When you’re starting your own small business, it might sometimes feel like you’re treading on uncharted waters. That’s perfectly normal. And while mistakes are bound to happen, there are quite a few types of blunders that can seriously hurt the bottom line.
No matter what type of product you’re planning to sell – whether it’s quality fruit-infused water or revolutionary exercise equipment – be sure to avoid these mistakes.
Inaccurately pricing your offerings
For many fledgling entrepreneurs – and maybe some moderately experienced ones – pricing products and services can be tricky.
If you have something precious and you price it too low, you risk undermining the success of your whole business. On the other hand, pricing it too high when the product doesn’t warrant it, can turn away that crucial first cohort of customers.
To avoid both of these outcomes, you have to invest a lot of time and effort in doing market research. Find out if there are already other businesses offering the same type of product. If there are, is there an area where they need to improve- where you can make your mark?
Additionally, make sure to uncover critical information about consumer behavior that can build upon your initial business idea.
Shying away from marketing efforts
Entrepreneurs can have a foolproof idea, but if they don’t get the word out there, then that idea is likely to stay relatively unknown.
When starting a venture, don’t expect the business to market itself. You have to make a deliberate and strategic effort to inform your target market. And just because you identify as an introvert doesn’t mean you can’t do a decent marketing campaign.
There are a ton of tools at your disposal – from social media and other digital marketing tactics to old school advertising and word-of-mouth. Use these channels to start gaining buzz around your business.
The more people are aware that your products or services exist, the more leads and conversions you’ll generate.
Not choosing partners carefully
Sometimes a one-person show doesn’t work. You’d be right to seek out capable business partners. However, be cautious about who you decide to work with.
Make sure that you align in terms of vision and values. While you don’t need to have an exact fit for every aspect, you still need to have a high degree of alignment. If you tough it out with an excessively disruptive co-founder or partner, your business might not last that long.
Additionally, you could also overrecruit partners – four and above is a bit too much. This can also be detrimental as there would be too many people contributing their inputs. Too many cooks in the kitchen can potentially stifle quick and nimble decisions.
Becoming a penny pincher
It’s understandable for entrepreneurs to take a defensive approach when it comes to expenses – especially during the current economic climate. That being said, excessive underspending can suffocate your business.
For instance, you’ll be less likely to take advantage of new opportunities (e.g., collaborations with other brands, expansion to a new market), and you’ll be less capable of improving your product or service.
Spending in itself is not wasteful if it leads to better positioning and further innovation.