4 Mistakes That Can Ruin Your Business

 Studies have found that within a year of starting up, 21.2% of businesses collapse. This shocking statistic goes to show that while it may be easy to start a business, it’s also easy to allow mistakes to ruin whatever efforts you put into sustaining it after that. Are you scared of failure? Do you need to turn your business around? Here are 4 major mistakes that can harm the growth of your company. Know them and avoid them. 

  1. Lack of customer knowledge

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How can you figure out what your consumers want if you don't know them in the first place? Every small or big business owner needs to have a sound knowledge about their customer bases, including their demographics and behavioural patterns. For instance, if you are a retail store manager, you may want to find out from your customers why they choose your brand over your competitors and vice versa. Talk to them, and let them open up to you about how they discovered your business. Knowledge of these key insights straight from the source can be a gold mine if you put their words into actions.

  1. Running a business because of profits

Entrepreneurs don't really make money; they earn it. And so, if you are a money-minded start-up owner but aren’t driven by a passion for your business - you may hit trouble sooner than you expect. Instead of thinking about how to make money from customers, think about how to add value to their lives. Customers don't just buy products; they purchase items of value from businesses they trust. Produce items or services that solve significant problems, and the results will naturally generate wealth - customers can’t get enough of a perfect product!

  1. Not reinvesting in your business

After laying the structural framework of your enterprise, the business doesn't end there. You need to re-invest in the future of your business by expanding your outreach. For instance, the proceeds from the business can be used to improve your customer service centre, buy new equipment, hire more skilful employees, and brand your business better. You don't have to make the mistake of trying to save every penny when other aspects of the business need reinforcement. Are you a real estate business owner? Then consider renovating your properties to provide more comfort for your tenants. That's another way to re-invest in your business.

  1. Not setting up security barriers

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In today's advanced internet world, every business owner is prone to cyber attacks as long as they have an online presence. In 2016, one out of five companies suffered breaches in their mobile security. After working so hard to establish yourself, you’d be missing a trick if you didn’t put measures in place to avoid being a part of this statistic. And if that means bringing cybersecurity experts like OBT on board, do it for the sake of your business. Cybersecurity firms can offer you managed security services for your IT systems. This includes detecting, preventing, and also responding to potential attacks. 

Remember, great entrepreneurs learn from their errors and those of others, but it is even better to avoid deadly mistakes and save your business from failure.

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