Running a business is a daily roller coaster ride of emotions, activities, and problems to solve. Regardless of your level of flexibility and perseverance, the best choices and a solid marketing plan may still fail if market conditions are not ideal for growth.
Clawing your way to the top
As you scrap and claw your way to the top of the success heap, know that you will most certainly make your fair share of mistakes, and that learning from those mistakes will be an essential part of long-term growth and stability. Stumbling and fumbling your way through your startup is necessary, but there are some “bad choices” you can avoid as you wade through the waters and learn to swim proficiently.
Avoid these business mistakes
Failing to do research – One surefire way to destroy your business is by failing to research your product and target market. Committing to a research-backed approach will allow you to truly understand what you’re getting into. It may be tempting to get into a trendy industry like virtual reality, AI, or food delivery, but these industries are unlikely to be a stable source of income as you focus on long-term growth.
Focusing too much on funding rather than running the biz – A common misconception held by many business owners is that if you keep raising capital, your business will eventually succeed. The problem with this belief is that it makes you entirely dependent on funding. If your budget is cut, then your business will eventually collapse. Having nothing but excess funding creates a false sense of security. It does nothing to prepare inexperienced owners with the building and operational skills they actually need to run a business. Business owners should focus less on funding, directing their attention instead to developing and marketing an excellent product and service that customers desire. Loyal customers bring funding with them over and over again.
Failing to learn effective marketing techniques – An effective marketing strategy is the closest thing to a business hack that we can give you. Companies need to put as much energy into marketing and promotion as they do in creating the products and services that sell. Place some attention on the business of pushing yourself out to the world via various media outlets, and you’ll see the profits roll in.
Failing to vet funding sources – Beware of unexpected sources of funding that can come back to haunt you as you run your business. Inflated investors often assume that a relationship with an entrepreneur is a “partnership.” A newbie may be tempted to accept a gift or grant and think that no strings aren’t attached, only to find out later that in order to keep receiving funding, he/she must rescind a measure of control over the business. When entering an agreement with a potential investor, ask many questions, draft an agreement, and be very clear about expectations on both sides to avoid any unpleasant power struggles as your relationship progresses.
Failing to create a solid team – One of the hardest things to do when running a business is attracting and retaining quality employees. Your company’s success will be determined by the value of your people; attracting and then getting the most out of your hires will be an essential part of lasting growth and success. Take these essential steps to ensure that you are making the most of your time as you hire your dream team:
Define roles and responsibilities of employees clearly
Outsource if possible
Define and communicate core values to build community
Define expectations and behavioral attributes of valued employees
Motivate and build relationships
Communicate gratitude and “take care of the person”
The more your employees feel heard, valued, and respected, the harder they will work to make their dreams–and your dreams–come true.
Let us help!
MaxGroup Business Solutions has people who have been where you are. We’ve slogged through the muck and mire to build business empires worthy of recognition, and now we’d like to do the same for you! Cutting-edge business strategies, passion for quality, and a commitment to our valued customers make us one of the best organizations to collaborate with for future success. Contact us today to see how we can up your game; visit www.maxgroupbusiness.com for more information.