By Jevon Wooden
(As seen on Fast Company)
Running a business can be very challenging, and entrepreneurs often struggle to find their footing from the very beginning. Mistakes made can cost a new business time, money, and customers.
Here are six of the most common mistakes entrepreneurs make, plus suggestions about how to avoid them.
1. ENTREPRENEURS NEED A CLEAR BUSINESS GOAL
To start a new business, you should have a clear goal to remind you where to aim and keep you on track.
Begin formulating your business goal by thinking about what you want to do and why. Write down your reasons for starting a business, what service or product you want to offer, and what you ultimately want to achieve. Writing down your answers can help you narrow down a focused goal; it’s the first step to putting your plan into motion.
Strategic planning guides you in making the necessary steps for your new company and ensures clear short-term and long-term plans for improvement and success. It’s up to you to decide which goals are vital to your company. Which goals are actionable and measurable? Which goals should you prioritize?
2. NOT DEFINING YOUR BUSINESS’S TARGET AUDIENCE
Your target audience is the group of people your business is trying to reach. As an entrepreneur, it’s essential to ensure that your target audience is the right one for your business idea because marketing to the wrong people could waste time and money. Knowing your target market will allow you to effectively strategize and promote to those who are most willing to pay for your goods and services, drive sales, and minimize wasted resources.
To figure out your target audience, create a buyer persona of your ideal customer. The persona could include:
- where they live
- their preferred social media platform(s)
- their typical buying preferences
- an effective “hook” that would motivate them to purchase your product or service
3. NOT UNDERSTANDING YOUR COMPANY’S VALUE PROPOSITION
A value proposition describes why someone would choose to do business with your company over another. It is sometimes called the “unique value proposition” or “UVP” because it is also the way in which your company differs from the competition.
Start by studying your target market to see why they purchase a particular product or service. It’s important to make your company memorable and make your customers feel that the product or service was created just for them. An extensive product range, excellent customer service, quality, or pricing can differentiate your business from the rest.
4. NOT UNDERSTANDING YOUR COMPANY’S UNIQUE SELLING POINT
If you want to make a good impression on both potential customers and existing clients, you need to have a unique selling point (USP) that will help you stand out. The USP can be anything from your products to your service to your style. If you have a unique selling point that makes your product or service stand out, you will have a better chance of succeeding in business.
5. NOT SETTING AN EFFICIENT MARKETING STRATEGY
A well-executed marketing strategy is vital to any new business. You can create marketing plans to help you identify your target audience, reach your target audience, and learn what you need to do to make your business successful.
Before you can begin executing a marketing strategy, you’ll need to know what hooks your target market into buying your product or service. Perform a SWOT analysis of your product or service to see it from a buyer’s perspective. Doing internal and external audits will fill in the gap on how you can bridge your customers with your product or service.
One of the most effective ways of finding out what your target audience wants is to perform a survey. You can survey your email list, social media following, or with a third party.
6. NOT BEING ABLE TO COMMUNICATE YOUR COMPANY’S STORY
Your company is much more than a set of products or services—it’s about your customers and how you can make their lives better. It’s about your employees and how you can make them feel great about coming to work daily. It’s about your community and how you can make a difference in their lives.
Business is not just about making sales, but also about how you impact your customers’ lives. Remember, people buy emotionally and justify logically. Market your product or service in a way that tells a brand’s story that people can relate to. Emotions are what make people act. Make sure you connect your target market to their emotions in a way that would trigger and drive them to buy and become advocates of your brand.
Laying the foundation and taking the time to research, strategize, effectively market, and analyze your target market and product or service will increase your chances of creating and driving sales to your business. Remember that it is not a race; planning every step will help your business minimize wasting resources and maximize revenue.
Contact me if I can be of assistance on your success journey. I have also written a book titled, Own Your Kingdom, that has helped many business leaders reframe their thinking.
Jevon Wooden, CEO of BrightMind Consulting Group, is a business coach and consultant, keynote speaker, author, and Bronze Star Recipient passionate about marketing, sales, technology, and helping motivated entrepreneurs and businesses increase clarity, confidence, and cash flow while having more time to focus on what matters.
