What is Not an Indicator of a Successful Business?

Many new entrepreneurs who start their own business fail to ask themselves these two pertinent questions: What is not an indicator of a successful business and what are some of most common mistakes new business owners make?

What is Not an Indicator of a Successful Business?

They do not realize how much work and time will be involved and as a result they become quickly overwhelmed.

At first, you will have to wear many different hats; you will be the CEO, the general manager, the accountant, the salesperson, the driver, the secretary, the receptionist. You must therefore prepare yourself because there will be moments when you are disappointed or frustrated. You have to realize that business success will not happen overnight. And it may take a year or two or even more before you achieve your expected results.
What is not an indicator of a successful business & how do you avoid it?
To avoid disappointments and build a successful business, here are some of the most common mistakes new entrepreneurs make and how you can deal with them:

Mistake # 1 – Failure to spend enough time understanding and researching the business idea to see if it’s viable
New entrepreneurs often fail because they are not truly interested in the business and are more interested in making money. It is important to start something that you’re good at, love and can serve a need, because you will be spending a lot of time on it. Therefore, spend all the time you need working on your business plan, which should include: your mission statement, your business strategy, research on your target market (demographics), industry analysis (size, economics, politics, trends, success factors, challenges, etc.), your marketing plan, and your financial projections.

Mistake # 2 – Failure to have products or services that add value
The most sustainable businesses, those that withstand the test of time, provide value by providing a product or service that people need. Make sure your products or services provide value to your clients and solve their problems. A great product is a very important indicator of a successful business.

Mistake # 3 – Failure to connect with professionals who can help you get started
Many new entrepreneurs often ask people who have never started a business for advice when starting a new business. So in reality, these people are not in a position to give sound advice. Get a mentor or two and surround yourself with experts who possess skills and expertise that you lack. They will probably be able to let you know what is not an indicator of a successful business and how to avoid it. Better still, team up with professionals who can complement your strengths and cover for your weaknesses.

Mistake # 4 – Underestimate financial requirements
Do you know how much capital you need to start your business and the operating expenses to keep it running? What is the number of clients you need or the price you need to charge to earn a profit? Do you know how long it will take before you earn your first profit or before you will run out of money? Invest the time to work on ALL financial aspects, especially the major ones, of your business before you start. There are many factors that make businesses a success, but a strong balance sheet is often an indicator of a successful business.

Mistake # 5 – Failure to make marketing a priority
Many new entrepreneurs start their business without determining their target market and demography and as a result have failed to attract any clients. Marketing should be one of your top priorities. Devise a marketing plan that will help you determine how to promote your products or services and create a system that will generate more clients for your business.Then, dedicate a good portion of your time and energy to working on and implementing the plan.

Mistake # 6 – Failure to follow-up with clients
New entrepreneurs spend too much time finding new clients that they neglect the clients they already have and end up losing business. Statistics show that it takes seven more interactions to secure a new client than to sell more to an existing client. So develop and maintain a follow-up system to offer new products or services to your clients and constantly and consistently communicate with your existing clients. It is essential to build a very special relationship with your most loyal clients. They are your best audience and don’t let them slip away!

Special Bonus – Learn 32 ‘Guru’ Transformation Techniques when you click on the image at the top right. You’ll learn how to become a life coach in 30 days.

Jeannie Cotter
Editor/Writer
Writer, Coaches Training Blog community

FREE Video Course: How To Build a High Paying Coaching Business

Speak Your Mind

*