As many of us know, over half of all businesses fail before their first birthday. I don’t tell you this to scare you off. Actually, it’s quite the opposite. I use this statistic to encourage you to work even harder at your dream. Only a small percentage of companies survive the early years, and it takes an enormous amount of perseverance.
It also means avoiding some of the biggest mistakes and pitfalls. As a new business owner, you can learn from the mistakes of the past here. While you may be relatively inexperienced, the same mistakes are killing businesses time and time again. Learn them, and you can avoid them.
Mistake #1: Not listening to your customers
No matter what industry you’re in, your customers are the heart of your business. Without them, your profits will dry up, and you’re left for dead. Unfortunately, you can never take their custom for granted. In fact, you must work hard to keep it. That’s why a regular communication is essential. Conduct regular focus groups, and maintain a dialogue over social media. What do you customers want from your company? Most importantly, what are you doing poorly? Trust me, your customers will be the first to tell you!
Mistake #2: Failing to understand the market
This mistake has caused the death of numerous companies, not least mobile giants Blackberry. They completely failed to comprehend the emerging smartphone market, and were swallowed whole. If it can happen to an established industry player, it can happen to your company. Keep one eye on the horizon, and understand the market around you.