If you have a small business, then you have to take into account these common mistakes that entrepreneurs make that can end up bankrupting the business. For a small or medium businesses to be successful, investing time and money in the project alone is not enough. It takes strategy to optimize resources and know how not to squander them. Read on to find the four most common ways that SMEs misuse money.
1. Operating without strategies
The clearest and easiest way to waste money for SMEs is when they work without clear plans and strategies. Every SMEs must have measurable goals under time limits, so that the investments come eventually to fruition.
2. Using inadequate promotion
No one despises a keychain, a hat or a pen, things that are common gifts that are offered to consumers. The downside of this promotion is when you are repeatedly giving them away without waiting for the time to see the results of the impact of such offers. Look for other options that will not cost you much money and are useful for the brand and the customer. In this case, it would be good to search for promotions agencies that have good ideas and innovative catalogs.
3. Not working from home
If you are a new entrepreneur, will you start looking for a rented office since day one? Providing that there is an adequate space for you to work from, you may start your business at home.
You have to consider certain factors like the productivity will be achieved, if it will serve customers in the same way as an office and take into consideration that in this way, employees waste no time to go to work. This is a good business idea for Internet companies.
4. Not hiring the appropriate people to save costs
It is a negative attitude in all types of business for new entrepreneurs. It is a bad practice that had its origin with the arrival of the Internet. These are businesses that are not serious about hiring the person overviewing the digital work (operation, image and customer service), so they try to pay as little money as possible (often to a family member looking for work) to save costs.
It is a mindset that is more expensive to be outdone by the competition that itself takes digital marketing very seriously.