You’re a new business. You’re excited, and you should be! Despite the stress and the long hours you’re working, it’s a unique time in life and you’ve got a bright future ahead – if you avoid the pitfalls on the road in front of you.
The first year to three years of an SME is infamous for its difficulties. Building a brand or service from the ground up takes work and a keen eye. Today we’re going to break down common mistakes new companies have made in the past for your benefit. So sit back, keep scrolling and see for yourself the kinds of mistakes your competition might just be making this very moment.
Mistake one: Poor research
It’s easy to ride on your gut instinct – and it’s often right. If you’ve got a vision for the future of your company, it’s tempting to let that drive push you forward as you enter the market. What many companies fail to do, however, is truly drill down into their proposition to see whether it’s the right time and the right place to bring it into the world.
Depending on the kind of business you wish to promote and build, your services might be time-sensitive. The industry could be poor and consumer appetite low, meaning your efforts would be better suited some years down the line. Your niche could be saturated already, making the gaining of any kind of digital or physical presence a slow grind that will eat up your capital.
To avoid this issue, it’s a great idea to network. Start building your LinkedIn connections, seek events to attend digitally or in person and do your best to build friendships with established professionals who can offer an inside glimpse into the market you wish to enter.
Mistake two: Not knowing your audience
Having a great idea can cloud our judgement. Sure, you might have a revolutionary product or a compelling service you just know will save your clients and customers time and money. You could feel you’re in the perfect place in your life to begin this path and you just can’t wait to go.
But do you know who you’re even selling to? The building of reliable and well-researched buyer personas is the foundation and starting point of any serious marketing campaign and it takes work to do. Fortunately, with the slew of digital marketing tools available to us, it’s possible to research your audience to the point where you can create highly detailed, granular personas to guide your sales and marketing efforts.
To avoid this pitfall, fall back to the tried and tested principles of a good persona: pain points, fears, wants, needs and priorities. Consider the age band and seniority level of your ideal customers, whether you’re going B2B or B2C, and drill into the reasons why they’ll be clicking on your links and interacting with your sales staff. If you have the money at this stage, there are many marketing research consultants and businesses that can help get you solid data and surveys to cement things.
Mistake three: Winging it with cashflow
It’s understandable as a mistake; new companies rarely start out flush with money. You often trade time for cash, working long hours to get ready for success.
It’s still a mistake, though. The Idea Financial team has helped many a business secure funds when and where they need to, ensuring they avoid unexpected difficulties surrounding money. This is a time in your company’s life where it’s best to plan for the worst; what are you going to do if your sales pipeline dries up, and do you have several different ways in which you could secure money ready to go for when the need arises?
This is not only important for the worst-case scenario – it matters for growth, too. Be ready, have lines of potential credit prepared and capture the sudden spurts of growth as neatly as you sidestep the dangers of poor sales performance.
Best of luck
A short, punchy and valid set of tips to give you some food for thought. These three points sink unprepared businesses every month of every year in the global business world, so consider them as you prepare for your own beginning. Good luck!
