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. Mismanaging Employees and Confusing Expectations
There are few things more detrimental to a fledgling business than a manager who doesn’t know how to manage properly. It’s hard to overstate the kind of damage that a bad manager can do to a team. As pointed out by the Center for Management & Organization Effectiveness, modern managers serve better as coaches than as authority figures. Employees want to be able to relate to and get inspiration and accountability from their managers, not just marching orders. You need to be able to see your management as part of a holistic whole, not as an arbitrary figurehead position.
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. Franchise Gator says that one of the most important sources of information, especially for prospective franchisees, is the Franchise Disclosure Document, or FDD. 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, and mistakes are bound to happen. But as long as you make a conscious effort to avoid mistakes and fight for ongoing improvement, you are sure to overcome obstacles in your way. As Creative Safety Supply explains, “Making ongoing improvement in performance, commitment, strategy, and process all help build up the company’s bottom line. Facilities that focus on continuous improvement become more competitive over time and can maintain their advantages in their industry.” If you want that extra edge to make your business successful, consider consulting a business coach who may be able to provide your business with some tips and offer a new perspective.