they are discovered early enough and you can recover in a short time.
However, not all mishaps can be salvaged in time. This means the business could go under if you keep on making the mistakes on a grosser scale. In this article, we will discuss some of the things that can secure a one-way guaranteed ticket to its grave.
Lack of commitment and heartfelt intention
Building a great startup is not the same as developing a product overnight and introducing in the market. In fact, if you want to create an authoritative brand, you must be willing to succinctly be clear about what your business is about, the audience, and the intended perception in the market.
When your business is still young, there may be some financial hurdles and this means that you may lack the funds necessary to run a marketing campaign on a wide audience. The markets for most startups are defined early and trying to address a bigger segment is usually interpreted as lack of intention and focus. Until your business has achieved growth milestones, focus on the most important market segment.
Underestimated financial requirements
Most businesses are in a constant need of funds to cater for recurrent expenses like wages, suppliers, and maintain the cash reserves for planned growth and expansion. The cash requirements may grow bigger as the business evolves but this should not be an excuse to make rushed decisions.
When you haven’t made an accurate financial projection, it’s easy to succumb to demands by online loan providers seeking to offer you some cash in exchange for equity in the company. At all times, keep an eye on the long-term goal and don’t compromise the future of the company simply because the overheads are growing.
Of course, mistakes can happen when estimating the capital requirements but this doesn’t mean it’s a final blow. Whenever you realize that you are in need of some cash you hadn’t planned for, remember you can seek a business line of credit from your bank or an online lender. These loans are flexible and they give you a way of tapping into a standby pool of cash whenever the need arises.
Ignoring tech investments
Today, businesses that are not actively investing in technology risk losing most of the customers to the competitors. This is because most people have embraced the internet and they like the convenience of products and services offered through the internet.
Even when you don’t have an e-commerce site, it’s still important that you invest in a good website or blog. This will enable you to use digital marketing effectively and reach your target audience with ease. Since most customers are quite informed, it would be a mistake to neglect the most used communication channel. At the same time, having an engaging social media platform is as important as having the latest IT service for your business.
Overlooking customer needs
Unlike in the past when customers were less informed about the products, modern customers are quite aware of the current trends and they demand personalized attention. In any business, the customer should be the main focus since the startup exists to serve the clients. Without the customers, there would be no cash flow and the business would go under sooner or later.
It’s not strange to come across multiple companies that are striving to develop new ways of increasing the profit margins without considering the welfare of the client. When making the business decisions, you must make sure that your customers are getting more value out of your product. When you make your customers happy, the chances or increasing your sales and revenue grows in direct proportion.
Ignoring the employee morale
The brand you are trying to build will only be as strong as the team supporting it. As such, your employees must be engaged in most of the business undertakings so that they can develop a sense of belonging.
Job satisfaction of your team is critical in determining the success of the business. When the employees are suffering from low morale, it can lead to lower productivity, rising healthcare expenses and below average customer satisfaction. In as much as you are the owner of the business, your employees are your support system and if they are not motivated, it may be just a matter of time before the organization comes tumbling down.
A long-term employee engagement strategy can be a great way of instilling confidence in the team and giving them an assurance that their position is secure. If this is achieved, you will have a team that can work with minimal supervision and performs exceptionally well.
Final words
Every entrepreneur has a dream before starting a business and it’s the belief in the dream that pushes you forward. Nevertheless, the path is never straight and you need to make adjustments along the way. There are many mistakes that you need to watch out for as your business grows. The best approach in business is learning from the mistakes of your predecessors rather than paying the expensive price.
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