Someone once said that mistakes are just an opportunity for learning. Well, when that mistake is small, the losses aren’t usually significant.
But in business, one seemingly small mistake can cost you a ton of money, dent your newly acquired reputation, and even ruin your business. If you’re a new entrepreneur and want to avoid these very costly mistakes that are capable of doing severe damage to your new business, read on.
Not Marketing the Business Enough
One of the biggest mistakes that new entrepreneurs often make is poor marketing. Many assume that just because they have a great product or service, it’s enough for customers or clients to find them.
Well, it’s the 21st century. The days when you built it and they came are long gone –unless you live in a remote village and your business is the only one in town. These days, you need to promote and market your business to the right audiences.
Thankfully, there’s a wide variety of marketing channels that are available for everyone to promote their businesses on. Just pick one and go hard at it.
Not Having Enough Inventory
After you start generating a ton of traffic to your website or business, you want to make sure that you have adequate inventory.
Consumers value their time a lot and are unwilling to suffer incompetent retailers, store owners, or service providers. So, if you’re selling a particular item or service, make sure that your inventory or manpower can handle and fulfil the orders.
Trying to Do Everything By Themselves
When you’re starting out and the budget is tight, it makes sense that you would try to do everything by yourself. Most entrepreneurs go through this phase where they wear multiple hats over the course of a business day.
While you may be able to do this in the short term, it’s almost impossible to sustain that long term, particularly when your business is growing. So start outsourcing all the non-essential tasks to other professionals as soon as you can.
For example, instead of doing the books yourself, hire chartered certified accountants to take care of that. This will free up your time to focus on only the most important aspects of your business.
Handling Negative Reviews Poorly
If you run an online business or have a traditional mom & pop store with an internet presence, you need to be careful about how you respond to and handle negative reviews –some of these reviews are fake.
The internet is awash with examples of business owners who tried this and it backfired badly. As a rule, never denigrate, insult, or threaten the customer even when they’re wrong. Instead, calmly explain your side of the story and find ways to make it up to the customer.
Smart reputation managers often recommend that you ask to handle the problem privately very quickly and sort it out in the private messaging area. This way, you can quietly resolve the problem. And if the reviewer is genuine, they can update the review they left and hopefully, mitigate whatever damage their earlier negative review might have done.