Small Business Entrepreneur
5 Mistakes Small Business Entrepreneurs Make Resulting In Bankruptcy by Regis Uzoma
You probably want to know why your business in spite of your diehard commitments isn’t just forthcoming. I’m sure it baffles you that the ovation was loudest ONLY when you started out on the venture, when in fact you were mentally or structurally poised for conquests – at least, so you thought not too long ago. So what happened? That’s the aim of this write-up: highlighting a few of the common mistakes made by small business entrepreneurs resulting in near or absolute bankruptcy.
1. Pricing yourself too low:
Conventionally, many “new kids on the block” presumably equate incredibly low price tags for higher patronage. You believe that the lower your prices, the more edge you have in the perpetually competitive market, and it therefore beats your imagination that regardless of your huge economic trade-off, you’re just nowhere on the edge. But no! It doesn’t exactly work that way. The reason simply lies in the fact that clients are mentally stereotyped to equate cheap products or services with inferior capacities. Imagine your reaction were you to see an advert of a Chrysler being sold for $1,500; sounds a little dubious, doesn’t it? Now this is what you do to yourself when you settle for really less. To compete favourably, set your price at the average or minimal market price and not off the hook.
2. Convert theories to action:
Few things could be more crippling than over-reliance on classroom-taught entrepreneurial methodologies that guarantees a big bang. While these “methodologies” could be useful, they don’t always get the job done. What am I saying? If you’ve got a good business idea along with a remarkable dose of passion, please dive into it headlong without always mentally theorizing the pros, cons, adds and deletes. Where necessary, refer to your background but don’t remain there. Take what you need and move on. The truth is, we have an under-estimated idea of our intuitive and commonsensical capacity.
3. Stinting investment in adverts, exposure and marketing:
A very distinct way of spotting newbies is to get a hang of their investment methods especially in the areas of marketing and adverts. Typically, you would observe a tendency for such entrepreneurs to cut corners in these areas, as in clearly avoiding such investments. For you as an Entrepreneur, these are integral aspects of your business which you simply must not overlook. You are ONLY as big and credible as you paint it. Cut no corners in these regards and avoid unprofessional advertising tactics such making cold-calls and the likes; methods that rub you of your clients faster than you can imagine.
4. Mixing business with friendship:
Here is one aspect new entrepreneurs will need a proper orientation about. Business is exactly what it is – business. There is the place of friendship and it is definitely not in business. The earlier you create that severance, the better for you and your business. True, some friendships triggers really strong partnerships resulting in a big kill, but more often than not, such mergers usually end up in a fiasco which doesn’t only hurt the friendships but actually shows the business its way out. If you must do business with friends, protect that friendship by backing the business up legally. That way, there is an understanding as to the limits of the chances that can be taken in the name of friendship. Business will therefore be taken as what it is, and not a roller coaster.
5. The consultative selling factor:
Investing in this aspect of business guarantees you something: good questions being asked. But you know the problem? Too many of these “good questions” infuriates your clientele and cures customer-stickiness. Do not stop at being sure of what your customers want but go the extra mile to sell them what they dearly need. This would result in consistent repeat of business and make your clients stick to you. Let your expertise play itself out in the way you go beyond selling promises to traversing these promises.
About the Author
Regis Uzoma is an expert author of multifarious articles ranging from business to whatever else your mind can conceive. He may be reached via reggieibmt@gmail.com
Lessons for Succesful Entrepreneurs and Small Business Owners – Part 1
