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6 things to avoid when starting a business

Friday 22, 05 2020
6 things to avoid when starting a business

The founder and CEO of Bussinessknowhow.com, and also the CEO of Attard Communications Inc, says that using all the money and effort is not enough to help the company succeed if you fall into these common traps when starting a business.

Failure to come up with a business plan

If in the first place, your company does not need to raise money from investors or try to borrow money to start a business, then you probably think you do not need a business plan.

Or for those who know what they want and need to do, most will think that there are more important things to do first than spending time collecting data and writing them all on paper.

However, you failed to realize that a business plan is not merely a document used to raise capital for businesses, as it is also a business roadmap that will help you not only focus on your goals but also realize them.

For example, if you want the company to achieve 100,000 USD in sales in the first year, the business plan will help you estimate the number of customers needed, how to attract them, and calculate the minimum sales cost the company needs. Without those pieces of information, it will be difficult for you to make your sales goals a reality and make a profit from them.

Lack of cash in the business process

While the business planning helps estimate the amount of investment, in fact, this amount will fluctuate significantly if the company has unexpected financial problems or business failures – factors that may easily cause customers to turn away from the company and change the cash flow.

Therefore, to minimize the risk of falling into this trap, it is advised for you to try to find out how much money competitor companies usually start with as well as the transaction logs (or other resources) to calculate the expected average annual revenue of the company.

>> 
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6 things to avoid when starting a business

Underestimating marketing

Regardless of the quality of your goods and services, it will be difficult to consume them if customers do not know or remember their existence.

To avoid this trap, you need to develop a good marketing plan by identifying the target audience, diversifying their approach, and calculating the costs needed for a marketing campaign.

You should remember that marketing is an ongoing activity, not a one-time-only job that only needs to be done once.

Focus on opportunities without considering the feasibility

The success of any business is more or less related to their ability to seize opportunities and how they use them from time to time. However, evaluating the viability of these opportunities is also very important and the fact shows that you should only take advantage of opportunities if there is a link between them and your current business goals and whether your business is also ready to adapt to the changes.

At the same time, you need to consider carefully the factors including human resources, financial capacity, performance, and customer base, etc. and consider whether this new opportunity is appropriate for the business and adversely affects other activities.

You are recommended to try to expand resources, explore all ideas that can help you become an expert in your core business. For example, customers will also feel more confident if you can both sell web design services and understand the content needed for their website.

Lack of flexibility

In a highly competitive business environment, in addition to maintaining a stance, businesses should be sensitive to catching trends, thereby be flexible in the market approach.

The reason for this is that your business plan may only be suitable for small local businesses while most of the market profits "flow" into the pockets of large companies.

In addition, when someone comes up with new business plans, even if you do not want to change, you still should consider them for the benefit of the company.

Not taking advantage of online tools

Whether we like it or not, businesses today still need to be found on the internet and especially need to appear more in places that are easily accessible to customers. Even if your company's strength is Word of Mouth (WOM) marketing, it is still likely that consumers will learn about your products and services on the internet before they contact you directly.

Therefore, while you cannot control everything that customers are looking for, you should also control what is within your capabilities. At least your company should have a website, which acts as a detailed social profile and appears on the list of other search engines.

Source: https://khoinghieptre.vn/6-dieu-can-tranh-khi-khoi-nghiep-kinh-doanh/

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