Did you know 20% of small businesses fail in the first year, and 50% fail after five years?
Those aren't small numbers and there's a reason. Running a business is tough work, and there's way too much uncertainty involved in getting a business to sustainability.
Luckily you can avoid some common mistakes made by business owners, in no particular order of importance, by reading on below:
Failing to plan
We've all been taught since a young age that planning is key. This is no different when running a business and without a rock-solid business plan that can be your bible during decision-making, the chances of things going wrong are likely. Having a plan in place allows you to establish a clear vision, understand financing you'll need, and implement the right metrics to keep track of as your business grows.
Not knowing your target customer or market
Many businesses will have a solid business plan but a poor understanding of the market their in or target customer. Both are important. Be sure to get clear on your competitors, what they offer, and the total opportunity of the space your business plays in. Similarly, get crystal clear on who your target customer is that you're selling to, and what are their pain points.
Being afraid of marketing
Even if you've got a target customer in mind, you'll need a solid marketing plan that can be executed well to get them to notice and buy from you. No business is going to rely on and thrive by customers coming to you. If you're looking to grow your business, you have to invest in marketing early on and understand the most profitable channels.
Hiring the wrong team
62% of small business owners have made a wrong hire that's cost them dearly. You'll need to begin building a broader team and make sure you're not hiring the wrong people. Have a thorough interview process in place, and always look at both cultural fits in addition to their skills to do the job.
Accounting sounds boring, and so most business owners overlook it until it's tax time. However, proper bookkeeping early on can flag you of cash flow problems and other issues to help steer your business in the right direction. Invest in a useful accounting tool so you can keep easy tabs on your company's financial performance.
It's tempting to work round the clock as an owner but eventually, you'll burn out. Moreover, you might expect this dedication from your team which can burn them out as well and results in high turnover. If you and your team are exhausted, no one is going to perform at their best, so always remember to take a break and lead a balanced life.
The above points are just the tip of the iceberg, and there are many more common mistakes business owners make. After all, many entrepreneurs have gone through the process and jotted down their learning. If you're looking for some guidance then consulting an Online Business Coach is an easy and affordable way to see what you might be missing when it comes to running your business. This is a great first step in getting the right guidance to lead your company towards sustained growth. Browse through our list of Online Business Coaches now.
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