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Starting a business is hard work. It’s even harder when you’re doing it alone. Unfortunately, many solopreneur businesses fail within the first few years. This can be due to various reasons, but most often, it’s because of one (or more) of the following five mistakes. In this blog article, we’ll look at each of these mistakes and provide tips on avoiding them. So if you’re thinking about starting your own business, make sure you read this post! Especially #1 – MARKETING FOR A SMALL BUSINESS!
The 5 Most Common Reasons Solopreneur Businesses Fail: And How to Avoid Them
1. Lack of marketing
2. Lack of planning
3. Poor customer service
4. Financial instability
5. Not hiring help
1. Lack of marketing
Small businesses often struggle to get their name out there. Without a proper marketing plan and budget, it can be challenging to compete with larger competitors. But marketing is essential for any business – big or small.
What is marketing in business?
Marketing is a process of creating value for a company by creating and distributing products or services. It’s about understanding customer needs and wants and developing a strategy to meet them.
Marketing is essential to the success of any business, whether it’s a startup or an established company.
Without a marketing plan, it’s challenging to reach your target audience and create awareness for your product or service.
Here are some tips on how to market your small business on a limited budget:
- Make use of free social media platforms like Pinterest, Twitter, and Instagram to gain website traffic.
- Create a website and blog, and include SEO keywords that your target market uses in their online searches.
- Develop relationships with other businesses and services that serve the same niche as you. You can cross-promote each other’s products or services.
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2. Lack of planning
Another common mistake made by solopreneurs is failing to plan ahead. Many business owners don’t take the time to develop a business plan or set goals for their company. As a result, they often struggle to stay afloat financially or feel overwhelmed by the day-to-day tasks of running a business.
It’s essential to sit down and map out your goals for the next year – both personal and professional.
Here are some questions to consider:
- What do you want to achieve?
- How will you get there?
- What are your financial goals?
By taking the time to answer these questions, you can develop a plan of action that will help keep you on track and motivated. Refer to Branding Bites Episode #112 – How To Create A Yearly Review To Achieve Your Small Business Goals.
3. Poor customer service
Customer service is another vital aspect of running a successful business. In today’s competitive marketplace, it’s more important than ever to provide excellent customer service to your prospects and your clients. But many small businesses fail to do this, resulting in poor reviews and unhappy customers.
There are a few things you can do to make sure your customers are always happy:
- Respond promptly to customer inquiries, whether by phone, email, or social media.
- Train your employees on how to handle customer complaints or concerns properly. One tip is to write up common snippets or replies that you and your team can use to reply to common questions.
- Go above and beyond to resolve any issues. Even if means offering your time for free to fix a problem – it’s better than leaving a bad taste in a client’s mouth about your company. The last thing you want is for a client to ask for a refund.
- Lastly, over-communicate expectations and project progress and set up communication systems to help you do this.
4. Financial instability
Finally, many small businesses fail because they are not financially stable. This can be due to a number of reasons, such as overspending or failing to diversify their income streams.
There are a few things you can do to ensure your business is financially stable:
- Keep track of your expenses and develop a budget. I use Quickbook Self-Employed, which seamlessly organizes all our expenses into categories and makes paying taxes a breeze. Click here for a 50% coupon Quickbooks!
- Diversify your income sources. Don’t rely on just one or two clients or customers. I also don’t like to keep my income based on one type either. I service 1:1 clients, a membership, and offer online courses within my business.
- Invest in marketing and advertising so you can attract new business. If you’re not investing in marketing and advertising, you’re missing out on a crucial puzzle piece. Without marketing, your business will struggle to attract new customers and grow. Advertising helps boost awareness of your business and its products or services, which can lead to more sales and growth.
- Lastly, use the Profit First method to run your business. This concept was introduced to me a couple of years ago when I read Profit First by Mike Michalowicz. Since then, it’s completely changed the way I sustain profitability and set up pricing for the products and services in my business. I’ll like the book and audible in the show notes but it’s a MUST READ!
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5. Not Hiring Help
As I’ve mentioned thus far, there are several reasons why solopreneur businesses fail, but one of the most common is that solopreneurs try to do everything themselves.
You wear all the hats, from marketing to accounting to customer service, never delegating or outsourcing tasks. It’s that stubborn entrepreneurial spirit you have inside that believes you can do it all and need to prove to everyone you can.
As a result, you quickly become overwhelmed and bogged down in the day-to-day details of running your business.
Additionally, solopreneurs often lack the skills and knowledge necessary to thrive in all areas of your business.
You may be great at sales, for example, but have no idea how to manage your finances.
By hiring help and delegating tasks, you can free up your time to focus on the areas of your business where you excel.
You can also avoid burnout and keep your business on track for long-term success.
Resources available to help you learn more: Small Business Tips
How To Create A Yearly Review To Achieve Your Small Business Goals
12 Essential Business Tools You Need This Year
What Is Digital Marketing And Why You Need It
Recap: Small Business Success
If you’re thinking about starting your own solopreneur business, make sure you avoid these common mistakes! By following these tips, you’ll be well on your way to success.
And when you are ready to free up time in your business and still increase profitability – set up a free strategy call with CORE Brand Marketing Group. As a full-service branding and marketing agency,we take care of all the details so you can focus on what you’re good at – running your business. With our help, you’ll be able to reach more people, generate more leads, and gain more clients without ever feeling overwhelmed again. Go to corebrandmarketing.com to fill out the application for a free strategy call.
Do you have any questions about starting your own business? Leave a comment below or contact us today! We’re always happy to help.
Starting a small business can be difficult, but by following these tips, you’ll be well on your way to success.
Make sure to market your business effectively, plan ahead, provide excellent customer service, ensure your business is financially stable, and hire help. If you have any questions about starting your own small business, don’t hesitate to contact us today! We’re happy to help.
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