11+ Untold small business mistakes entrepreneurs should avoid

11 Untold small business mistakes entrepreneurs should avoid

Welcome to our blog post, where we uncover the hidden secrets to unlocking success in your small business venture. As an entrepreneur, it is crucial to be aware of the potential pitfalls that can hinder your progress. While many common mistakes are well-known, some lesser-discussed ones can have a significant impact on your entrepreneurial journey. 

In this article, we will shed light on 11 undisclosed small business mistakes that entrepreneurs should avoid. By understanding and sidestepping these pitfalls, you’ll be on your way to achieving success and growth for your business.

Unlocking Success: 11 Undisclosed Small Business Mistakes Entrepreneurs Should Avoid

#1 Not having a strong customer focus

         It is easy for small businesses to get carried away by other business processes while losing focus on the most important aspect of business – THE CUSTOMER. 

But first, who are your customers? You should know who your customers are to be able to deliver. For example, in helping their team make better business decisions, Amazon has a tenet of who their customers are “Sellers are our customers”. This clearly defines who their customers are, whether they sell locally or internationally and every member of their team uses this in guiding their work and decision-making processes.

Before making decisions for your small business, think first about your customers. Businesses that implement a highly customer-focused approach in their decision-making have a high chance of succeeding. 

You should know the needs and wants of your ideal customer will change over time, if you are not focused, you will quickly lose them to your competitors. 

#2 Launching too quickly 

Most small businesses make the mistake of launching too quickly just to fail a few months down the road. I’m not saying you should take years before launching your small business. Every small business is different and requires different levels of preparation to get started.

We have worked with clients who were so excited about starting their businesses, that when we asked them how prepared they were, they were always very excited, to give a swift response. You will hear responses like:- 

• All my business needs is funding, if you can help me write a convincing business plan my bank can approve, I see success. 
• I just need capital, so that I will be able to rent a shop for my brick-and-mortar store and stock it with goods. If I have a large stock of goods, it’s going to attract customers. 
• If I have this capital, I will be able to buy the trucks I need and start my trucking company before the end of the month.

You may not see anything wrong with the above statements, but these people are not prepared to start a business, but out of excitement, they want to launch their business quickly. Your business indeed needs capital, but capital is not everything it needs. Take time to plan your business before you begin with execution. Next, we will talk about what we call the “buying trap” as it is a common business mistake most small businesses make. 

#3 The buying trap 

When starting a business, you should try to keep costs as low as possible, do not fall into the buying trap of buying things you do not need. Unfortunately, this is a top business mistake among many businesses. Warren Buffet once said, “If you buy things you do not need, soon you will have to sell things you need ”. Many entrepreneurs fall into this trap when starting. This can greatly affect their businesses in the short and long run. 

For example, say you are starting a small online business from home, you should not be investing more in the things that add little or no value to the growth of your business, like some new tables and chairs or some wall paintings. If you have a healthy financial habit in managing your cash flow, you may consider buying a fairly used table and chair and erasing the wall painting from your list, as it has very little to offer to the growth of your business. This will help you to save more for the things that matter the most in your online business, like investing in the right software to grow your online presence.

     Some common buying traps we have identified are:-

1. Buying things you do not need.
2. Buying cheap second-hand equipment that comes with a high long-term maintenance cost.
3. Buying more than what your business needs.
4. Buying at the wrong price.

The above buying traps can cause a lot of damage and hinder the growth of your small business.

#4 Trying to sell products instead of value

Here is what you should know. Customers pay a price to get value in return and not just products. What have you been selling to your customers? Have you been selling to them the value of your products or just the products? This is one of the biggest business mistakes, made by small businesses, as they are always so excited about their products.

 Most small businesses try to sell customers quality products, not problem-solving products. when selling to customers, stop talking more about the quality of your products. Instead, talk to them more about how your product will solve their problems. That is what they want to hear. 

This is why customers care less when you say you produce the best toothpaste in the world. Even if it is true, what makes it the best from your viewpoint is different from what makes it the best from the point of view. To you, it may be the unique formula you used in formulating your toothpaste, while to the customer, it can only be the best if it solves their problems better than your competitors. So stop selling products and start selling value.

