Starting a business from a concept or idea is no easy task. Currently, the failure rate of startups is high, with an average of about 50% of all startup companies in South Africa failing within two years due to the inexperience or inability of their owners. 


Considering yourself with the bottom line isn't enough to keep a business afloat. With the surplus of factors that a founder has to consider, including running in a dull economy, it's a miracle that several new companies get off to a running start. 


That being said, what is the proverbial "low hanging fruit" when it comes to developing a business? 


Andrew Watson, a marketing expert and business owner from Brandright, breaks down three critical mistakes that he has witnessed cripple startups. 


1 - Building your business not the brand. 


Watson states that building a product, service or offering in isolation is most business owners first glaring mistake. 


He states: 


"The first job in building a business is the construction of a customer-facing brand reflecting key marketing fundamentals. This includes identifying and developing your target market, competitor set, customer benefits, what makes you different and special, your purpose, what you stand for, how you look and your values and personality."


Watson believes that most importantly, spending any cash on marketing efforts before your business foundations are solid will ultimately result in a complete waste of budget and time. Furthermore, these two aspects are in short supply during the initial phase of a startup's launch. 


2 - The lack of a comprehensive marketing plan.


A marketing plan is a vital document which aids businesses in connecting their freshly developed brand to their primary target audience. It could be viewed as a strategy shopping list which outlines the best ways to spend your marketing budget in order to achieve your goals successfully. 


Watson states: 


"The marketing plan should be one of the first documents you compile for a new business, and it can be critical in the process of securing investment in your business or placating your investors in terms of your focus and growth areas'."


Watson goes on to say that this is something which many small businesses lack, who believe that a marketing strategy requires a large sum of cash, which most of them don't necessarily have. 


3 - No website. 


It's a no-brainer that a business website is the focal point of all online activity for your customer base. Potential clients commonly seek additional information about a business from their company website, contact information, services offered, team details and more. 


Having a company website offers clients more credibility and enables customers with the ability to get familiar with your business before they begin interacting with the owner. It's a vital resource for the growth of a business and something that's often overlooked. 


SME's and small businesses have massive potential in driving South Africa's economy. They're imperative for job creation and the future of our nation but often receive little support, especially in the realm of marketing.