Business owners are often scared of making mistakes. We know that one deadly mistake is enough to end the business and make it fold up and accumulate debts. But what should you avoid as a business owner?
What are the Deadly Mistakes that can end your business? Once you know what to avoid, you will make better decisions and save yourself time and energy.
Just like every other aspect of our lives, our business ventures must be guarded, so that we do not regret owning a business. Frankly speaking, some mistakes can be corrected. Other mistakes can affect a business very badly.
Without further ado, I will go through these avoidable mistakes one by one.
14 Deadly Mistakes That Can End Your Business
I have compiled a list of 14 mistakes that you should look out for, in order to avoid if you are serious about being a successful business owner. I have explained them below, but here is a list of them:
- Not taking your time to understand the nitty-gritty of the business
- Not taking your time to choose and employ capable hands
- Mixing Business Money with Personal Money
- Not meeting up with agreed deadlines with clients
- Ignoring Multiple complaints
- Being too scared to take risks
- Setting impossible goals/ Not writing your goals
- Not welcoming feedback from clients
- Not taking advantage of the Power of Social Media
- Reducing the value of your products and services
- Excessive Spending
- Not spending enough
- Lack of commitment
- Selling the wrong product.
And here’s the explanation:
1. Not taking your time to understand the nitty-gritty of the business:
Going into a business just because you see that others doing well in it, or because you feel that there is money in it can lead to a very loud failure. If you try this as an e-commerce business owner, you will regret it!
It is therefore very important to take your time to understand what the business is about. Study the industries already striving well in that business, see what they are doing right that is bringing them success. Learn from their mistakes. You might not be able to survive if you run your business using the trial-by-error method!.
2. Not taking your time to choose and employ capable hands:
For your business to strive well, you need to employ people that are knowledgeable about your industry.
Employ people that have enough experience to run the business alongside you. Employing cheap labor in the name of managing costs will definitely do more harm than good.
And also, not spending enough resources in getting the best in terms of staffing is a very bad practice. What usually happens is that in the end, they will not perform optimally and because of that, you will gradually lose potential clients due to poor customer relationships.
3. Mixing Business Money with your Personal Money:
It is not financially advisable to mix the income used for your business and the returns with your regular . or should be separated.
Reason being that with time you would spend almost all if not all the income got from your business which could lead to debt or even failure and closure of your business. Because you wouldn’t have the capital to maintain the business and even to pay your workers.
You should create a separate account for the money meant for the running of your business and your other income.
4. Not meeting up with agreed deadlines with clients:
There are two things you should avoid with so much passion. The first is anything that can happen that will give you a reason to apologize to clients and giving so many excuses.
Some clients will understand. But not everybody can keep up with bad service. Some clients will simply never come back. Because of that, your income will be affected, and you will have a negative review.
To run a successful business, to keep your constant customers, and to earn referrals, you must meet up to deadlines given to clients. Nobody would want to work with a company that never keeps to its word. If something unavoidable happens, however, you owe it to your clients to reach out to them as soon as possible, apologize and give them the reasons why. If possible, tip them or send them a gift.
5. Ignoring Multiple Complaints:
Your services may not be excellent enough. Often, I have had clients complaining of one issue or the other and with time their patronage reduced drastically.
As I earlier mentioned in point 4, avoid keeping your clients waiting. Whatever service your business is offering, ensure that you avoid constant complaints from your clients. Try your best to meet up the deadline you or your employers gave to them.
6. Being too scared to take risks:
Fear is usually a major factor that ruins a lot of businesses. I have had several opportunities in the past when I was scared of taking risks, and as such lost many opportunities that could have opened other doors for me.
Leaving the trend of being an employee under a person and starting your own business is a risk on its own. You should take as much risk as possible to see that your business does well.
When opportunities come your way, ensure that you don’t miss them and encourage your employees to do the same, once they have thought it through.
7. Setting Impossible Goals / Not Writing Your Goals:
Before the start of any business, there should be written goals and plans on how to achieve them.
Starting a business without having a goal in mind that you plan to achieve is a deadly mistake. Setting goals would really help you understand what you need to do.
8. Not welcoming feedback from clients:
The thing is, some of us are so busy optimizing our business process without even listening to our target audience. That is another deadly mistake that can end your business!
Paying attention to reviews from your clients would help you know how to serve your clients better, it would help you know where to improve on. And you would also know the things that the clients are pleased with that you should continually keep doing.
You should put your clients as your topmost priority because, without their patronage, your business would run down.
Doing business in the 21st century without using social media is like winking at a lady in the dark. You know what you are doing but no one else does.
Not having and using social media for your business can be stressful in terms of advertisement and marketing your Company. You would have to manually advertise your Company which isn’t always bad- but you will obviously not reach a lot of audiences as you would do with using social media.
Social media helps you market yourself and it helps you reach a wider audience. It also helps you keep in touch with your customers and helps your customers easily keep in touch with you.
The word is now digital, you can reach a wide audience overnight without leaving your office. Take advantage of the social media space, hire a social media manager and run paid adverts.
10. Reducing the value of your products and services:
Sometimes, the fear of failure and lack of trust in your abilities can cause you to underprice your services and products. This is a dangerous path to take since it undermines your unique value.
You will have to deal with the long-term consequences of undervaluing your goods, because most customers that are already used to the price of your products may not accept a change in the prices.
Before you place a price on your products or services, you should investigate your market thoroughly to find the best price entry point. Do not lower the value of what you are offering to fit the budget of a minority!
11. Excessive spending:
The risk of excessive spending is high when starting a new business. Some business owners believe they need to spend a lot to get the best marketing help, the best equipment, the best software, and so on.
LM*O. You need to start small. It is very unwise to spend too much, especially when you’re just starting out.
You must research the types of tools useful in your industry and list out the most important ones you need and purchase them.
12. Not spending enough:
Now, there is the direct opposite of excessive spending, and this type of business owner refuses to spend enough for their business.
There are many ways to start a business with a limited budget, but ignoring your business and not investing any capital can lead to failure or even closure. You need to spend money to get more money.
13. Lack of commitment:
Business owners need to have a serious sense of commitment to excellence, drive, and dedication if they want to see their business succeed.
Businesses fail because owners are not willing to sacrifice, invest time, and face challenges in their daily lives.
14. Selling the wrong product:
Having a well-designed website, great team members, even the best business partners. But you still notice that no one is buying from you, rather you see them going to the other companies around you.
The problem could be with your products. While starting up your business, you probably didn’t make enough research to determine which products are right for your business.
Instead, you probably saw other companies selling those products or services and you felt that since they are all doing well with it you would also.
You should check the right product that will give your customers what they need at a price they can afford and will allow you to make a fair profit. Talk to potential customers and sample your product to get feedback.
At the beginning of starting a business, it can be overwhelming to think about everything and make all the decisions to initiate a business. The pressure can cause you to make bad decisions that can hurt your chances for success, or even set it back.
When you think of starting your own business, remember that it’s a process, not an event. If you do the research and the thinking and avoid the mistakes discussed in this article, you will have a significantly greater chance of succeeding in your endeavor. Did this help you? Kindly let me know in the comments section!