7 Causes of Failed Business Often Faced with Small Businesses
Starting a business is not always easy. There are so many things to think about and decisions to make. You may also experience pressure, which can ultimately cause you to make bad decisions and can destroy your chances of success.
While there are no fixed rules about what is right and wrong, there are some common and dangerous mistakes many new business owners make. These mistakes are proven to harm their business, even to the point of failure.
Here are 7 of the most common mistakes that should be avoided when you start a small business.
1. Forgetting the Planning Process
Planning may be boring, but without a solid and clear plan, including research into business ideas and market potential, you will walk in the dark. The most important plans to consider are the business plan, financial plan, and marketing plan.
2. Not Setting a SMART Target
SMART (Specific, Measurable, Attainable, Relevant, and Timely). Targets can give you a clear direction when you first start a business and keep you on track for everyday business continuity. By ensuring that your target is a SMART target, you can identify in what direction you want to go, and the specific steps you will take to achieve it.
3. Underestimate your products or services
Oftentimes, a lack of trust in abilities and the emergence of a fear of failure cause you to underestimate your product or service. This is a dangerous condition because it can damage the unique value of the product or service that you offer, and open up the possibility of resentment and frustration.
Stop looking down on your product. This is indeed not something easy, and requires a long process. Do an in-depth market analysis, and find more value in your product.
4. Ignoring New Technology
As a small business owner, technology can provide you with new opportunities that might have been unexpected. Technology can also help make your work easier, more efficient, and more affordable.
New technology might bring a threat to business, and requires a lot of time to learn and understand it. However, if you are reluctant to adapt to technological advances it will damage your business in the long run.
5. Fear of Marketing
The marketing process can be a variety of things, from word of mouth, conventional advertising, to digital marketing. There are no fixed rules about what type of marketing is most effective. It all depends on the type of business and your target audience.
The problem is that you are afraid or assume that you don’t need to go through the marketing process and the audience will come on their own. This is a wrong view. Your audience won’t know your business if you don’t make a marketing effort.
6. Don’t Know Who Your Potential Customers Are
An important part of a successful marketing process is understanding who your potential customers are. You need to do market research to identify who you are trying to reach, where you can find them, and how they will react to your marketing activities.
7. Too Wasteful
Starting a business does not have to require a large investment, but some new business people feel that they have to spend a lot of money to buy the best, from when hiring marketing experts, equipment, to software.
There are usually many other cheaper options with equivalent functions, if you are willing to do further research. So, try to keep the budget as low as possible by finding business support products or services at friendly prices.
Thus the discussion about 7 causes of business failure that often occurs in small businesses. So that your business grows, don’t forget to advertise through the Froggy Ads service, you can start by advertising your product, so that later you can increase visitors on your online business portal. Froggy Ads is an online advertising service that can help you control all your product campaigns. helps you target the marketing target you want and gives you many choices for marketing your product.