The success of business depends on quite a few factors: the current economy, successful marketing strategies, need for your good or service, networking opportunities, your tenacity as an entrepreneur, etc. There are endless obstacles facing entrepreneurs and new business owners, and overcoming them is no easy feat, as many failed startups can attest to.
However, there are companies and entrepreneurs who managed to achieve success despite any complications. In order for you and your business to be a success story instead of another failed business statistic, avoid these three startup mistakes:
1. The Market
Time and again businesses fail because they were either promoting their product or service in the wrong market, or they offered a product or service in an overcrowded market. For a business to succeed not only does the product or service need to be effectively advertised to the proper target audience, it needs to solve a problem.
The most successful businesses are the ones that solve a consumer’s problem. The problem with today’s market is that it is inundated with goods and services to solve any consumer’s problem. If you have an idea that is already on the market, what makes your version different? How is it unique and why is it better than the competition’s idea? In order for your brand to be successful, there needs to be a market or niche for your specific product.
2. Cash Flow
One of the biggest reasons why businesses fail is their lack of cash. Many small business owners underestimate the amount of capital it will take to not only launch a business, but also to sustain it until it begins to turn a profit. Statistically, most businesses don’t yield a profit until the two-year mark, which can be a huge obstacle for business owners to overcome.
When starting a company, look to split the costs with a partner and apply for bank loans, small business loans, and even loans from companies like InstaLoan.com. It usually takes time for a business to get off the ground and grow in popularity so don’t let a lack of money close the doors on what could potentially be a thriving enterprise.
3. Ignore Feedback
It’s easy to become offended when your business idea receives negative feedback. It’s also easier to ignore that feedback—which is a huge mistake. While you may not necessarily agree with the criticism, if their feedback has any validity, it would be wise to enlarge your perspective and consider their feedback. There’s a high probability that they weren’t the only consumers to feel that way about your product.
Listening to advice and concerns allows you to expand your idea into something concrete. And, it broadens your perspective on the product and the current market. As the creative genius behind the business, you understand the ins and outs of your product that may have not been communicated accurately to consumers, giving you the opportunity to better articulate your product in both marketing campaigns and to customers.
Avoiding these mistakes offer you a better opportunity at finding success in the business industry.
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