It takes a lot to make a good business owner great. One of the things that sets great business owners apart from the rest is being able to avoid doing stupid things and to recognize dumb mistakes prior to making them. You don’t need to do more smart things in order to be successful — you just have to make fewer dumb mistakes. To help you be successful, we’re sharing some of the top mistakes to avoid as a business owner.
1. Not Knowing Your Market
It doesn’t matter how great your product or service is. If you aren’t reaching the right people, you aren’t going to be successful. Not knowing your market is by far one of the biggest mistakes you can make as a business owner. Figuring out who your market is, how big it is, and how you’ll talk to them is the key to success. Keith Cunningham created TUFFS (The Universal Formula for Success) that includes three simple steps:
- Find out what they want.
- Go get it.
- Give it to them.
If you follow this formula, you’re guaranteed to succeed and prosper. When it comes to figuring out what they want, you need to determine the void for your customers and fill it for them. Find out where the customer is having a problem, then present a solution on how to fix it. People aren’t going to buy your product unless it meets a need.
2. Thinking Money Solves All Problems
Another one of the big mistakes to avoid as a business owner is thinking that money solves all problems. Just because you have money, doesn’t mean you don’t have problems. When it comes to getting investors, you want to first make sure that you have a solid business plan. If you have problems within your business, those problems won’t disappear just because money is being invested. However, if you have a good deal, money can make it even better!
3. Forgetting the Importance of Making a Profit
It’s easy to get caught up in wanting your business model to solve a problem for the consumer and forgetting about the need to make an actual profit. Too many business owners stop at providing a solution instead of taking it one step further to convince consumers of the value of their product. You must prove that what you’re selling can add more value to a customer than their money. By adding value for your customers and your investors, you’re increasing your chances of being successful.
4. Not Taking Criticism Well
One major downfall business owners face is not being able to take criticism well or admit wrongdoings. If you can’t admit where you fall short, then there won’t be any room for growth. Starting your own business requires immense skill, self-confidence, and determination. Unfortunately, a lot of these qualities that make a great entrepreneur can easily turn into arrogance. Arrogance can be the downfall of a business owner. Believing in the perfection of your own ideas leads to the tendency to dismiss criticism and ignore legitimate concerns and questions from both your customers and your investors. You have to be able to listen and surrender your need to be right in order to be successful and experience growth.
5. Ignoring Your Competition
Our fifth biggest mistake to avoid as a business owner is ignoring your competition. Thinking you have no competition ties in with our previous point of being arrogant. Everyone has competition, regardless if they are direct or indirect competitors. Recognizing who your competition is, along with their strengths and weaknesses, allows you to effectively position your company in the marketplace. Not having competition means you don’t have a market that’s educated or interested in what you’re selling, and you’re less likely to get investors.
These are only 5 of the biggest mistakes to avoid as a business owner. To learn about more mistakes you shouldn’t be making in your business, read Keith Cunningham’s Ten Biggest Mistakes.