#5 Not staying up-to-date on industry trends

Look, the competition is for real, and it is getting bigger daily. There’s no excuse for being a small business, as you either wake up or get knocked out. Small businesses love to feel like changes in their industry are only a concern for the big players.

This is a risky mindset as these trends may one day take you unaware and send you out of business. To avoid this common business mistake, here is how to stay updated on industry trends that may affect your sector directly or indirectly. 

1. Read industry publications related to your field.
2. Read industry publications of other related fields.
3. Attend trade shows.
4. Network with other businesses.

#6 Not being willing to change

      One fatal small business mistake to avoid is trying to resist change. The business world is constantly changing, and you should always be ready to adapt. One of the reasons why small business owners are resistant to change is because they are afraid of losing what they’ve already built.

This kind of strategy is pointless because your competitors may adopt these changes to scale their businesses or to remain relevant in the industry.

 Resisting change will cause your business to become stagnant. This may have a long-term effect on your business. In the worst-case scenario, you may even have to shut down your business. Technological advancements are at the forefront of these changes, and these advancements are disrupting almost every industry.

Instead of resisting, learn and adopt these new technologies to continue growing and scaling your business. Remember sitting and complaining is not and will never be a business strategy.

#7 Not being prepared for setbacks

So you are excited about your new business opportunity, so what if it fails? Have you asked yourself this question? Do you have a backup plan? 

Like it or not, there are setbacks in every business, and small businesses are not an exception. Not preparing for failure is a small business mistake you should avoid. You should have a plan in place for dealing with these setbacks as they arise. 

#8 Not planning for the future 

  Is your small business prepared for growth? While the idea of starting your business sounds great, some businesses can grow fast. If you haven’t made plans to accommodate this growth, your business can suffer. As an entrepreneur, it is important to have a growth plan in place for your small business.

This plan will help you prepare for growth both in terms of your business operations and personal finances. As you make plans for the future of your business, when the time is right, it becomes easy for your business to move into the next phase of its growth cycle. 

 #9 Not having a strong online presence

Every business needs an online presence, but small businesses need it even more. With the right online strategies, they can easily compete with large enterprises, attract clients and grow their businesses. Unfortunately, many small businesses are still reluctant to go digital. They make this small business mistake of thinking small.

They feel they are small so they don’t need an online presence. As they continuously fail to build an online presence, larger businesses will continue to capture and serve clients that were to be served by these small businesses. This will limit the growth of small businesses and keep them small for a longer period.

In building your online presence, you should:- 

1. Have a well-designed website that is optimized for search engines.
2. Have active social media accounts.
3. List your business in local directories

#10 Not investing in marketing

 Is your small business investing in marketing? Marketing is essential for any small business that wants to grow. Many small businesses are reluctant to market their products and services. They feel marketing is expensive but do not realize the growth opportunities they are missing out on.

With the rise in new businesses and an increase in competition among businesses, failing to market your product or service can greatly slow down the growth of your business. This small business mistake is so common, and you should avoid it if you want to see your business succeed.

#11 Not taking care of yourself and your mental health

   This is one of the biggest business mistakes made by small businesses. Running a small business can indeed be very demanding, but this should not be a reason to neglect your health. For most small businesses, if the owner falls sick for a long duration, their business can easily collapse. Neglecting your health can lead to burnout and other health problems, which can cause your small business to suffer. Neglecting your health is similar to neglecting your business. You both need each other to survive.

Rounding UP

 In conclusion, navigating the path to success in your small business requires more than just hard work and determination. It necessitates a keen awareness of the mistakes that can sabotage your efforts. By delving into the undisclosed small business mistakes discussed in this article, you have gained valuable insights into the potential pitfalls to avoid.

Remember, success often comes not only from what you do right but also from mistakes you manage to avoid. By staying informed, learning from the experiences of others, and making conscious efforts to evade these pitfalls, you are well-equipped to unlock the doors to success in your entrepreneurial journey. Embrace the knowledge gained here and let it guide you towards greater achievements and prosperity in your small business endeavours.