In business world, branding mistakes are quite common. They are most often or not, unavoidable and teach us more than our success do. But not all mistakes are considered equal. Unlike big established brands, when a startup makes some crucial mistakes, it can cost money and sales. These mistakes if committed, are not easy to recover from for a very long time.
In many cases, business owners often start with too little capital in hand, unrealistically thinking they will soon start earning the profits. In this process, they end up underestimating the additional costs that can occur in the meantime. They often ignore emergencies too like building a repair or need of a new equipment. Yeah, it’s very important to be optimistic or positive, but planning to go ahead without any capital in hand, is like feeding yourself to crocodiles. The mistake will not only delimit your business potential but also eat all your personal assets.
Many of the startups don’t bother to work on brand messaging before launching the business which ends up becoming another big reason of not becoming a brand. The mistake of not exploring and exploring the brand message before selling the product is quite common and leaves a huge impact on the business brand.
For every business, it is must to understand and analyze brand message thoroughly. No matter through which channel your audience is watching you, it should give them a consistent feel with a themed design and messaging to leave a long lasting impact.
If a business doesn’t record from where and how the cash comes in and goes out, then it will never be able to build realistic business predictions. Not tracking cash flow will make your budget go out of budget very quickly. Additionally untracked payments and sales will create more confusion.
Therefore it is must for every business to have an accounting system that can keep track of incoming as well as outgoing cash. Having a proper accounting system will work as a lifesaver by streamlining all the accounting tasks of your business. Not to say, the sooner you will have a control over your cash flow, the brighter will be the financial future of your business.
I have seen many entrepreneurs who are so taken by their idea that they end up overspending to meet their idea of perfection. They invest high end office space instead of an economical one just because everyone else is doing the same. For eg. Accenture paid $100 million to design a professional logo but as a startup, can you really afford to pay this much amount for a logo?
There are many free logo maker tools available online using which you can create your own professional logo. Similarly, instead of hiring someone to create a very professional website, with some simple steps you can create your own website too.
Although in future, you can definitely spread your wings to make these elements more appealing, but during struggling period, these practices should be avoided otherwise it will ruin all your budget plans.
Hidden operation costs
Yes, you are a perfect entrepreneur, but when you talk about financial prudence, there are chances that you still miss out on some finer points. Startup owners often commit the mistake of considering only obvious costs without noticing associated hidden costs.
For eg, you have considered the cost of a heavy duty laser printer but you forgot to budget associated possible expenses of printing. These untracked expenses make you out of budget before even making the first sale. Therefore it is important to overestimate your budgets to accommodate margin of error.
So guys, the key here to get success is to match your entrepreneurial passional with practicality. Yes, your startup has the full potential to grow and achieve success, but only luck won’t get you there. You have to be smart and you have to be wise with your choices. By avoiding these pitfalls and doing your share of your hard work, you will be long ahead in the game.
Author Bio: Prince Kapoor is Freelance Marketing Analyst and Blogger. While not working, you can find him in gym or giving random health and marketing advises to his colleagues.