Again overconfidence it is behind a common misconception when business promoters fall in love with your product or service. With an innovative product, who would not think that when he put on the market it will be removed from the hands, as we say colloquially?
This overconfidence in most cases generates a poor business planning.
An important point is to communicate the product well, and this is the error committed in most cases, lack of training. You can master a subject and have an excellent idea, but you have to master an environment that usually do not know. Not enough to know how the product, you also have to know how to sell.
This maxim becomes almost a commandment when it comes to innovative products. If the client does not know an article and does not know what it is, there is little chance of acceptance without a marketing campaign.
Bad design marketing plan
A little marketing plan tailored to the needs of business or does not fit the market, and even try to cover too, is a big mistake led marketing in origin in a lack of reflection on the company itself. A common misconception is overconfidence in believing that a company can be based only on having good contacts forgetting the fundamental part of making a business plan, market research, etc.
This lack of planning is materialized in significant errors in making decisions, for example, make a bad catalog to forward to the desired or unequivocally what is offered the opposite feeling, which generate a precipitous flight of customers . So, you can not consolidate an unknown company or attract customers communicating bad product.
When making a marketing or advertising, you have to be very clear about who you go, what you want to achieve and how far you want to go. You have to stop and think enough business plan and mount with sufficient data, see what products will be sold, who the competitors are, what are your strengths and what are the strengths of the market are, after all that paying attention and wooing well.
Selling to a wrong price
Most entrepreneurs who have serious difficulties confesses to price their services. Sometimes ignorance of the value of competition, and more often for certain inferiority complex when it begins, many end up putting too low a price for their services.
Mont’s a company and you feel that others are better than you, and therefore their costs are much higher. Even if you trust your ability to do things right, you think the brand of your competitors has much more behind than yours, but that is not true, the most common misconception is that to be competitive and attract customers put a too cheap price your products, and create the opposite sense, because the customer perceives that if you are cheap is because you will not provide good service, so you devastates your image.
Go to the product before the market
When you develop a business plan, you’re doing a business plan for today. Your current conditions, financial, human resources, with a very specific market situation at that time … But we must not forget that the market is completely changing and there is a huge turnover of products. If you focus on the product and you are not prepared for the changes that occur in the market you run the risk of ending up like Kodak. A brand that brings together the monopoly of traditional photography, and almost left out of the market because it failed to adapt. And if that happens to Kodak, imagine an SME.
A change of course in time is what will allow further growth. From the original idea what ends up after the business there is always a great distance. And this is something positive. There are very few companies in the world to do one thing. Everyone diversifies into his. And the SME must use what undoubtedly is its main advantage: when you have a small vision is much easier to adapt to changes. But large companies have such a large structure that is very difficult to change. There are thousands of opportunities that can be tapped at any time, but you have to make the decision to gamble.
It is very common to make mistakes in the distribution when a company tries to launch a new product on the market. Or when simply aspires to a larger market and has not planned well the dimension of the challenge.
A miscalculation in the distribution of a new product can make us lose a good business opportunity. If the product is really attractive to a mass of enough customers, once a competitor will get larger you copy the idea. And possibly it will better position because he may have learned from your mistakes.
Planning is about the only tool we have to prevent a large surface lance similar to our product and leave us out of the market. So if you have a breakthrough product, and you go quickly from 10 to 500 customers, who can not attend, it is likely that new competitors arrive seize that demand you produced with your product. New competitors who, if also have been sized correctly, you win the battle.
An inadequate product
The risk of launching an inadequate product for a particular market is something that almost always assumed by the opportunity that may involve entering a virgin market. The exclusive feature may be the key to success in a product, but it depends on the market you can assume we go meet some kind of limitation, your store format or products not suit all markets. So it is important to learn from the mistake and recognize that our product or format does not work in all cities.
Poor customer service
A good relationship with customers is usually the main competitive advantage of SMEs. However, in this area small businesses can make mistakes due to lack of resources to invest in a good after-sales service, a call center to handle complaints … This error has been key especially in the fall of many electronic stores.
For example, if you have a phone order business, the key is good customer service. You can not fail at this because these businesses work much by word of mouth. So, if you leave an unsatisfied customer does not return a call. Good communication with the customer is key.
Focus on a star client
When your business depends on a client or two, you run the risk that if this goes away for whatever reason or reduces the level of their orders, the business collapses. It is common sense, but often project promoters have no choice but to accept this risk. Who would refuse a large client that can ensure business continuity when just opened? It would certainly be a mistake to do so. As is yes you can choose when to invest in new infrastructure to meet that customer, because our star finally stops performing to customer orders, the company is doomed for over-sizing the business.
Dependence on two major customers, which account for more than 30% of turnover, this problem is they live with many SMEs. Not to multiply that risk, you can put a limit business growth, resorting to outsourcing in areas where you’re not a specialist, such as structures, to allow to continue giving good service without risking much.
Problems with suppliers
A good relationship with suppliers is essential for the stability of a new business is something that is learned two days later, also learn a lot of times these providers are not going to try too well when you’re starting, as prospects purchase of you are almost nil.
Sharpen bad public-customer you are trying to seduce your business is a mistake of those who have shaken even business investment millionaire behind. A common mistake when it is not done, or market study done wrong.
You have a good idea but you are wrong to focus the public to be targeted.