5 Things Small Business Entrepreneurs Must Avoid

Being an entrepreneur is a very challenging task. One poor decision and the damage to the business potential can be tremendous. Here are 5 things small business entrepreneurs must avoid.

Undervaluing the Product and Not Enhancing Its Price and Quality

A lack of self-assurance in the company’s ability and the terror of failure cause a lot of small business entrepreneurs to under-value their products and services. This is a hazardous route to take for the reason that it demoralizes the exclusive value a company brings to the table and unlocks the likelihood of dislike and frustration in the future. In addition to valuing the service/product a business is providing in an appropriate manner, small business owners should also look at technologically improving their output in order to provide new prospects, help the staff to work more professionally and even help the company save some money.

Incorporating innovative technology into a new business may be a frightening thought for a new business owner; however, with time to learn about how the technology can help the business, it can be very beneficial. On the other hand, a reluctance to become accustomed to technological developments can hurt the business both in the short and long run.

Not Focusing on Customer Recognition

One central part of any effective business strategy is recognizing who the business’s ideal customer group is. It’s not sufficient to allot a certain percentage of the budget into trying a bit of everything. Proper market research needs to be implemented in order to successfully identify who exactly the company is trying to reach out to.

Not Setting SMART Goals

SMART goals help in giving the entrepreneur the correct direction when they first start their business, keeping the company on track during the routine operations. SMART goals need to be –

• Specific
• Measurable
• Attainable
• Relevant(based on the existing conditions and veracities of the business environment)
• Time-Based

Whether the business target is to increase income by 10% or to secure 10 new clients, choosing specific and measurable goals and attaining them within a strict time-frame is crucial for accomplishing business goals.

Not Planning Each Phase

Planning may be dreary, but without a compact plan for a business that comprises commercial idea research and industry potential, an entrepreneur can find himself or herself to be functioning in ignorance. The most significant plans include –a commercial plan, an economic plan, and an advertising plan.

Overspending

Founding a business doesn’t necessarily have to involve a huge investment, but some new corporate owners feel that overspending in all sectors – be it equipment, software or manpower is the best way to guarantee success. For small business owners it is important not to fall into this trap and go for less-expensive yet equally practical options accessible by conducting proper research. Fashioning and sticking to a strict budget to limit overspending is the best way to go!

The key to being a successful entrepreneur is being aware of the mistakes one makes and consistently working to make smart, well-informed decisions for the business.

Reshali Balasubramaniam

Head of HR, HR Counselor and adviser at https://work.lk/. Do you offer a Service? Signup for an account at work.lk