So you’re about to go into a business you’re passionate about. Congratulations! We’re glad you’re doing something that makes you happy, and that you’re planning to earn from it. But in starting a business, you have to be careful. There are mistakes that you cannot make as doing so will affect your venture negatively. Read below to find out what they are.
Forgetting to do a SWOT analysis
The SWOT analysis (Strength, Weakness, Opportunity, Threat) is a crucial part of every business planning. As the name suggests, this helps you analyze the potential strong points as well as the weak points and the challenges it may face. It helps if such discussions are done thoroughly so that you can know and therefore capitalize on your strengths and opportunities while addressing weaknesses and threats before they arise.
Going in with insufficient capital
You can’t go on a venture without sufficient capital. Remember, it takes money to make money. If you and your co-owners don’t invest enough, your business might just end even before it officially begins. Of course, don’t overspend as well as you might just have more losses than earnings if the business isn’t as successful as you expected it to be.
Overestimating one’s capacity
As the saying goes, no man is an island. Just like no owner can launch their business alone. There are so many people you need to start a business, including an accountant, a lawyer, marketing personnel, and more. Don’t try to do things all by yourself, especially if certain areas aren’t your field of expertise. That just makes a recipe for disaster. Hire competent professionals who do it for a living so you can focus on your core duties without worrying too much about the other factors.
Skimp on quality
While some brands are somehow able to skate by through name recognition and prestige alone, the quality of the product and services is still a crucial factor in the success of a new business. If your potential customers are always complaining about the services you deliver, you’ll end up getting a bad reputation and therefore less sales. Even if you somehow make it, would you really want to be known as a business that only relies on your brand name? No matter how big you get, always prioritize quality.
Refuse to listen to customers
Adding to the previous point, bad news will only come to businesses who don’t take into account the feedback of the customers. They are the ones you have to appeal to because of their buying power. Make sure you keep an ear out on any and all feedback they might have. This doesn’t mean you need to listen to all of their suggestions as other factors such as logistics, timeliness, etc. should be considered. But definitely listen to them and improve your services accordingly.
Failing to insure your business
As much as you do everything in your power to make a business work (and even if you do end up successful), some circumstances are just unavoidable regardless. From natural calamities to accidents, there are so many things that can go wrong. That’s why you have to be insured with an effective property insurance in the Philippines so that if such crises do happen, your business and the employees under you are all prepared to receive the blow.
Entering a business of your own can be quite daunting to first-timers as so many things can go wrong. But by avoiding the mistakes above, you can come out of it on top and successful. Don’t be afraid to start your own brand or product, but always have safeguards in place so you can bounce back amid the challenges.