According to StatisticBrain, In 1999, nearly 800,000 businesses started, and by year end over 700,000 had closed shop. By 2010 the closure rate was nearly equal to startup rate.
Indeed running a business can be kind of a big deal especially when starting out but some of the challenges entrepreneurs face in running a business can be overcome with the right information, education, and mentorship.
In this post we shall address 10 major mistakes business owners make plus how to overcome them and succeed in business.
1. Poor Business Name Ideas
Your business name is important. Check how how much it cost tegna Inc. to buy domain name, cars.com. Actually, $872m was spent to acquire cars.com. Don’t believe me? Feel free to check. Your business name is your identity, it’s how customers can find you via search, social media, word of mouth, etc. There are tools like ‘business name generators’ that can help you generate business name ideas in seconds.
2. Not Fully Understanding their Market
Never invest in a business you don’t fully understand. Some people want to become entrepreneurs once they have spare money to spend without having full understanding of what they are about to venture into. This is counterproductive. One wrong move and all that money could go down the drain.
3. Taking Unfavorable Loans
Some people after listening to motivational talks, are inspired to try entrepreneurship, but with little or no requisite industry knowledge.
This could lead to desperate borrowing from family and friends and even sourcing of funds via loans with extremely unfavorable repayment conditions like exorbitant interest rates and very short tenure. Such business experiments with borrowed monies hardly end well.
4. No Website/Social Media marketting
There are about 2 billion websites (and counting) worldwide with over 3.5 billion Internet users 1.79 billion of whom are projected to shop online to the tune of $2.84 trillion in 2018.
Social Media should form part of your core marketting strategy, there are billions of people on social media every day, every week and every month. Over 65 million businesses are on facebook or own a Facebook Page. It’s the digital age, don’t be left out.
5. Small Business Mentality
Every big business was once a small business. While at it, maximize and enjoy your smallness but do not be trapped by the small business mentality.
Think big and plan big with your lean resources, if you must grow big you need to stop thinking and acting like a perpetual small business.
Business mistakes can be costly. Learn how to identify and mitigate them. Every smart business owner should take note of these business mistakes and take steps to prevent them.