Four Things You Are Doing That May Be Ruining Your Business

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The prices you set for your goods or services influence nearly every aspect of your business. Don’t forget that your competitors can also decide to lower prices to attract your customers and this might lead to a price war which would impact profits

Entrepreneurship journey has always not been easy, in fact any successful entrepreneur will tell you it is tough and challenging starting out with little financial backing and sometimes even less moral and emotional support.

For obvious reasons, owning a business requires making decisions that may make or break your business and in the case of small-medium businesses decision making and the outcomes rest solely on the founder.

Meanwhile, irrespective of someone’s business acumen, you are bound to make mistakes at some point and the key to your success is to quickly identify your mistakes, learn from them, and prevent the same mistakes from happening again.

Against this backdrop, EnterpriseCEO consider four (4) common business mistakes made by Entrepreneurs in the course of starting and managing their small businesses.

  1. Mixing Your Personal Funds with Business Funds.

This is one of the easiest trap for entrepreneur to fall into thinking that It’s his business, so therefore the business accounts are your accounts. Business and personal finances should always be kept separate.

No matter how small your start-up, open a dedicated business account and ensure you only use your business bank card for business purposes and vice versa. The odd mistake can be forgiven, but seriously mixed up finances will cause all manner of difficulties.

YOU CAN ALSO READ: EnterpriseCEO Media Partners Centre for Financial Journalism for Media Masterclass

2. Failure to Identify Competition

What else could the consumer do instead of using your product or service? Even if you have the latest, greatest, never-been-done-before approach to something, don’t assume that you have no competition. Competition is more than just the direct, obvious competitors.

Competition is also all the available alternatives. A good example is someone manufacturing fruit juice, your direct competition may be other juice manufacturers however the person selling pure water can also be categorized as an indirect competitor because it seeks to satisfy the need for a drink. That alone is a serious competitive threat.

3. Reducing Price as Competitive Advantage

Every entrepreneur must understand this psychology behind pricing that the cheaper prices don’t always mean more customers. Most customers are willing to buy more expensive items because of the greater quality or the added convenience.

The prices you set for your goods or services influence nearly every aspect of your business. Don’t forget that your competitors can also decide to lower prices to attract your customers and this might lead to a price war which would impact profits.

YOU CAN ALSO READ: ‘Self-Discovery, Goal Setting Are Catalysts for Achieving Outstanding Success in Life’ – Dr. Anthonia Alebiosu

4. Lack of Marketing Strategy

Marketing is one of those areas that many business owners know they should be getting involved in, however don’t really know where to start. Failure to market your product or service is like winking in the dark, you know you are winking but no one else knows you are winking.

In this age when there are various marketing platforms and consumers are exposed to different products and services daily it has become more important for business owners to choose the right marketing strategy and make resources available for implementation.

Conclusion

Mistakes are inevitable in business, and you can’t avoid making them. They’re a necessity if you want to keep growing. So, rather than overanalyzing what you did wrong, focus on how you can do it better in the future. That’s the only way to grow.

 

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