Brand building = Passion + Skill + Innovation + Right Timing
Over 50% of new businesses fail in the first five years!
Every entrepreneur wants his brand to be the customer’s 1st choice. But launching a brand and engineering the brand gears to strides is challenging. Mistakes are the opportunities to learn. But finding ways to rectify them or taking steps before pre-launching your brand can save disaster big time! In fact, much of them depend on the entrepreneurs’ mind-sets, specific tactics as well as triggering the right stitches in time.
It is evidenced that one single mistake can smash the best of opportunities and hamper growth. Many brands have mistakenly failed to identify business opportunity to improve that ended up in graving consequences.
Remember how yahoo lost its large search market dominance? The reason was simple- Lack of visionary approach. Their failure in transitioning to new business models proved to be a competitive advantage for Google which optimizing its own business model. While Yahoo failed to prioritize its business model by not investing into it, Google empowered their own business strategy (keyword advertising).
The result? Well, by the time Yahoo realized the criticality of their business tool to stay up in the competition, Google became already dominant! So once upon a time the biggest “search market tool” failed to gain traction. Today, within a span of 15 years, Google’s revenues grew 25X from that of Yahoo’s and emerged to be the most sought-after search engine of this time.
This example is a great lesson on success and failures for entrepreneurs. An opportunity missed could be fatal for a business. To make sure that you don’t make such mistakes, here are 10 common errors that you should avoid before it is too late.
- Loosing brand focus
This is a familiar mistake by brands. Never lose focus on brand’s main reason of existence. Each brand business starts with a unique focus, a strong service category and an angle of business that distinguishes the service line from the competitors. E.g., Domino has narrowed down its focus to “home delivery” being the largest pizza supply chain.
- Saving expenses on major strategic goals
Trying to save investments on major brand drivers might cost you big! Your brand product or services might be “revolutionary” hence; spending a bare minimum on business strategic operations can kill a company’s eventual outcomes.
The best example to this is yahoo that restrained cash-flow in supporting engineering ideas while the competitor Google was exploring interesting engineering opportunities with major impetus on keyword advertising, the universally recognized search engine key.
- Expecting fast results with minimal efforts
If you want your business to grow fast, you have to explore specific steps to reach your best profitable business strategy. Nothing comes without hard work. You cannot expect miracles from minimal efforts. Sometimes, putting best efforts out-of-the norm might yield to long-term business results. So stop expecting more, if your efforts are less.
- Sticking to short-term goals
A business is less likely to thrive in the competition if the vision is on short-term wins. Setting short-term goals might fetch short-term wins but might subvert long term goals. A business model should be subject to all-weather business model, owing to confront strong competitors’ & global slowdown of the consumption market. Avoid less-than-honest-business strategy to make a deal. Instead stick to long term rationale business plan.
- Being only competitor-oriented
Is your business too much focussed on your competitors? Watch out, because if you are, you might end up with a similar product which is non-profitable, built up in similar fashion with no major distinguishers. Try to appear different in consumer’s eyes!
- Spending hefty on advertising
So you have launched your brand and are too confident about your product to take-off rapidly. Being confident is fine but over confidence might end up in taking wrong decisions on advertising. Try not to spend heavily on marketing; rather craft your ads via PR efforts to save time and money.
- Setting unrealistic goals
A business plan without definitive “long-term” or “short-term” goals might spell critical to long-term sustainability of business. Clarity in goal-setting gives specific controls to brand in profit-making and also saves the enterprise from facing unknown and serious threats.
- Overspending on impractical strategies
Most businesses are too obsessed by their business idea. Most of the times, they fail to realize that overspending on fancy marketing strategies and expecting pipeline lead dreams can damage the brand value proposition. Moreover, this might lead to serious budget constraints during emergencies or even eat up your personal finances. Avoid being carried away by your expensive business idea; instead, consider the economic options readily available with you.
- Ignoring hidden operational costs
Missing out hidden enterprise costs and associated costs that are not covered within the budgeted amount might contribute to serious shortage of business project budget. Set a good budget that also counts upon all hidden costs related to your business. This calculation will save your business expenses in future.
- Underestimating competitors
Are you too excited about your product specialty? Just watch out. In the attempt of over valuing your product, make sure you count upon your competitors’ strength! This is the biggest mistake entrepreneurs mostly commit! Who knows, you might be facing your direct competitors soon who already has a major share in your niche market?
Mistakes are inevitable but learning about how to take timely measures during appropriate hours & situations might save the deal of the day! Avoiding these 10 brand pitfalls will not only keep you prepared but also save your business time, money and efforts!