5 deadly business mistakes most entrepreneurs make and how you can avoid.
1. Failure to have an exit strategy.I'm amazed when most people get started in business for the wrong reasons. Maybe because they want to make money or they want to be their own boss.
Or maybe they lost their job or their boss fired them,and they have been working for their company for the last 15years and they think they know as much about the business as the boss at the company.
At times, their parents passed away and they kind of take over the family business.Or they could not find a job and they have start their own business.
So, they got into business without knowing what the business is all about.
Unless you are planning to work until you drop dead you must have an exit strategy.You must have a clear and specific reason for starting the business.For instance,what do you hope to get out of your business and how do you want your business to serve you?
Are you going to sell the business for a huge sum and retire? Are you going to keep the business and cash out your time,maybe delegating the day 'to 'day and make a huge passive income?
Will your business be a cash cow for you? Or are you going to franchise your business and collect franchise fees like McDonald and King burger? Or maybe you have bigger goals. You are going to take your business public who knows?
You need to know all of these before venturing into your own business.
2. Another deadly business mistake most entreprenuers make is misunderstanding the Importance of marketing. Most businesses operate like a 3-legged stool. you need all three legs, otherwise the stool falls down. The three legs of business are: The products and services,the operation and marketing.
You can have the very best products and services in the world,unless you let people know what you do,unless you market your business,you are not going to have a successful business.
The huge misconception among entreprenuers is "If you build a better business,the world will be a path to your door".
Something like that,right?
The truth is you don't need to build a better business.What you need do is spend time promoting your business.Do not delegate marketing to anyone else,because marketing brings in the money.
Marketing is your business!
No marketing,no sales,no business. So, focus you time in marketing,because revenue will take care of a lt of problems.
3. Most entrepreneurs promote Image advertising instead of direct response advertising.Entreprenurs listen to the advice of sales reps who tell them"You've got to run this ad 15-20 times to create a top of mind awareness.If it doesn't work-you've got to run it 15-20 times".
Is that not normal advertising?
Most entreprenuers are not tracking it and they just keep running it again and again and again.The secret is you cannot multiply zero.If you are not getting a response today,you will continue not getting a response,period.
Your best option is direct response advertising.This simply means that the advertising dollar you spend is measurable and accountable.If you spend $10 dollars how much are you getting back in dollars 'not "oh,I have created my top of mind awareness".
Image does not pay bills!
You need cash, so you must know the return on your Investment.Marketing is all maths.It's not about creativity. you spend a bucks,you make two bucks back.
4. Failure to think outside the box.
when you open the yellow pages you will notice that all the ad basically,
look the same. The point is do the opposite of what your competition are doing 'you will do well.
Think outside the box 'be a little crazy,be a little outrageous,because nowadays we are bombarded with advertisements and marketing messages everyday. You have to do something unique and special to catch people's attention.You have to be a little different.
Look at it this way,if you think outside the box,you do somethting that is different from your competition and it does not work.What are you going to lose? You can always go back.But you know, it is likely it will work.
5. Marketing to everybody.If everybody is your customer,nobody is your customer.Targeting a niche market is probably the smartest way to market.
Mass marketing cost so much.
About the Author
David Izulu is an Online business consultant and Information Marketer.
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