Did you know that 90% of startups fail? Most of those fail due to common business pitfalls. If you’ve got a fantastic idea and you’re keen to turn it into a profitable business, these statistics may make you recoil in horror. It’s a tough world out there, but if you play your cards right, there’s no reason why you can’t be in the minority, rather than the majority.
Nobody wants to invest blood, sweat, and tears and then fail. If you’re on the verge of launching a new venture, here are some helpful hacks to avoid the most common business pitfalls.
3 Ways to Avoid Common Business Pitfalls
Research, research, research!
If you’re new to running a business, there are few things more valuable than research. Before you start designing packaging or coming up with brand names, you need to make sure that your idea is financially viable, and that there’s a place in the market for what you plan to do or sell. If there are already several similar products on the market or somebody is already offering a service you plan to provide in the local area, it may be time to think again.
It is possible to break into a saturated marketplace, but it’s very difficult to make a new business successful in these conditions. You don’t just have to make a splash, you also have to outshine all your competitors, many of which will already have an established client or customer base.
Before you get carried away, do your research, and find out everything there is to know about the competition, who buys the products, how much it should cost, does that profit margin work for you, and whether there’s room in the market for another contender.
Sort out your finances
One of the most common reasons new businesses fail is a lack of funding and the inability to finance the venture once the business is up and running. Even if you’ve got enough cash to fund the launch, you’ll need to make sure that you have sufficient resources to support you over a longer period of time.
It’s also incredibly important to keep a close eye on the books. If you’re not aware of your financial situation at all times, things can go horribly wrong. Not everyone is an expert with numbers, and if you have a lot going on, it really pays to look into working with firms that offer accounting for businesses like yours.
You should ensure that you have your eye on the ball from the first day and working with experts can help to avoid unexpected costs and ensure you’re doing everything by the book in terms of taxes and fees.
Value your customers
Your customers, both old and new, hold the key to your success, so never underestimate the importance of customer service and feedback. Many business owners go all-out to impress new clients, but you should realize that existing customers are your easiest target when it comes to repeat sales. If you can keep them coming back, there’s a good chance that they’ll also spread the word.
The statistics don’t lie, and it’s a lot easier to fall flat than it is to fly. If you’re an ambitious entrepreneur, adopt a cautious approach, but don’t let other people’s experiences put you off. Be organized, be methodical, and don’t underestimate the importance of research, keeping your eye on your finances and customer service.
Good luck!Published in