5 Business Mistakes To Avoid

The decision to own and operate a business is exciting. And when we go into business, we rarely think about the possibility of business failure or filing for liquidation or bankruptcy.

But the reality is that not all businesses are profitable, and not all companies thrive. We have all been told that 60% of businesses only last for the first 3-5 years, and only 40% of small businesses surpass the 1st five years.

So why is that?

Why do 40% of business owners survive (or thrive), and up to 60% of businesses fail?

In this article, we will address the top 6 business mistakes that you should avoid and its recommendation on how NOT to become part of the 60% statistic:

- Poor Lease Negotiation
If you struggle to improve your net profit, your Lease Agreement could be the problem.

If you fail to negotiate the Terms and Conditions that are beneficial for your business, you might end up giving away up to 60% of your profit margin to your Landlord.

The key to success in the Lease negotiation phase is to engage a competent commercial lawyer, not just any lawyer.

- Compulsive Spending
It takes discipline and self-control to refrain from overspending.

When you are stressed, tired, and exhausted, most of us are inclined to engage in “retail therapy” – the act of spending money in a careless and wasteful way.

And if you are not mindful of your action, it can easily lead to compulsive spending, which can signify depression, anxiety, and mental health issues. (Joel Young, M.D)

- Outwit By Your Competitor
Some of your competitors are so far ahead you think you are the first in the race.

Most business owners are so busy they have little knowledge about their competition: their sales & conversion strategies, pricing models, and customer-journey process.

And very soon, your only competitive advantage is lowering your prices and offering discounts without any Upsell.

If you do not invest time to study your competitors, eventually, they will outwit you in terms of customers and sales.

- Lack Of Marketing
The goal of marketing is to build and increase traffic to your website (or brick-and-mortar store) so that you can convert them into customers.

The information and technology age has disrupted many traditional ways of doing marketing. Long gone were the days of Newspapers’ classified Ads, Yellowpages, and expensive Radio and TV ads space.

More and more competitors are using social media to sell the same services as you are, with a much better market presence at a competitive pricing model.

And there is only one strategy to beat them.

Invest in traffic-producing strategies such as paid Ads, SEO, SEM, and partnering with affiliate marketers.

- Lack Of Relevant Experience
Skills take time to cultivate, and experiences come from learning mistakes. And mistakes cost money and time.

It may look easy on the outside, but it’s a different game when you plunge into the arena. You have to clock the time.

There are no shortcuts to acquiring experience. You either pay for it through learning from Advisors or spend years clocking the mistakes of what others have gone through.

If you would like to find out more about how we can help you with your business consulting, click the link

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