Thanks to the internet and the availability of all the connectivity we could ever need, it has never been more appealing to start a small business. Whether you’re selling stuff from your home or simply connecting people looking for a service, all the success stories we read about brands like Uber and AirbnB make it seem like starting a successful business is as easy as a few clicks.
While there is some truth in the idea that it’s easier to start a business now than it may have been in the past, it is important to remember that 80% of small businesses fail within the first 18 months. So what happens when that spark of inspiration strikes? And how can you make sure that you don’t fall into the trap and join the countless other failed businesses out there?
This article is going to focus on one area of business development that is often overlooked by over-zealous entrepreneurs – marketing. By highlighting three common marketing mistakes, you should be able to learn what to do to steer the ship to success.
A Lack Of Due Diligence
Imagine you stumble upon a really inventive, unique business idea. You chat with some friends and colleagues about it and they seem to agree that it’s viable. You take out a loan and adjust your finances to gather capital, and in a few months you have a business.
You then realize that your business idea isn’t unique, your pricing is wrong, there’s no market in your area and you haven’t got the supply contracts that you need in order to succeed in place.
All too often budding business owners dive right in without doing the required due diligence, particularly in the realm of marketing. Before throwing money around, you need to be certain about what the landscape around your idea looks like. The internet is a great resource for scouting out ideas, even in their infancy. Check out a site like Kickstarter to see how original your idea is.
From a marketing perspective the easiest way to check out exactly who’s doing what is to take a look around you, both online and in the real world. What kind of advertisements are you being served on Facebook? What happens if you search for a similar business to the one you want to start? Have you seen any traditional advertising by a similar company?
You can also contact a patent lawyer to find out just how viable, original, and legal your idea is. Take the time to do research and identify an actual gap on the market before you take things further.
A Lack Of Planning
Once you’ve found yourself a market it is absolutely crucial to put together a marketing and business plan. It might seem backwards, but you can build a better plan once you’ve identified your market. A marketing plan is an outline of the way in which you will divide available funds to reach specific business goals. For example, if you’ve identified tech-savvy 19-year old males as your target audience, a marketing approach built on social media marketing might be more effective than using magazine ads.
Your marketing plan will help you understand the amount you’ll need to spend, how many people you can potentially reach, and how many potential customers you’ll have to convert to break even or start generating a profit.
Having a business plan isn’t a good idea – it’s essential.
A Lack Of Flexibility
Once you’ve done your market research, identified your audience and competitors, and raised the finance you need, it’s time to set your business plan in motion. If you’ve been realistic with your expectations and managed your finances conservatively, you should find that things move along nicely. However, there is one massive variable in the equation of business – the market. You can never predict what people are going to like. And more importantly, what they’re going to invest in.
The best business owners have the intuition and instincts to know when to tough it out and wait for the hard times to pass, and when they need to rethink their business plan. There is no shame in reassessing your business model in the light of new evidence, provided you don’t give up at the drop of a hat. Again, do your research, crunch the numbers and decide on a practical plan of action.
Final Thoughts
Marketing and starting a new business isn’t easy, and there will be bumps in the road, but as long as you plan ahead, market to the right market, and balance flexibility and structure when it comes to your business plan, you can succeed.
