Entrepreneurs are unique. They have brilliant business ideas, often with a natural ability to think outside the box and deliver products and services that reflect their creativity. Some of the best businesses in Australia have come from entrepreneur minds such as John Illhan (Crazy Johns), Dick Smith (Dick Smith electronics, Dick Smith Foods &Australian Geographic) and Ruslan Kogan (Kogan.com) and have expanded globally.
Entrepreneurs are never content. One of their most admirable traits is their sheer determination to keep growing, and push for disruption in the market. However, to achieve success in business is tricky as it relies on much more than having a great product or service to offer.
Let’s examine the top three mistakes entrepreneurs make:
- Ignoring the market feedback.
Naturally, the entrepreneur will love the service or product that they have created, but ignoring the market feedback on it could be detrimental to the overall success of the business. This may mean that ingredients might need to be tweaked; colours changed or even to create different versions of the product for different countries. A great example of this is by fashion retailer Zara, who release clothes and designs uniquely for each part of the world they operate in, to appeal to their consumer’s tastes and culture.
- Overspending cash.
Perhaps the single important factor to always be on top of is your business cash flow. Fluid businesses will be able to weather the storm through expected and unplanned expenses; those who are running on empty will fail. When a business starts making profit it can be tempting to spend the money on things outside the business, but you need to ensure you have a strategy to reinvest in the business to grow as well as enough cash set aside for a rainy day so that if you hit a snag you are able to easily fix it.
- Don’t market to those you would ‘like’ to buy your product.
Market to those who actually will buy your product. You need to understand your target market and be able to delivery marketing and communication strategies that will attract their attention. This needs to be based on some market and consumer behaviour research to find out who needs to buy your product or service, where do they want to buy and how they want to buy it.
Opening a new business or venture is exciting, but being successful in it can often be much more challenging. CAAA Commercial Concierge have a dedicated business advisory team who work with start-ups, entrepreneurs and small business to identify risks while creating strategies for growth. You know your product, but they know the rules of business. If you would like to discuss expanding your business venture, contact our team.