Thanks to the competitive market and unstable economy, starting a business is more difficult than ever before. Statistically, the majority of new businesses fail within the first year. For the businesses that do see their one-year anniversary, half will not see their fifth anniversary.
Success in business is not for the faint of heart. It takes will, drive, determination, and a keen understanding of the business market. And it doesn’t hurt to have your MA in business administration. While business success is not guaranteed, by avoiding these four mistakes you will have improved your business’s success rate exponentially:
1. Not Investigating the Market ![man holding head in hands from failure in starting a business]()
For business success, there is a relationship between your business and the current business market. Successful businesses usually stem from an idea that, at the time, was one of its kind. Take the iPhone, for example. Its imminent success was related to the fact it controlled the market. Although the idea of cellular phones was well into existence, Apple broke into a saturated market by creating a smartphone—something yet to be revealed to the minds of the public.
Business success is tied to the market. What is popular in the business market? What is it lacking? How can your product improve the market? Answering these questions can allow you to find your niche in the business world.
2. Business Plan
One of the biggest mistakes new businesses make is either creating an unrealistic business plan or foregoing the business model all together. Many entrepreneurs believe they don’t need a business model, but a realistic business plan is the foundation of a successful business because the plan outlines business goals, marketing strategies, and financial plans. If you don’t have goals set for your business’s future growth, you won’t know how and where to expand your markets.
3. No Financing
Businesses are costly. Because of the financial risk involved, many new businesses budget too little to actually keep their business afloat. Most businesses hope to break even their first year and turn a profit by their second year. However, if you have not allotted enough money to sustain your business through the years before it yields a profit, you will quickly be consumed in a pile of debt. Stretching your finances at the beginning and skimping on what the business really needs means your business may never take off and you will have a lot of cash to repay.
4. Poor Marketing
Marketing is key to business success. Growing your business organically can take years, which most businesses do not have. It is vital that you market your business through social media, a business app, and networking.
While marketing can be expensive, it is necessary to building a following for your business, especially if you are in a competitive market. Marketing is what brings customers into your business. Without it, most people will be unaware of what your business is, or worse yet, unaware it even exists.
Use these strategies to avoid business failure, and instead building a healthy, successful business.
About Miguel Salcido
Miguel Salcido is a veteran search marketing executive with a focus on SEO and link building. He has provided SEO consulting to enterprise brands such as McDonald's, State Farm, Chicago Title, Expedia, Qualcomm and others. In his 11+ years in the industry Miguel has built and led large search agencies, holding executive and VP level positions. He is currently providing SEO consulting services to select clients via his boutique SEO agency, Organic Media Group.
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