A new beginning can be a tough, exciting, and great learning opportunity for entrepreneurs. Anybody can be an entrepreneur, but not everyone manages to make their business successful. Even the most experienced entrepreneurs make mistakes.
Making mistakes and learning from them is a part of every entrepreneur’s journey towards rising up. And you are not the only one, there are many like you. Take a look at some interesting stats about business failures:
- Hardly 78.5% of small businesses manage to run at least for a year. 21.5% of startups fail during their first year only.
- 9 out of 10 startups fail due to some or other reasons.
- 75% of the venture-backed organizations fail to return cash to investors.
These stats clearly show that starting a business is a lot harder than most people think. Rarely is a business with a rock-solid growth strategy and expertise in its niche can run smoothly and successfully.
But why do so many businesses and entrepreneurs fail?
It is always important to gather the right knowledge to help you plan ahead and avoid all possible issues in the first place itself! The reasons run deep. So, let’s take a look at some of the biggest mistakes entrepreneurs make that ruin their business setup.
- Not doing the foundational work
One of the very first mistakes that entrepreneurs commit is to overlook developing the foundation of their business. It is not possible to carry out any marketing or sales activity until you have not built the foundation to support those activities. It is important to understand where your marketing campaigns are directing people, how you will close the sales and other important aspects.
You cannot bring your business to the target audience’s attention if no follow-through can occur. Therefore, you have to ensure everything is done right the first time only by building a strong foundation for your business. Set up the website with the help of a web design and development company, establish a rock-solid business process, have support in place, and make sure you have zero deficiency in your products or services.
- Lack of market research.
Apart from the solid growth strategy, you will have to know what your customers want to get the desired success. Many startups or entrepreneurs go to the marketing thinking that they have a rock-solid product or services without realizing whether people out there really want the product or services or not. This in the end results in a failure. Therefore, it is crucial to conduct detailed market research to understand what your users want and how you can fulfill it.
- Lack of cash flow.
You need money to make money. That is an unrealistic but lethal truth when it comes to setting up and running a business successfully. While some businesses may start getting profit in a short time span, others may need some time to make a profit. Meanwhile, you will need a lot of cash to run your business.
Many businesses fail due to a lack of cash flow. Of course, the ultimate goal of any business is to increase sales and profit. But you also have to be prepared to take some heat considering unforeseen situations and market trends. So, while planning the business, you first have to do some mathematical work to estimate the amount of cash flow needed to run the business.
- Failing to get proper guidance.
Running a business is a team sport and you will need a mentor who can guide you about ins and outs. You are the captain of your boat who is responsible to guide the sailors in which direction to move to reach the destination. But you cannot know the technical know-how of a ship and there you will need someone to guide your team on how to move to the destination you want.
Running a business needs courage, experience, and support. And having someone to guide you could help you mitigate the possible risks you fall into.
- Focus more on social media and forget about other marketing strategies.
Of course, social media platforms are a great tool that can help you increase your followers and let people know about your business. Many businesses invest heavily in social media services and don’t pay attention to the other marketing strategies. Social media can help you create the sales funnel only, and it will not help you convert the visitors into customers.
To do so, you will have to reset your focus on other marketing strategies such as email marketing, pay-per-click, and so on. If you have noticed successful brands worldwide, they have relied on email marketing and other strategies to grow the business.
- Don’t understand the value of time.
Time is money and as an entrepreneur, you must understand the significance of time. Wasting time is an opportunity for the rivals to take advantage of you. Many startups often invest their time, effort, and money in irrelevant activities. It is important that you strictly focus on your time to improve your business. You will get more time later to balance your personal and social life. But in the beginning, you must be focused to utilize time effectively.
A single person does not build a successful startup or business. You must need a team of mentors and subject matter experts to help you grow. Don’t be afraid of failure, instead, learn from the mistakes you have made so far. Looking for a professional web design and development company or growth strategy hacker for your startup idea? We’re a call away to assist you in social media services or with all-in-one maintenance services to keep your business running smoothly…