You need discipline and wisdom to successfully start and run a business. The discipline commences with a plan. What are your mission and vision? What will you do to guarantee the survival of your business? Wisdom comes from knowing what you should do.
What you Should Know
1. Competition Will Always Exist
The thought of launching a product and making money is exciting especially if it’s something you’ve wanted to do for a long time. You have done your research and know your product is going to sell. The mistake new entrepreneurs make is underestimating the competition. Don’t get carried away and think your product has no equal.
If the idea is viable and profitable, you won’t be the only one. Therefore, perform your due diligence and discover ways to differentiate your product.
2. Marketing will help you Succeed
Many business owners assume a superior product sells itself. While it may be true to some extent, you shouldn’t rely on word of mouth. Go after the customers. Find out where they spend most of their time and how they search for products. Which platforms do they utilize?
Then, develop a marketing strategy to entice the buyer at various stages of the purchase funnel. You’ll require funds to hire marketing professionals so that you can get outstanding results.
However, don’t leave everything to the professionals because they may need you for clarification purposes. Therefore, follow up to make sure everything is in line with the marketing strategy.
3. You Need Help
There will never be anyone with a better vision for your business than you. However, it doesn’t mean you need to do everything yourself. You’ll experience burnout if you do that. You’ll put your business at risk when it needs you the most. Customers will go somewhere else because there’s no one to return their calls or respond to their messages.
Therefore, make sure you hire at least three to five people to help you cope with the workload. Find competent and trained people to aid in the growth of your business.
4. Don’t Underestimate Costs
This is the first mistake entrepreneurs make when venturing into an experimental project. You think you have all the costs figured out until you undertake the project. Halfway through the venture, you realize you’re spending more than you had planned for. For example, the air freight services expenses may have doubled because of the weight of the package.
To avoid such disasters, consult widely before investing in a project. Hire the best people to help you estimate the costs more accurately. Also, consider cheaper alternatives. Can you replace the project with something less costly? If you must invest in the project, have a provision for unexpected costs.
5. Don’t Lower your Prices
New entrepreneurs assume the best way to conquer a competitive market is to lower their prices. Regrettably, this strategy always backfires. The entrepreneur starts with a modest price and gradually increases it thinking customers will continue to buy from them. But they leave because they feel cheated.
Before pricing your products and services, consider all costs, including marketing. How much will you need to break-even? Is your product worth the value? Use reasonable margins to price your products from the start. Don’t worry if the price is relatively higher than the competition. Show customers why your products are superior.
Running a business successfully demands that you know what to expect. Things may not always be clear as night and day. For example, pricing your product is a complicated process. You have to consider all cost factors and business needs before selecting a figure.