Common Mistakes That All Startup Owners Make
Many entrepreneurs become so enamored at the idea of startups. Opening your own business is a great way to become your own boss, set your own schedule and do something you are passionate about. However, there are plenty of pitfalls you need to avoid in order to be successful in your industry. By learning from the mistakes of others, you can vastly increase your chances of having a profitable company for years to come.
One huge mistake new entrepreneurs make is not listening to customers. You should have a survey system in place that allows you to know what people thought of your business. When someone provides you with criticism, you want to listen to it carefully. This includes reviews you find on Yelp. Word gets around town easily, so if one person has a bad experience, then he or she will tell friends and family. You will lose out on a lot of customers. However, if you make a true effort to correct the mistake, then you may be able to retain that customer.
Many new startups are intentionally coy about the price of goods or services. This is especially true for service industries, such as remodeling companies. Many sales representatives are worried that delving into the price too early may scare off customers. However, everyone is going to be concerned about price, and even as you are talking about all the perks of a service, a customer is going to think, “How much will all this cost?” Be upfront about what the customer can expect to pay.
Many new small business owners fail to prospect properly. Even if you have a steady stream of revenue coming in from regular customers, you still need to make an effort to reach new customers in the community. You will naturally lose some of your regulars as the years go on, so you need to always remain proactive in the marketing department.
A good number of sales representatives do not know how to close properly. Some close too soon and lose out on selling additional products or services. However, there are others that close too late. This procrastination may encourage the customer to seek another company out that can get the job done sooner.
While most startups can expect to encounter some mistakes in the early stages, you want to avoid doing something so catastrophic it will end your business. Take these lessons to heart so your new business can get started on the right foot.