As an entrepreneur, taking the time to plan your vision and prepare for real-world implementation is vital. While there is no fool-proof approach to startup business success, the BLOQ parq (tBp) supports your goals of becoming the next Kevin O’Leary a.k.a. Mr. Wonderful. It never hurts to dream big, right? Here are 5 common pitfalls you’ll want to avoid along the way.
1. Spending beyond your means
Starting a business doesn’t necessarily require a large investment, but some new business owners feel spending big on items like equipment and software is the way to go. Instead, outlining a business budget (and sticking with it) to curb overspending and examining less expensive options is a more reliable way forward. Surprises are nice, but not when it comes to your finances. If math is not your strong suit, you may want to consider hiring an accountant to keep your company’s costs in check.
2. Not knowing your target market
It’s easy to get caught up in the many moving parts of launching a business, but too many startups skip this pivotal piece of the puzzle. Knowing your target market means being able to differentiate your self-defined, ideal customer from your real customer. Conducting market research can help deliver the answers you need. It’s worth putting in the time and resources in order to accurately define who your customers are, what they want, and how to reach them.
Gartner research recently discovered that collecting customer feedback can increase upselling and cross-selling success rates by 15 – 20 percent.
3. Overlooking the value of marketing
Many new business owners swear by the adage, “If you build it, they will come.” In reality, without marketing efforts, people won’t even know where to go. Your business requires visibility and brand recognition. These elements are rooted in a healthy marketing plan. Disregarding or underinvesting in your marketing can be a make or break factor for the long-term success of your business. You want to “build it” and then market the value of what you’ve built!
4. Bypassing the planning phase
It’s not uncommon for new business owners, operating on inspiration and passion, to jump into entrepreneurship without a plan in place. However, having a proper business plan is a crucial step in bringing your vision to fruition. It takes time, energy and effort but in the end, crafting the proper plan will keep your business on course for continuous growth.
5. Pricing your products or services inappropriately
When it comes to determining the price of your product or service – winging it is not the way to go. Pricing without proper preparation is likely to cause significant profit losses down the line. Conducting market research, determining your product or service’s perceived value, and aligning your pricing strategy with your business strategy all play a crucial role in finding the sweet spot for what you should charge.
As you enter the world of business ownership prepared to learn from your mistakes (everybody makes them) and focused on continuing to build your knowledge, tBp is happy to welcome your new business home to a place that lives and breathes the spirit of innovation, entrepreneurship, and community.