Running a small business can be tough and you’re bound to make mistakes no matter who you are - and that’s alright. However, you can avoid some errors by learning from the experiences of other small business owners. Here’s a list of common mistakes that entrepreneurs may make:
1. Lack of business planning
A business strategy helps you, as the business owner, to guide your start-up and plot your business's growth for the future. A business strategy is an essential part of any business venture, and without it, you’ll struggle to make decisions, get loans, or show potential investors your vision and bring them on board.
2. Ignoring SMART goals
Setting goals helps give your small business some direction. They enable you to keep track of your long-term vision while you handle the daily operations. By making sure your goals are SMART (Simple, Measurable, Attainable, Realistic, and Time-bound), you outline specific steps that will take you to where you want to go.
3. Spending too much or not enough money
Money is an entrepreneur’s biggest concern and it’s one of the main reasons why they start their own small business. Making and saving money often takes priority over most other things, so you must use your cash wisely.
One mistake new businesses make is being afraid to invest in resources such as staff, products, or services. These are the vehicles that will drive your company to success and keep your clients happy in the long term.
At the same time, it’s also important to save money in smart ways to avoid bloating your expenses. A great way to save money is to get a small business insurance quote to find out how you can save money every month.
4. Undercharging for products and services
Under-pricing is a real issue and it can be from a lack of confidence or fear of rejection. Many businesses tend to undervalue their products and services. As much as you want to attract a wide client base, don’t do it by under-pricing as it undermines the value your business holds. Explore the market, do competitor analysis, and identify the best price entry point for what you’re offering.
5. Avoiding new technology
Technology provides new opportunities for small business owners as it can help you to be more efficient and can even help you save some money. It may be intimidating and require to learn, but adapting to technological advances can help you be more flexible.
6. Not having a website
We live in the digital area and so there’s no excuse not to have a website. As a new business owner, you cannot afford to not own your digital presence. Creating your website doesn’t have to be an intimidating experience as many platforms come with easy-to-use web templates. If you want to go along the DIY route, then some companies will design, host, and maintain your site at a reasonable cost.