Running a start-up requires patience, courage, and resilience. You can have the best talents, the right location, and ingenious offers. But if you keep on making the wrong decisions, you can put your brand at risk of failure.
It is not enough that you have the drive to succeed. If you want a successful brand, then you don’t want to commit the same mistakes thousands of other startups made in the past. Even today’s most successful entrepreneurs learn the hard way for making the following slip-ups.
Thinking a Small Business Loan is Your Only Option
When starting a business or growing a brand, you will need enough funds to sustain business needs. Startup entrepreneurs often think a small business loan is their only choice. And when they take a business loan, they often do it the wrong way.
For one, many would use their home as collateral. Once they are no longer able to pay off the loan, this puts their home at risk for foreclosure. Although an experienced foreclosure lawyer will guide you through the bankruptcy process, you have other loan options to avoid this from happening.
You can opt for an SBA loan instead. These usually require no collateral. This can be a good choice if you need an amount less than $25,000. Any amount larger than that will require collateral.
Another unsecured loan option is peer-to-peer lending. You need to choose a peer-to-peer platform and find investors who will fund your loan. You will then pay it back as you would repay other loans with interest.
The key to knowing all of your available options and weigh in their pros and cons. Knowing what your options are will give you a better idea of which one will work best for your situation.
Making Wrong Hiring Decisions
Some startups hire people based on the cost. They do this just to fill in the open positions. Others would simply ski hiring and increase the workload of existing employees. This puts their productivity at risk while lowering employee satisfaction.
If you want your business to thrive, ensure you always make the right hiring decisions. First, make sure you have the right recruitment team. Hire based on the skills, motivation, and knowledge especially for tasks that require expertise.
There are times when candidates will deceive you just to get the position. They can end up toxic, unproductive, or clueless about their jobs. You have the option to provide additional training, manage them well, or let go if nothing changes.
Don’t forget that you should not ignore your candidate’s personality. It would be best if their character can match your company culture. A personality test can be a good way to gauge their personality.
Believing Your Brand Has No Direct Competitors
You may have unique offers that put your business ahead of the rest in the market. But it is quite impossible to be the only business in your category. Even if you managed to create a brand-new product that no one else has to offer, soon enough, competitors will surely pop-up to match your idea.
So, make sure you always keep an eye out for your potential competitors. Find ways to differentiate your business. Always keep your eyes and ears open for new businesses in the area.
Don’t be discouraged once another business manages to offer your same products and services. Use this as a challenge to rise up. Know that in business, competitors are what make the game more fun and challenging.
Taking Your Existing Clients for Granted
It is understandable that you want new customers coming in each day. This is the very reason why you spend so much on marketing the brand. But if you only prioritize customer acquisition, you can end up losing your best clients.
Don’t forget the first people who trusted your brand and paid for your offers. Your loyal clients will always be your best customers. Take them for granted, and they will soon find other businesses that can take care of their needs.
Make sure you keep your loyal clients engaged. Don’t forget about them when marketing your offers. Give them freebies, discounts, and tokens of appreciation.
Keep in touch with your old clients and thank them for their loyalty. If they have any problems with your brand or product, be quick to act and resolve their issues. Always offer excellent service, acquire feedback, and don’t hesitate to ask for referrals.
Running a startup comes with numerous challenges. It will test your decision-making skills, resilience, and patience. The only way you can survive in this competitive market is by making the right choices at the right time. Know that mistakes happen and you should not be afraid to fail. But that does not mean you should commit the same mistakes others already managed to experience.