Business and life are constantly evolving; they are both perpetual learning experiences. Don’t believe a person who claims to know it all, because every day, we may encounter new problems. Businesses can be affected by internal challenges coming from aspects such as the workforce or finances, as well as external matters such as law and product demand. New businesses are bound to have teething problems brought about by inexperience. Below, we shall look at the four most common mistakes committed by new businesses.
1) Not having a plan
Businesses that take things day-by-day have a much higher chance of failure. Starting without a business plan is often a recipe for failure as you pretty much have no blueprint to follow. The owners may have an idea of what they want in their head, but until it is put down on paper and scrutinised thoroughly, having only vague ideas leads to confusion as to what the goal is. No financial institution would loan a person or business money without first being presented with a business plan outlining their goals, and these organisations also have to think about how they will get their money back with interest.
Creating a plan gives you guidance on what you want to achieve and lays out how you will go about it. Of course not everything will go according to plan, but this is definitely considered a crucial piece of the puzzle when it comes to building a successful business. Keep in mind the saying: “Failing to plan is planning to fail.”
2) Having the wrong team
You may get into business with friends or family because you’ve come up with a great idea, but is the business benefiting from this team? Does each person have individual skills that can help build and grow the business, or is it all based on the personal relationship? When recruiting, for example, you would be searching for people who can fill in the gaps in your business and help drive it forward; what use is a team of people who all have the same strengths but are unable to solve the weaknesses?
3) Not taking advantage of technology
Technology is constantly evolving, often with the aim of improving a business’ efficiency. However, there are many businesses that are afraid to invest into areas that can help them further down the line. Take for example software for meeting management, which has been created to improve operations within offices and make the most of office space. A one-time investment in such technology can save a lot of time spent organising meetings and booking rooms; time that could be better spent elsewhere. The long-term benefits are clear; however, many new businesses are reluctant to make the investment early on.
4) Confusion over who your customer is
Often, many new businesses launch their products and services without having a full understanding of who their customer is. This may come about from a lack of market research or a general confusion of the target market. Or, they could actually find that once they have launched their product or service, it becomes popular with a completely different section of the market. A business’ target market and customer profile should be made clear before they launch, and this is why it is important to have a plan. Confusion over who your customer is will cause you to waste resources.