Time, money, blood, sweat, and tears all go into starting and running your own business.
The very last thing we want is to pour our heart and soul into building a successful business just to have it blow up in our face.
In this article, we’ve compiled some common pitfalls that destroy successful companies, burners most business owners never see coming.
Whether you’re a seasoned entrepreneur or taking baby steps into the vast world of business, the knowledge shared here will lead you down the path to success.
- Unsafe Cybersecurity Practices
One of the biggest threats to a business is having poor cybersecurity measures. Cyberattacks lead to data breaches and financial losses, both of which can damage your company’s reputation. Protect your business by:
- Using strong, unique passwords.
- Updating your software and systems regularly.
- Training your employees in cyber safety techniques.
- Backing up your data to prevent data loss in case of an attack.
- Utilizing a VPN, like a Surfshark VPN download.
The Bureau of Labor Statistics states that approximately 20% of new businesses fail during the first two years of being open. Don’t be another statistic!
- Poor Financial Management
Poorly managed finances can sink your business faster than the Titanic. Don’t get caught weathering the storm unprepared. Having a solid financial foundation is key to staying afloat and ensuring the longevity of your business.
To avoid a financial crash, be sure to:
- Define a detailed budget, and don’t stray from it.
- Accurately record all financial aspects and make it a habit to review them.
- Minimize unnecessary expenses and look for more economic alternatives.
- Keep an emergency fund by preparing for the unexpected.
- Neglecting Customer Feedback
Your customers are the lifeline of your business. The worst thing you could do is disconnect from your lifeline, so pay attention to their needs and feedback.
Studies have shown that 96% of customers say a company’s customer service significantly impacts their choice of loyalty to a brand.
Your customers are invaluable, and ignoring their suggestions or complaints will harm your reputation in the long run. Actively engage with your customers and address their needs.
Here’s what you can do:
- Set up feedback channels and encourage customers to share their thoughts.
- Analyze customer input.
- Make necessary improvements to your products or services.
- Acknowledge customer feedback and express gratitude, even if it’s not positive.
Growing a loyal customer base and encompassing a positive brand image will inevitably attract more future clients to your business.
- Avoiding Innovation and Marketing
Staying in one place, avoiding change, and not exploring all possibilities as a business owner can result in a stale, stagnant business.
It’s so important to stay relevant and competitive in your industry. This requires constant marketing and innovation.
Buying products on social media, primarily Instagram, has become the new norm for 58% of Gen Zs, and even 45% of Millennials agree.
Be sure your business stays ahead of the game by:
- Staying up-to-date with industry trends.
- Adapting strategies based on the competition.
- Investing in marketing services to reach new customers while retaining existing ones.
- Boosting innovation within your company, keeping products/services fresh and exciting.
- Taking calculated risks and exploring new opportunities.
Don’t Forget It
By compiling these four costly errors, you have a perfect “what-not-to-do” list. The success of your company weighs heavily on staying relevant and being adaptable. Poor cybersecurity practices, inadequate financial management, ignoring customer feedback, and neglecting marketing and innovation are surefire ways to burn your business down to the ground. Stay on the path to long-term success, and keep building stronger, bigger, and better!