Learning from mistakes commonly made in business
Category Commercial and Industrial News
Whatever field they're getting started in, all entrepreneurs and startups have one thing in common: they need to avoid costly mistakes as much as possible. 3Cube Property Solutions runs through some of the mistakes commonly made by businesses (both new and widely experienced) and showcases how these could be sidestepped. Neglecting marketing, trusting your gut when you shouldn't and not having a proper business plan are among the top mistakes that need to be avoided at all costs.
Mistake 1: Not paying enough attention to marketing
According to research undertaken by Forbes Magazine, eight out of every ten online stores will go out of business in the first two years. These failures are often nothing to do with an inferior product and everything to do with insufficient attention being paid to marketing. The benefits of marketing go far beyond increasing your sales in the short term. In the long term, smart marketing campaigns spread your brand's name, help you to retain customers and improve your company's reputation. As an example of a company that has its priorities straight, Forbes mentions the example of Vantura Cosmetics. Vantura prioritised marketing by ensuring that they had more than 27 000 followers on Instagram and 6 000 on Facebook before launching a single product.
The takeaway: Marketing is just as important (if not more important) than your product. Building your brand creates a firm foundation for success.
Mistake 2: Trusting your gut instead of doing your research
Every business - whether brand new or decades old - needs to do ongoing research. Research is what keeps you in touch with your target market and with what's happening in the worlds of product development, marketing and your industry as a whole.
Part of doing research is thinking carefully about what is happening in your company and your industry, and many a marketing fail could have been prevented if companies did their due diligence in this regard. A classic example from the aviation industry is the Australian carrier Qantas's #QantasLuxury campaign. The campaign seemed innocuous enough: customers were asked to enter a competition by sharing their #QantasLuxury moments. Unfortunately, this campaign was launched the day after the airline was grounded due to a wage dispute. Disgruntled employees and customers hijacked the hashtag and the campaign was a disaster.
The takeaway: A little forethought goes a long way. Every campaign needs to be considered not only on its merits but also in the context of what's happening at the time. Also, communication between departments is key. If Qantas's social media team had been kept up to speed, the campaign could have been launched at a better time.
For another example of a time market research could have spared a company an expensive lesson, let's cast our minds back to the early 1990s. The US-based beer brand, Coors, decided to cash in on the growing bottled water trend by launching a brand called Rocky Mountain Sparkling Water. The crux of their mistake was including Coors branding on Rocky Mountain packaging, leaving a confused target market to assume that this was some kind of alcoholic water.
The takeaway: Clear branding is a priority. If you have two different products, it can be detrimental to market them under the same umbrella.
Mistake 3: Not having a well-thought-out business plan
A business plan is the roadmap to success for a startup. It should contain a summary of products and services, as well as a marketing strategy and budget. "Winging it" is not an option when it comes to launching a business, as entrepreneur Lucinda Cross learnt to her detriment. Cross started a business as a virtual marketing assistant, renting premises on Manhattan's prestigious Park Avenue without having any real idea of how she was going to attract clients. With no real plan or direction, her business failed. After consulting with a business coach and putting proper planning in place, Cross launched a successful business. This time, she focused on a small niche and proved that with the right approach and a good business plan, success will follow.
The takeaway: A business plan does more than provide guidance: it can make the difference between success and failure for an entrepreneur.
Having the right premises is just as important for a business as paying attention to marketing, doing your research and having a good business plan. If your business is in Gauteng, 3Cube Property Solutions has your needs covered with a wide array of commercial and industrial properties for sale and to rent. Contact us for more information.
Author: 3Cube Property Solutions
