There are millions of people who dream of having a thriving business one day and many of them quit their day job to chase after this dream. However, three out of 10 new businesses that have employees don’t last longer than 2 years, according to the data from the Small Business Administration’s Office of Advocacy. If you are a solo act, and don’t have any employees that are working for you, the statistics of your business failing are higher.
You shouldn’t let this frighten you away from chasing your dreams, you can make your business a successful one as long as you take your time to learn the do’s and don’ts of the business world. There are many mistakes that most entrepreneurs make unknowingly, and these mistakes are easily avoidable. We are going to list reasons why businesses fail to thrive and hopefully after reading this you won’t make the same ones others have.
1. Trying to turn your hobby into a business: Unfortunately, there are many people who love their hobbies so much that they think they can turn it into a business. In some cases, you can be successful, but you have to be a pro at what you’re doing and you must be selling something that people actually want. There won’t be many people in the market looking for rock collections. So step back and relly take a look at what you are doing and ask yourself, ‘Name three major or National brands that provide the same product or service?’ Then ask yourself who is it in your city or local area, and lastly look at social media and find others that are doing what you are doing. Result? If you can’t find much competition, there might not be much opportunity, or you are simply in the right place at the right time.
2. No business plan: Most entrepreneurs fail to come up with a business plan or they don’t factor in everything they need to. In order for your business to take off you need to create a plan for it to follow. You need to figure out what your financial situation is, compared to what it needs to be, marketing strategies, management, and you short-term and long-term goals.
3. Not enough money: Unfortunately, starting up a business costs money, and most of the time people don’t realize how much it costs or think it won’t cost as much as it does. They spend the money they do have on the business but they run out before they can complete the entire process. Make sure that you have enough funds to cover every aspect of starting up a business before you take the leap.
4. Lack of marketing: Any business that wants to become successful needs to have marketing strategies in place. How else will people know about your business unless you get the name out there? You can market yourself by placing ads and attending marketing events to meet other business people who have the same interest as you. Alternatively, you can hire someone to market your business for you.
5. No web presence: In today’s time, all businesses, small and large, need a website. Whether you are actually selling goods through it or just placing information about your business and reviews about your product or services, a website is a crucial tool. Everyone uses the internet when they want to find something, and how will you ever reach people that are looking for what your selling if you are not on the internet?
6. Competition: It’s a dog eat dog world out there, and you must try to beat your competition at all times. Do your research about the competition in your area, notice how they sell and what the quality is of the items they are selling. Do they have awesome customer service? If so, take yours up a notch and make sure you provide the best quality items at the most reasonable price. Do they have more atractive or functional website? If so, consider contacting me for a free evaluation of your website and to see whatI can do to get people talking about you and your business.
Burnside | A technology professional with more than two decades of experience writing. He has served as contributing author for ‘Talking Tech’ Column in the Pride of Durham News Paper(NC), and has an ongoing contribution here on CyrilBurnside. He is a professional services consultant with PC99Solutions, an IT consulting firm for small business. Contact us today and watch your online business grow.