The reasons why many businesses fall after some few years of start up is because there are terrible mistakes this entrepreneurs are making that is killing their businesses.
It is important that we understand who an entrepreneur is;
In a very simple definition, an entrepreneur is anyone who develops an idea, product or service and decides to bring it into the economic market for the sole purpose of making profit while taking full responsibilities of the loss and gain it unfolds.
Before a business can stand fully, it must go through difficulties and set backs. Nothing good comes easy especially when it has to do with business.
For a business to strive successfully, business owners needs to work on improving every area of the business. If thorough work is not though, then the business is bound to collapse overtime.
It is because of so many terrible mistakes made by business owners that is resulting in the fall of their business establishments. We shall take a brief look at some of this mistakes.
What Are The Terrible Mistakes Business Owners Make. Marketing is the driving and sustaining force of every business establishment or venture.
1. No Knowledge Of The 4 P’s Of Marketing
Marketing refers to activities an individual, venture, or company undertakes to promote the buying or selling of a of their product or service. Marketing includes advertising, selling, and delivering products to consumers or other businesses.
It is because some business owners don’t understand the importance and mediums of selling their products and services that’s why their business crumble overtime because marketing is the backbone of every business.
What Are The 4 P’s Of Marketing
- Product: Product refers goods and service that a business stands to offer. Every product or service should stand to provide value to the society or consumers. It should be specially different from others in the market. Product must meets peoples needs and satisfaction.
- Price: It is what customers pay to receive a product for its value. People will pay more for products that stands to give them satisfaction.
- Location: It is the place, environment, city, town, state and country where a business is situated or established. The Marketing Success of every business depends on the location where it is place. A business that cannot be seen, heard and accessed will eventually run out of business.
- Promotion: Promotions refer to all mediums and process that an individual or company use to create awareness about a product, service, or brand to customers or the general public. Advertising are ways used to educate and sponsor a product offline or online in order to get the attention of buyers to take necessary action on the product.
Types of advertising.
Offline
- Billboards
- Newspaper.
- Magazine.
- Radio.
- Television.
- Directories.
- Outdoor and transit.
- Direct mail, catalogues and leaflets
Online
- Smart Phones
- Online Emails
- Blogs
- Websites
2. Begging Family And Friends To Buy
Some business depends on their family and friends to patronize them. There is nothing wrong with telling friends and family about your business and hoping they buy from you.
What business owners should not do is to pin the success of their business on the patronage from friends and family members. It is not a wise thing to do. Begging people to buy from you is not a reasonable things. Let your family and friends come to buy your products because of the value they perceive in it not because you are begging them to buy.
Family and friends might buy your products when you beg them to, but lets hope that urge is really from the value they see in your business.
3. Don’t Give Room For Product And Service Improvement
Many business are not selling amidst the demand for such product in the market simply because they don’t seek to improve their product and services. While other business are upgrading to a better version or accepting a new knowledge for growth, some don’t. Instead, they prefer practicing same business procedures of the 1990’s even when the other competitors are seeking new innovations.
What makes a well renowned organization stand out of the crowd is the constant improvement / update they give to their products and services. Use Microsoft as a case study. Microsoft is always on a constant software update to give a better version of their product.
4. Not Minding The Competition
Many business owners fail to know that there is a contest in the market between similar businesses offering or selling same products as theirs.
Competitors target same customers, same audience and same consumers. Competition is necessary in every market, because it gives room for equal market share, controls inflation, controls supply and demand rate.
Business owners who are willing to be successful in their businesses must face the competition and seek ways of going ahead of their counter parts and not assuming other competitors to be enemies.
5. No Good Customer Relationship
A good customer relationship is when the customers have a consistent customer experience every time they interact with the business and leaves them with a good impression. There is mutual regard and understanding between the customers and business thus extends for a long period of time.
To build good customer relationships you need to: greet customers and approach them in a way that is natural and fits the individual situation. show customers that you understand what their needs are. accept that some people won’t want your products and concentrate on building relationships with those who do
Numerous business fail to have this good customer relationship. And as a result, driving away customers.
6. Many Don’t Seek Mentorship:
Many businesses fold up after few years of launching because they do not seek mentorship from experienced people or experts who are in their business line or have full knowledge of how run and manage that line of business. Business owners who do not have mentors or advisers will suffer the test of time and may loss the essentials principles of sustaining and running there businesses.
Competitors will be able to make things happen faster than you if you are starting up without mentors by your side. In order not end up wasting time and resources, it is advisable that Business owners seek mentors that can give them trainings and the basics of running and managing their businesses.
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