3 Mistakes to Avoid in Business Startups
Business startups are not as easy as they seem and nearly 90 percent of new businesses fail in the first year. Ask successful entrepreneurs and they will tell you this is true because at one point or the other, they, too did not make it several times. But here, we will not talk about what you need to do in order to succeed in your endeavour. Instead, you will read about what you need to avoid in order not to fail.
Not Focusing on a Specific Audience.
It may sound convenient to be marketing to customers from all ages especially if your product is versatile but the truth is, this can be a bad idea. People have various needs and if you have a broad target market, you might not be able to come up with a product that will meet their preferences. What you need to do is identify a specific target market in terms of age and their needs. Once done, you can now focus on creating a niche in the market. From there, you can concentrate on improving your product or service geared toward delivering to your specific customers.
Overlooking Overall Costs.
Even if you have the money to come up with a product, if you do not have an idea on how much will that one product cost in terms of manufacturing and advertising, you might end up with losses. By knowing how much you need to invest in order to sell a certain product and subtracting it from the gross sales you will be getting, you will determine the profit after expenses. If you will be spending too much on adverts with the sales failing to cover the expenses, this does not look good.
Not Taking Care of Existing Customers.
Just like in training new employees, getting new customers is more expensive than retaining loyal ones. If you will focus on new clients and not take care of those who have been buying your product or service all this time, you are bound to lose them.
For a successful business startup, it is important to know both what you need to do to move your company forward and what you need to look out for to avoid closing down.