Starting a business is a bold step that requires a lot of courage. Only very few people who plan to start a business end up going ahead to start a business. However, it is very unfortunate that one in every five businesses close up before the third year of their existence. This is because of some mistakes made by start-ups. If these mistakes are avoided, the chances of the start-ups surviving will increase significantly. Here are some of the mistakes made by start-ups that endanger their survival.
Not having a budget for running cost
Major mistake start-ups make is not having a budget for running cost as part of their capital. In most cases, your business is not going to make a profit by the third month or even the sixth month. If your company is one that has very huge prospects and you are starting on a grand scale with huge rented property and many staffs working for you, you might not have started making a profit by the eighteenth month. During this period, it means you will not make money and you might have to continue to take money from your pocket to run the business. If you have not made provision for this type of fund and you can’t raise it by the time you need it, it might just result in the closure of your business. You should be sure that you have enough money to run your business for a year (salaries, utility bills, repairs, restocking, and other things),
Not collecting reviews
Another mistakes start-ups make is not collecting review. When you are providing satisfactory services and products to your customers, collecting reviews allow you to have a trail of positive testimonies that include reasons why people should patronize you. Reviews allow you to get customer feedback from your customers, while also acting as a rich source of information to those who want to patronize you but are scared since they are about to use your business for the first time. This is especially if they have had a bad experience with a former online vendor.
Poor customer service
Poor customer service is another mistake start-ups make that could quickly lead to their closure. You are yet to have too many customers and the few that you have, you are not treating them well. You do not have a customer service where they could report to when there is an issue with sales and purchases or when they want to make an inquiry. This could lead to losing customers before you make them. Customers are a very important asset to your business as having a satisfied customer means you not only have a customer that will continue to patronize you but one that will also tell others about your business. You never can tell how much influence a single person can bring to your business.
Marketing is another vital thing that start-ups must do. You are just starting and it is as good as nobody knows about your organization and what you do. The more marketing you do, the faster people know about your organization and your services, and some of them will be sure to patronize you. Without marketing, however, prospective customers might not know you even exist at all.
No online presence
Currently, an online presence is one of the major things every organization including start-ups must invest in. A professional website, social media accounts, email marketing, and collection of reviews online are some of the form of online presence a start-up must have. Not having this will lead to losing many customers that would have started to patronize you through your social media account.