Running a business comes with a lot of peculiarities and challenges. Mistakes are bound to happen especially when it is a startup. As an entrepreneur, you have to learn every day especially from past mistakes to avoid repetition and running at a loss. While you cannot control some inevitable circumstances that you have no control over, here are some business mistakes that you should consciously avoid at all costs.
There comes a time as an entrepreneur when financial constraints will serve as a major challenge especially when you are considering expansion or diversification.
You need money to see your plans through and borrowing seems to be the only option. Yes, you can borrow but only with wisdom and when you are sure of what you are investing in.
Business comes with a lot of risks and things may take an unexpected turn and this is why you should not borrow excessively to avoid being crushed by debts. Trust me; you don’t want to be sunk in debt as an entrepreneur because of frustrations that may lead to depression.
Borrow wisely and be quick to repay to relieve yourself of the burden that comes with owing money. You do not want to risk borrowing at the expense of losing your business in the long run.
Spending your profits on frivolities
This is one of the easiest business mistakes to make as an entrepreneur. After putting in all the work and hustling your way to your first break, there is an urge to splurge on yourself as a way of compensation for all your troubles. Don’t!
Your profit is the leverage you have when things go south. It is the backup plan that you fall back to when you need to strategize and fill up some loopholes.
Don’t risk your business because you want to satisfy a temporary craving to buy things that do not contribute to the growth of your business in any way. Invest or save your profits for rainy days when you have got urgent and important business needs to be met and you will be glad you did.
Doing business with familiarity:
Someone once said, ‘business flourish when friends and family pay for the services you render.’ This is nothing but the undiluted truth.
Sometimes, you need to be firm and avoid overfamiliarity at all costs when you are doing business with familiar faces.
Your business is your source of livelihood and should be protected at all costs.
Ensure your friends and family pay for your products and services when it is being rendered.
Do not let debts accumulate or rely on empty promises made. When you mix business with the pleasure of familiarity, you are headed towards an unpleasant end because when the bough comes crashing, it will be you alone that will bear the consequences of your bad choices.
Be friendly with your customers but be disciplined when money is involved. You don’t want to run at a loss, do you?
Low marketing strategy:
if you don’t advertise your business, who will help you do it? How will people know what you have to offer? How will you make sales? Do not keep silent about what you do! Advertising is imperative in business. Do not leave your business to chance that customers will find you where you are.
You have competitors out there who are ever ready to yank your customers off your list if you sleep on this matter and as you know, no customers no sales, and when there are no sales, money won’t come and if money doesn’t come, well…you should know the end by now.
Talk about your business through word of mouth, referrals and of course, social media. The world is waiting.
Not setting goals:
An entrepreneur without specific, measurable, attainable, relevant and time-based goals is like a wanderer with no destination in mind.
Every road will lead to nowhere and you will keep making an abrupt and unplanned decision that might end up in regrets. You should have short and long term goals to guide you in managing your business.
Don’t run your business anyhow and hope for a miracle to come, be purposeful and intentional about everything you do. You have started well, maintain that trajectory and run your business with direction.
Finally, avoiding these business mistakes will save you stress and money. This will further help you to put your business in the right perspective and focus on other important things.
Do not be pressured to make these mistakes, stand your ground and be prepared for great things to come. And if you have made business mistakes in the past that have taken its toll on you, don’t beat yourself up.
Learn from it and move on. You may not be able to right what has been done but you can make wise choices today and protect the future of your business.