Mistakes are not necessarily bad for businesses. That said, you don’t want to make a mistake that will cost you your entire business. Here are the top five mistakes every business owner should know and avoid.
1. Not outsourcing and training your staff
Unless you’re a robot, you can’t run a big business alone. Even small start-ups start with two to three employees. Depending on the kind of company you’re running, there may be some technical tasks that are above your expertise. Instead of trying to do the heavy lifting, think about outsourcing some tasks to other people. You can also employ virtual programs to handle different projects. For example, you can use iSpring Learning systems to drive their staff training. iSpring Learn Reviews are very positive, and on-the-job training helps to update the skills of employees.
2. Not promoting your product/service
Some founders regret how they failed to invest in their marketing departments. While some tech gurus believe that a good product automatically sells itself, it turns out that it is not always the case. Your company can develop an awesome product, but if you can’t tell a great story about your indispensable product, the world may not see or appreciate it. Take risks and pump resources to hype your products through your marketing branches. That way, you can push a great product to reach its end-users.
3. Choosing a boring business name
Believe it or not, names have the potential to project businesses beyond the horizons. If you choose an inappropriate name for a great company, it may not resonate with the target audience. Take a quick look at world-acclaimed business organizations such as Apple Inc, Amazon, Google Inc, and Microsoft — their catchy names speak for the companies. Do not hesitate to rename your company if you feel that its name or tagline isn’t compelling.
4. Picking the wrong business type
Is your business a sole proprietorship or a corporation? In their haste to launch themselves in the market, some founders end up selecting an inappropriate business form. The fact is that business entities have different legal implications, and you should be very mindful of that. A wrong business structure can expose founders to legal risks, and cripple your ability to source capital. Always consult legal experts before you put a square peg in a round hole.
5. Ignoring customers and competitors
A business will usually get its revenues from the products or services it offers to customers. Therefore, ignoring customer concerns (intentionally or not), is a decision every entrepreneur should try to avoid. When it comes to competitor analysis, business owners should not sleep. Studying the strengths and weaknesses of your competitors can unearth a wealthy pool of information on how to improve your business.
To summarize, one small mistake can collapse a big business you have worked so hard to establish. Since 50% of start-ups crash and burn before reaching their 5th anniversary, you should pay attention to the mistakes discussed here.