Getting started with a new business can be quite exciting, and if you’re passionate about what your business will be doing, there’s a good chance it will succeed at the outset. But unfortunately, it’s possible to get so caught up in the moment that you end up trying to do too much too quickly with your business and forget to plan for different events. There are five mistakes new business owners make that you can avoid and hopefully keep your doors open for the long term.
1. Not Conducting The Right Market Research
If you go into business too fast not knowing much about who you’re targeting or what kind of experiences they’re looking for, you’re not as likely to succeed in business long-term. Every customer has their own shopping habits and various demographics of customers like certain experiences while shopping or subscribing to your services. You need to take some time to get to know them.
2. Trying To Fix What Doesn’t Need To Be Fixed
Sometimes business owners see trends that other companies are doing or get ideas to phase out or simplify certain things in their company when there’s really no need to do so. Techstyle Fashion Group CEO Adam Goldenberg once said in an interview that he was not going to change a certain feature about his company’s website even though his competitors were doing so because his customers loved that feature. Making changes for the sake of change is likely to cause customer backlash.
3. Not Using Pre-Employment Assessments For New Hires
Hiring the right people in your company is essential, and here is where you want to have people on your team who know what they’re doing and not just family or friends you know. As Forbes states, pre-employment screenings can help you find the right employees and can contribute to good morale overall in your company. You can use them to look beyond simply employee educational training and look at their personality, personal strengths and overall compatibility with your company. According to The Hire Talent, “If, after your assessment of a candidate you decide they’re not the one for you, you don’t have to tell them immediately once you’ve come to that decision, but you should keep them in the loop within a few days of deciding.”
4. Not Adequately Budgeting
You have to be careful as a business owner with what you invest your capital in, and making sure your loans are getting paid off. You might have big plans for what you want to do with that money, but if you try to use it to grow your business too fast too soon, you might put it at risk. Business budgeting to make sure you’re keeping it in good credit standing and paying your legal obligations is something you don’t want to make the mistake of neglecting.
5. Not Following Up With Customer Leads
Good businesses are those who have customers coming back over and over again because they love what a company does and how the company’s website looks. In order to get greater customer retention, you shouldn’t forget to follow up with them if they’ve visited your store or become a member on your website. Make sure they’re sent a thank you for their business with you, or maybe offer them some special discounts on their next visit. But the bottom line is they like to know they’re appreciated.
Running a business correctly certainly takes some risks on your part, but not without planning when and how you’ll take them. It is also helpful to consider consulting a business coach who may be able to provide your business with some tips and offer a new perspective. But ultimately, you just want to make sure you have backup plans for when your original plans don’t quite work out.