The world of online business looks so dreamy from afar that every person wants to try it out. The huge success stories of others tempt people to enter this arena. However, they sadly do so without any clear understanding of what to do and what not to do. Having a failing business is an extremely common occurrence. Want to avoid being one of them? Make sure you don’t make these mistakes:
Mistakes to avoid to save a failing business:
- Management of accounts
One thing all failing businesses invariably have in common is bad accounts. What you will see there is immense spending and very few returns. The reason? Overconfidence about their product leads to unnecessary lavish investment at the start of the eventually failing business. My tip for avoiding this is a conservative approach. Never overestimate your possible returns and NEVER EVER spend too lavishly unless you see returns starting to come in.
- The understanding of profit
A very sad and rather common cause of a failing business is the fact that the concept of revenue generation wasn’t considered while starting the business. The idea is amazing, the execution is captivating but does the business have a potential for a profit? No. and that’s where the dominos start falling. So whenever you plan to start a business, make sure it has the capacity to generate a profit, because otherwise it’s just a hobby getting the best of you, not business.
- Addressing investor concerns
Another big mistake made by those with a failing business is lack of effort put into addressing investor concerns. Either they were trying to fool the investors or just foolish themselves, the result is nothing but a miserably failed business. So whenever you plan on inviting an investor make sure you are clear on notions like exit strategy, estimated profit, being bought out by other investors, time taken for generation of revenue etc. Be clear and above all, be honest to them.
- Marketing strategies
What a failing business commonly tends to have ignored is the need for a good marketing strategy. Some businesses have a bad marketing strategy and some don’t have one at all. People won’t just be divinely pushed towards your website. Marketing is absolutely NECESSARY. Simple marketing is not enough to save a failing business. There has to be an integrated approach to attract and convert the prospects in your own niche and do it better than your competitors if you want results. Social media provides a great platform for an integrated approach towards marketing and can greatly help save a failing business.
- Use of technology
Balance is key in all walks of life. Business needs balance too. What poorly ranking businesses have done is overlooked the need to rely a little less on technology and focus on the human aspect of business. Your clients are humans. So are you. Many brands have succeeded because of their great understanding of what chords to touch when it comes to attracting audiences. Mechanical approach with the use of all kind of apps and tools may be easier but it deprives the customer of the feeling of being well served and understood.