Small businesses are one of the largest employment generators. During pandemics, people have realized the power of small businesses. In the digital world, a new generation of small businesses is coming which are solving the customers’ problem by providing out of box solutions.People are running online stores from their home,online coaching from their home,stitching garments or manufacturing small parts etc. are the small businesses.ROI in small businesses are very high.
Most small business owners are first-time entrepreneurs without any business training and they start their business with small capital. If they suffer losses then their lives become difficult and studies suggest that around 70 % of small businesses disappear within 3 years of their birth. I have studied a good number of small businesses and prepared a list of 10 common mistakes made by small businesses.
Here are the common mistakes small business owners make, and how you can avoid them:
- Not evaluating your business idea– Evaluate your business idea in real-life situations.
- Not writing a business plan– Write a realistic business plan which should cover the target revenue, expenditures, risks, etc.
- Not focusing on cash flow and profits– Focus on cash flow and profit from day one.
- Launching the number of products at a time– Always launch one product at a time and make it successful then go for another. Spreading too thin divert the focus and resources.
- Not investing in marketing– Invest at least 3 to 8 % in marketing. Marketing builds the brand and brings sales.
- Chasing the competitors-Never chase your competitors. Always chase your customers.
- Not ready for delegation – Always delegate non-core works to the team.
- Not researching your target customers– Research your customers and respond accordingly.
- Not having a solid marketing plan– Prepare a marketing plan based on customer research to address target customers.
- No collaboration – Collaboration is key to success. Be ready to collaborate to scale your business.
Avoiding the above 10 mistakes will help your business to become profitable in a shorter period. Your success in small business is a mail away. For assistance write to us email@example.com
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