The business world is dominated by powerful organizations capable of recruiting the finest talent to drive their services forward. These companies have the financial resources to launch new products and market them as they want, reaching out to their target audience in a quick and efficient manner.
The other end of the spectrum is occupied by small businesses trying to get a foothold in the industry.
Small and new businesses have a major disadvantage – they have a lot of catching up to do with established businesses in the industry. Therefore, every step taken by them should be based on logic and a clear understanding of the industry they function in.
Here are 8 small business mistakes should avoid to ensure long-term success:
1. Not investing time and resources on a strategy document
It takes time to prepare the perfect strategy document. You will have to sit with your team and list out your company’s goals. And then you should highlight in detail the steps you will take to achieve those goals.
It doesn’t matter if you take a couple of weeks or months to arrive at a strategy document. The key here is that you have a document that serves as a roadmap to drive your company forward.
You should feature the following sections in the document:
i. Company Objectives
ii. Summary (an analysis of the company’s current strengths and weakness)
iv. Strategy (steps proposed to meet your objectives)
v. Assessment (propose a mechanism that helps you monitor the steps mentioned in the document)
2. Opting for a cheap location to house your office
Small businesses often look for avenues to cut down on costs. This is understandable. However, there shouldn’t be any compromise on location. Choose an office location that is neither too expensive nor too modest.
A lot of businesses invest in office locations they find at really cheap market prices. These offices are priced inexpensively because they are located in faraway places or because the neighborhood is bad.
So make sure you have an attractive office people will love visiting!
3. Not having a satisfactory online presence
Most companies already own a website and have significant social media presence. But there are still a lot of companies that rely on word-of-mouth to drive their business forward.
We live in the digital era. It is important that efforts are made to strike a chord with online audiences. Make sure you have a primary website while pursuing followers on social media at the same time.
4. Not focusing on raising sufficient funds
It’s important to become financially self-reliant. Approach family, friends and outsiders to invest in your company. Don’t rely on profits alone. It’s a big mistake committed by a lot of small businesses.
5. Choosing inadequate talent to represent your business
Fill your office with the best talent in the industry. All this comes at a cost. You will have to scan the market to shortlist the right candidates who are willing to join your company’s journey towards further greatness.
6. Not paying attention to existing customers
Existing customers are often a neglected lot. Most offers and discounts are geared at new customers. The older ones have to shout loudly to get their voice heard.
Do you have a strategy to keep existing customers happy and faithful to your brand?
7. Doing everything yourself
Some entrepreneurs are reluctant to hire managerial staff to take care of the business. This is a big no-no. You will have to hire qualified managers and delegate tasks. You should only focus on core issues that affect the functioning of the company.
8. Launching new products or entering new markets at the wrong time
Finally, we come to the most important mistake committed by small businesses. They often think of expansion or new product launches immediately after a success. This can have disastrous consequences if not planned well. Rely on thorough research before you start thinking of newer horizons!
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