Building a business from scratch is certainly not an easier task. As a new entrepreneur, it’s evident that you’ll make a lot of productivity mistakes and face failures along the way, but it’s not a big deal as long as you are ready to learn from your mistakes and avoid them the future. Recent studies show that 40% of startups fail within the first five years of operation as business owners’ focus too much on their hopes and dreams of success rather than innovating new ways to maintain productivity. Thus, new entrepreneurs must devise a robust strategy and set clear goals.
By reaching out to multiple SMEs, growth strategists, financial advisors, and business consultants, we have curated five productivity mistakes new entrepreneurs make and also listed out ways to avoid them.
1. Not Having a Robust Business Plan
This is one of the most common productive mistakes every entrepreneur makes. Trying to promote a business without a sound business strategy can no longer help companies to maintain productivity and drive sales. Perhaps you may get lucky and end up with the results you want, but chances are you’ll waste a lot of time and capital in the process. Having a sound business strategy or plan is imperative for business owners to achieve their short-term and long-term objectives.
Start by identifying what set’s your business unique from your competitors. Keep a close eye on key competitors to benchmark products or services, identify market opportunities, and recognize evolving best-practices. Also, focus on creating a unique selling proposition or USP to gain a competitive advantage.
2. Trying to Sell to Everyone
Trying to sell products or services to everyone is merely a waste of time and resources for businesses. In today’s competitive marketplace, generic messages are less likely to resonate with audiences than personalized communication, which is why targeting in marketing is so important. Target marketing is about directing business development efforts toward prospects that offer the best potential.
So, instead of trying to reach an entire market, brands can leverage targeted marketing strategies to connect with a specific, defined group within the market. Different forms of target market segmentation such as behavioral, psychological, demographic, and geographic segmentation can be used to get high-quality leads and build deeper customer loyalty.
3. Ignoring the Competition
The cutthroat competition in the market is making it challenging than ever before for new business owners to gain a strategic advantage in the market. Keeping pace with what is going on outside your business is an integral part of strategic planning. Some business owners believe it’s best to get on with their own plans and ignore their competitors, while others may have become obsessed with tracking the actions of competitors. Well, developing a better understanding of competitors gives us the information we can use to win more business and retain existing customers.
To start with, you can check out what your competitors are doing online and conduct a SWOT (strengths, weaknesses, opportunities, and threats) analysis. Also, organizations must focus on understanding their advantages and disadvantages relative to others in the market, identifying competitors’ current and future plans, and developing robust business strategies.
4. Not Adapting to Market Changes
Rising globalization, technological innovations, and increasing need for transparency have combined to upend the business environment and given many business leaders a deep sense of unease. In order to adapt, business leaders must keep pace with market changes, identify customers’ changing needs and demands, and quickly act to refine or reinvent their business model. As a business owner, you need to understand how to keep up with changes and adapt to the ever-evolving needs of the consumer while navigating through challenges that you may face.
With a sound strategy and agile project management, you can always find ways to pull ahead. So, make sure your actions are getting you closer to your ideal outcome. Revamp business models constantly and your productivity will subsequently shoot up. Lack of vision and focus could ultimately be your downfall if you let it.
5. Refusing to Try Social Media Marketing
Refusing to try social media marketing is one of the worst productivity mistakes for businesses. Social media is one of the most cost-efficient digital marketing methods used today. By implementing a sound social media strategy, brands can increase recognition and engage with a broad set of consumers.
To get started, set up your presence on social media and begin interacting with customers. In no time, your business will drive quality leads and achieve business goals.
When starting a new business or launching a new product/service, it’s imperative that business leaders must have a customer-first mentality. Yet many new entrepreneurs are so concerned about the capital that they forget the key to having a sustainable business and loyal customers. It’s not easy being a successful business owner, but avoiding the above-mentioned productivity mistakes can help business owners maintain productivity while balancing overall costs.