It’s no secret that setting up a successful business is a challenge. The vast majority of new ventures fail, but why are rates so high, and what can you do to ensure you beat the odds? Here are some of the most common fatal business errors, and some tips to help you avoid them.

Targeting the wrong customer

To succeed in business, you need to be able to reach out to buyers who are interested in the products or services you sell. Pinpointing a target market and creating an ideal buyer persona are steps that should be taken early on in the planning process.

It’s crucial to launch a product knowing exactly who you want to buy it, and how you’re going to communicate with them.

Once you have an accurate idea of who you want to approach and attract, use market research and get to know your customer. Gather information and use it to shape your marketing and branding strategy. If you’re targeting young people, for example, it’s a good idea to incorporate email, social media, and SEO in your marketing campaigns. 

Getting your launch wrong

Your product or service launch should help you to get off to a flying start. While it is possible to recover from a poor launch, getting it wrong can jeopardize your future. Organize an event that showcases your products in the best light, upsell your USP, invite the right people, and ensure that everything is planned in advance.

Rehearse pitches, design exhibits that make your product look fabulous, and ensure you have a solid, competitive pricing strategy.

To keep costs down, look into hiring inexpensive venues, search for used gondola shelving for your displays, or consider hosting an online launch. This option can work well for tech products and items that will be sold by online businesses, for example, the opening of an online clothing boutique.

Create a buzz around your event, network, and make sure you follow up expressions of interest. Encourage people to subscribe to your emails, and make contact with buyers and customers who either made a purchase or thought about it. 

Losing track of your finances

Cash flow problems are one of the most common causes of business failure. When you’ve got expenses coming out of your ears, and orders aren’t flooding in, it can be very challenging to balance the books. Keep a close eye on your accounts and statements from day one.

Record every payment, chase up outstanding invoices, and monitor spending. Carry out regular audits, try and cut back in areas where expenditure is too high, and plan ahead. If you’re aware that you might face a cash flow problem in a couple of months, for example, this gives you time to find a solution. 

It is not easy to set up and run a profitable business. All too often, companies fail, and this is often due to the errors mentioned in this guide. If you’re preparing to launch a new venture, or you’re keeping everything crossed for a bright future for an existing business, hopefully, this article will help you avoid the pitfalls and stay afloat. 

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