Mistakes to Avoid in Starting a Business
Mistakes to Avoid in Starting a Business (Every Entrepreneur Should Know)
Are you going to start your own business? How does it feel? Turning your vision into reality by starting a business of your own is the most exciting moment in everyone’s life. But studies suggest that around 20% of businesses fail during their first two years of operation. Moreover, half of the new businesses don’t survive after their 5th anniversary. So how do you successfully start your own business without making any big mistake? Here, we compile 8 costly mistakes to avoid in starting a new business.
1. Engaging with trolls
There’s an old saying by Mark Twain which goes: “Never argue with a fool, onlookers may not be able to tell the difference.” Engaging in open flame warfare with an internet troll is like arguing with a fool. If someone is blatantly saying pointless or offensive things, feel free to delete the most egregious comments if you have the ability. For those times when you do not, offer to speak with them personally via email or phone. Whatever you do, never further the discussion in a public forum for others to see.
2. Ignoring legitimate customer complaints
Your customers who complain would be your favorite customers. A mistake was made, and rather than walking away from your company forever; they’re allowing you a chance to see what went wrong and correct it.
Social media accounts are rife with negative comments. Dealing with them is much the same way as a troll. Publicly invite them to speak with you, do not allow the conversation to play out in public. Once you have them in a private discussion, they’re just like any other complaint.
3. Inappropriately joining conversations
We are not talking about making a fart joke here; we are talking about approaching conversations with a sales pitch in mind. This is the wrong mind frame for social media.
Your concern should always be to offer a solution to a problem or to offer useful information. If this fits into your products or services on offer, you know you’re relevant to the conversation.
4. Not having any plan for your social media content.
This can happen so very easily on Twitter: you haven’t said anything in a couple of days, you worry that your fans are going to forget about you, and you post something, anything at all, to stay on their radar. Getting desperate in any situation is a bad idea. Desperate content reeks of poor planning and could be a bigger turn-off than no content at all. Take the time to plan in advance.
5. Co-opting world events that are unrelated
Nothing drives you crazier than a social media account for a coffee company in America tweeting out pictures about a royal baby birth in England. It is blatant capitalism in regards to the birth of a baby, and it is completely unrelated to what you do.
If you’re guilty of something like this, be prepared for your fans to lash out at you. They follow you for relevant content, not to be inundated with the same crap that every media source on Earth is already reporting.
6. Not having control of your social media accounts
We are not talking about hackers; we are talking about not taking control of your social media accounts on the day you fire people from your social media team. This can lead to all kinds of awkward situations where things that shouldn’t be sent out over your accounts are indeed sent.
7. Getting too close to sensitive subjects
Having contests on your social media accounts is great. Having contests that basically say ‘RT this message and we’ll feed starving children is not a great idea. This is exactly the situation that Kellogg’s the UK found themselves in, and they were routinely beaten for it. If you’re going to help a worthy cause, do it, don’t hold your fans and followers hostage.
8. Trying to deny mistakes
Mistakes will happen. You will accidentally post personal things to your business account; you will accidentally send out porn to your fans when you meant to report it; you will be a human. Trying to go into the ‘delete and deny’ mode will only cause further harm. Anyone can take a screenshot and prove you wrong, admit your mistakes and work to correct them.
THINGS YOU SHOULD HAVE IN YOUR STARTUP BUSINESS PLAN
We know how instantly the world is changing and how rapidly new businesses are evolving, leaving less space to the already existing ones. New competitors are bringing the unorthodox challenge to the market, and novel brands are taking over the places of old brands. This is forever rushing, and the never-stopping world is bustling with each passing day, and the ones who know how to execute a master plan for their business according to the ever-evolving marketplace have more chances of survival.
A lot of people claim that a business plan isn’t as crucial as it seems which is ferociously incorrect. A business can be created and launched within a month – considering the speed through which competition is moving – but it has zero chances of staying alive under the spotlight if it does not have a strategize business plan.
A business plan is an essential element of every business. How? Because it is the backbone that provides functions like coming up with a legit business idea, foretelling the potential hurdles, setting ultimate goals, measuring your success level, planning your business growth, as well as securing loans or investments from the bank for your business. Considering the importance of a business plan, we have gathered here five crucial things that every business plan must-have.
Execute Business Idea and Goals
Start things off by creating a detail-oriented document about what your business idea is and how you are going to achieve it. Your business idea may not be completely different from any other business because of the constant competition, but it should have some inimitable elements in it that should bring buyers to your platform on a daily basis.
Don’t just let loose arrows in the darkness – come up with proof that your concept is going to stand out in the market. Write how much money you are going to need and why the customers would want to keep buying your products. If it is possible for you to include things like market studies, sales numbers, and crowd-funding campaigns into the big picture, please do that. This way, your investors would like to keep on listening to your plan without asking you for breaks out of boredom.
Know Your Customers
One of the most common mistakes budding entrepreneurs make is that they lose sight of the right customers for their products in the beginning. We know it is hard to exactly pin down your audience on the first go, but presenting your ideas on consumers’ insight and alter things as you progress is always a good proposal. Do your research and figure out your kind of audience. Share ideas on how you can contact them or trigger them to come to your website and buy your products. You can also write strategies about the kind of customer support service you will be provided after your business is launched.
Establish Market Opportunity
Always keep your value proposition highlighted – figure out how fast your field is going? How big is the target market? And how are you going to deal with the threats that might come knocking your way? Conduct realistic research and make sure to include every necessary detail if in case your investors ask for more. Backup or update your business plan with information that you can get from the chamber of commerce or industrial associates and add that in your proposal as well.
Analyze Your Competition
You need to do your research on the businesses that are already blooming in the market. What are they selling? How many consumers are knocking on their doors? Why are their products popular? How can their products harm your reputation? How could your products attract customers more? Why would customers like to buy your products when they already have your competitor’s products in the line? How many other companies are selling the same product as you do, and how will you be different from them? These are the questions that you need to prepare for. Even include indirect competitors into consideration – you never know when they could come to challenge your business down the pike.
Present the Numbers
This all game is for money, and you can never desert it. It is time for you to up your master plan by providing your financial viability. Plan everything that includes numbers – from paying your employees to the cost you are going to spend on the market. How much creating a product will cost you? Does hiring new employees will boost up your sales number? You should have your financial forecast up and running for at least three years. The starting 12 months should have more expressive details. Adding this to your business plan will do wonders for you.
Lastly, execute a summary by adding all the eminent pointers from your business plans in it because investors prefer to look at it before listening to or reading your thorough business plan. If your summary covers all the effective and innovative suggestions, it will definitely keep your investors’ attention unscathed, and your business will be able to resonate with their expectations.
For more business tips and insights, visit Stealth Agents.