Small businesses are one of the largest employment generators. During pandemics, people have realized the power of small businesses. In the digital world, a new generation of small businesses is coming which are solving the customers’ problem by providing out of box solutions. Most small business owners are first-time entrepreneurs without any business training and they start their business with small capital. If they suffer losses then their lives become difficult and studies suggest that around 70 % of small businesses disappear within 3 years of their birth. I have studied a good number of small businesses and prepared a list of 10 common mistakes made by small businesses.
Here are the common mistakes small business owners make, and how you can avoid them:
- Not evaluating your business idea- Evaluate your business idea in real-life situations.
- Not writing a business plan- Write a realistic business plan which should cover the target revenue, expenditures, risks, etc.
- Not focusing on cash flow and profits- Focus on cash flow and profit from day one.
- Launching the number of products at a time- Always launch one product at a time and make it successful then go for another.
- Not investing marketing- Invest at least 3 to 8 % in marketing. Marketing builds the brand and brings sales.
- Chasing the competitors-Never chase your competitors. Always chase your customers.
- Not ready for delegation — Always delegate non-core works to the team.
- Not researching your target customers- Research your customers and respond accordingly.
- Not having a solid marketing plan- Prepare a marketing plan based on customer research to address target customers.
- No collaboration — Collaboration is key to success. Be ready to collaborate to scale your business.
Avoiding the above 10 mistakes will help your business to become profitable in a shorter period.