5 Small Business Pitfalls to Watch Out For

Starting your own business requires juggling a few risks and exercising the right amount of caution- push towards an extreme and you’ll find yourself paying the price far too quickly. Particularly with small businesses, this can lead to quite the fix so here are some of the most common pitfalls you need to avoid if you want to be a successful entrepreneur:

No Business Plan

Of course, this has to start with the most blatant pitfall of all- a lack of a business plan.  Diving into your venture with a pocketful of determination and innovative thinking isn’t going to take you very far without a strategically laid out business plan. This would ideally outline your revenue streams and analyse factors such as their variability. Don’t forget that flexibility is also key to a good business plan because trending patterns are always on the move and you need to be able to adapt with it.

A Flawed Marketing Strategy

You probably don’t need this spelled out but marketing strategy is, beyond a shadow of a doubt, what will bring in the crowds. While setting up base and managing your finances when starting off will require a lot of focus, you absolutely cannot lose sight of a marketing strategy from the get-go itself. Identify your marketing channels and establish your KPIs. There are various modern channels for entrepreneurs to make use but don’t forget more conventional methods such as email marketing for small business, which still have a significant amount of reach.

Jack Of All Trades

As a small business, there’ll be a time where you’ll fancy yourself a jack of all trades. This is the worst move to make. By doing so there’s only so much effort you can be giving each aspect of your company and at the end of the day, overall business productivity will be reduced. Figure out where your alleys lie and stick to them. Hire a great team for the rest!

Not Finding a Target Customer

It’s all well to dabble with your marketing strategy and interact with different types of consumers to see where your options lie but this will only get you so far. It would be far more productive and cost efficient in the long term to settle on a type of customer.

Rapid Expansion

Things might be going great- you have a solid customer base, you’re reaping the profits and expanding the business might seem like a great move but the last thing you want to do is jump the gun. With growing your business comes a whole new ball game, and rapid over-expansion is an easy mishap. To find out if it truly is the right time to expand, take an in-depth look at your financial records. Analyze your cash flow, inventory etc.

Starting a business isn’t easy so don’t make it any harder on yourself. These are the most common pitfalls you’ll find yourself in danger of running into so make sure you don’t fall for any of these setbacks!

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