The chance to run your own business is both potentially exciting and daunting. While there are a lot of great opportunities it can also be fraught with pitfalls. Here are the five top mistakes small businesses make and more importantly what you can do to avoid them.
- Don’t be afraid of competition
One big problem companies have is that they are afraid of taking on larger competitors, even in a small local area. The trick is to look at what you can offer that they can’t- for example if you sell cakes they may not be cheaper but if they taster better than cheaper products or your café is more relaxed and you offer better service then people are more likely to come to you.
- Don’t get ahead of yourself
While thinking too small can be an issue it is also important to not become overconfident either- initial success can cause overexcitement, so you need to be able to maintain a consistent approach.
Being passionate about what you do is great but you need to also be able to know what you have to offer- self-confidence is desirable but arrogance is not.
- Can you deliver?
Another issue to consider is whether you have the resources to match the demand for your services. It is not just about the first sale but consistently getting sales and growing after that initial wave of interest.
This means building on promotion as well- for example an advert on TV can be great promotion but if you also let people know when it is on and get people talking about it you can maximise that opportunity.
The big test is being able to continually maintain a high standard of marketing, customer service and quality of product. You may not have the resources of a larger business but it is possible to grow and develop.
- Knowing the figures is vital
If you want to apply for a loan then you have to have a realistic idea of projected profits. If you are setting up a crowdfund you need to know how to budget- earning a large amount of money is great but if you don’t measure up the costs then you won’t make profit. While this may sound, obvious this is an often area where people trip up!
- Don’t forget the cashflow
Finally, one aspect that needs to be considered is your cashflow- even companies that get a lot of sales can face problems if they don’t have the resources to deliver their products to businesses.
In simple terms these five mistakes come down to knowing about what you have to offer, how you can promote your business and having the ability and resources to make sure you can deliver on the promise you can offer to your customers.
For more resources to help promote your business there are a range of promotional tools available through Digi Toolbox. To find out more please contact us today.