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The Five Big Mistakes Made By New And Growing Businesses

It’s a sad statistic that 80% of new businesses fail within their first five years. The following points are mistakes that individually can seriously damage your business. Put all together and you’ll become just another statistic.

  1. Trying To Sell Something People Don’t Want
    It sounds obvious but you’d be surprised.
    Choosing a good product to sell should be easy. It may not be original but if you choose something that people are already buying, maybe give it a bit of a twist and then you go out and market it better than the others, you’ll probably be successful.But that’s not what a lot of people do.  Very admirably, they create something new, something the market isn’t currently providing. Now that’s great as long as there isn’t a good reason why no one else is selling it.Your product may be fantastic. But do people want it? Possibly they should want it. It may be something we should all need. But do people really want it. If they don’t you’re in trouble.
  2. Wasting Money On Ineffective Advertising
    What’s the quickest way to start marketing your business. That’s right – advertising. If you look through your local paper you will see any number of local businesses doing uninspiring, instantly forgettable advertising. When you’re starting a business, money is invariably tight. Every pound spent needs to generate a profit.
    If your advertising isn’t generating a profit, you should stop it immediately. If an ad costs you say £300, if you’re not making more than that in nett profit then you should stop it.
    Now I know the argument about it taking time to build awareness. Small businesses shouldn’t be doing brand advertising. Each ad should generate an immediate response and make a profit.
  3. A Website That No One Knows About
    You may have the world’s most beautiful website. You may have spent weeks crafting the words and selecting gorgeous images. You may have spent thousands of pounds with highly skilled designers but if no one finds it then unfortunately you’ve wasted all your time and money.
    At the same time that you’re creating your website, you must spend time thinking about how you’re going to drive traffic to it.
    Here are a few ways to make sure your website gets found:
    1.Search engine optimisation
    2. Pay per click advertising
    3. Email Marketing
    4. Traditional Advertising
    5. Viral Marketing
    6. Inbound Link Building
  4. Not Creating A Back End Of Products And Services
    Most businesses make their money by developing long term relationships with customers. The cost of acquiring new customers is very high. Luckily the cost of selling to existing customers is much lower.  So the secret is to create a “back end” so that as soon as you’ve made your first sale, you have something else to sell them. Your customer has already made the decision to buy from you once, given the right offer they’ll be happy to buy from you again.
    Create a sequence of products for your customers to buy and watch your sales grow.
  5. Not Allowing Yourself Enough Time or Money
    Few businesses become successful overnight. If you take the right steps from the outset, then you can build your business pretty fast. But it will still take time.
    When you start out you should decide how long you think it will take to build your business. Realistically you should now probably double that time. And of course it’s not just time that you need. You also need money. You must make sure you have enough cash to get you through this extended period. It’s such a shame when good businesses fail because the owner underestimated how long it would take and how much it would cost to get it up and running.