Are you a new business owner? Chances are that you have already made one or more of these mistakes. It is better to figure the common pitfalls out early on. So, here is a list of 3 very common mistakes that you really need not be ashamed of if you’ve made them – since you are definitely not alone.
#1. Bad Budget Allocation
Bad budget allocation is almost always the case with new businesses.
Your advertising, marketing, outreach, infrastructure, payroll, and on and on – all of them need to be set in stone from the beginning itself.
A business cannot run if the budget allocation is weak.
For example, businesses might spend a lot on offline advertising and only 5% on digital marketing. While actually, businesses should split their advertising across fields including the two mentioned above and see what is performing better. This will help them set clear objectives and allocate the budget more effectively.
#2. Being a One-Man-Army
Many new business owners think that they can do it all by themselves. From making ads to running them, and from calling up those leads to trying to convert them and building the product or providing the service.
Even if you can theoretically do all of it because you have the skills, what you do not understand is that sadly, you are not a robot.
No human being can handle a diverse set of work daily. This leads to frustration, impatience, and inefficiency in the long run.
It is better to spend money to get specialized people than to spend time and ultimately pay with your doom.
#3. Ignoring the Importance of Digital Marketing
The same old conventional marketing tactics are working no more. Even if they are, the results are extremely poor or extremely slow. It is like getting an old car with a nearly dead battery to race.
We are in 2021. If you are smart enough, you should be able to get ahead and stay ahead of your competitors easily if you use newer marketing tactics.
What are these new tactics? Well, that depends on the industry you are in.
For example, modernized branding helps some tech startups, whereas building high-volume backlinks helps financial service providers more.
Note that a “new” marketing tactic does not mean something that was invented a month ago. It means something that has not seen widespread adoption yet.
Backlinks – for example – are a tool used only by SEO-savvy marketers. It is also a tool that works its magic regardless of the size of the business or the industry in question. In the words of Samuel Adams, the managing director of the digital marketing brand Promo Leads, “High-quality backlinks from several sources can be worth a year of content marketing and organic social media buildup. It’s that powerful.”
The downside? It is also expensive. Getting a few backlinks might cost you hundreds of dollars. But in the end, they will be much more than just worth it.
These were the top 3 mistakes. However, this is not where the list ends. For example, a case study by Promo Leads classified new business owner mistakes in these categories:
- Lacking a marketing plan altogether.
- Spending without limits even when profits are not steadied.
- Underpricing the product or service simply to “break” into the market.
- Messing up the formation of the business as a legal entity.
- Not protecting their intellectual property with the right claims, contracts, and registrations.
- Not having a legal plan of action or person of contact from the very beginning.
- Taking small profit signs over small periods as indicators of the “trend”.
It is easy to get hasty. Many small things cloud your judgment. Bracing through the storms with a clear head takes time and experience. Practice avoiding these common mistakes and you will be on your way to running a great business in no time!
Hopefully, you now have a clear idea of where you have been going wrong. Running a business is not an easy task. Sometimes, you just do not have the time or money to invest heavily in marketing, and that is alright. Wasting money on bad marketing is the worst business decision to make.
Do it right. Avoid the newbie mistakes. And spend only on good marketing tactics that are working right now.