The CRC National Blog
What Not To Do – 7 Common Pitfalls For Small Business Startups
Posted by admin on May.31, 2012 in Uncategorized
1. Skipping the Planning Phase
Planning may be tedious, but without a solid plan for your business you will be operating in the dark. The most important plans to consider include a business plan, a financial plan and a marketing plan.
2. Not Setting Goals
Goals can give you a direction when you first start your business, then keep you on track during the day-to-day operations.
3. Undervaluing Your Products or Services
Under-pricing your products and services is dangerous because it undermines the value you bring to the table and opens up the possibility of resentment and frustration. Recovering from undervaluing your goods is a long road, so be sure to research the pricing in your market thoroughly as you start your business.
4. Avoiding Technology
As small business owners, technology provides efficiency, opportunity, and cost reduction. New technology can be intimidating, and require time to learn, but an unwillingness to adapt to new technology advances will hurt your business.
5. Being Afraid of Marketing
Marketing can take many forms from word of mouth referrals, to traditional advertising, to Internet marketing. There aren’t any set rules when it comes to marketing; the best type of marketing for you depends on your business and your target audience. The mistake is assuming you don’t need to market and that business will come to you.
6. Not Knowing Who Your Ideal Customer Is
One vital part of any successful marketing campaign is understanding who your ideal customer is. It’s not enough to create a marketing budget and try a little bit of everything. You need to do some market research to identify who you are trying to reach, where you can find them and how they will react to your marketing activities.
7. Overspending and/or Underspending
Starting a business doesn’t have to require a large investment, but some new business owners feel that they need to spend a lot to purchase the best, from marketing help, to equipment, to software. There are usually other, less expensive but equally viable options available, if you’re willing to do the research. Creating and sticking to a business budget to curb overspending is always an excellent idea. Some small business owners who don’t overspend fall on the other end of the spectrum and refuse to spend much of anything. While there are certainly ways to start and grow a business with limited funds, going too far and not investing any kind of capital in your business can severely limit your potential for success.
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