5 Mistakes Entrepreneurs Make that Lead to Frustration and Failure
We wish entrepreneurship were a walk in the park, but most days, it’s not. The workload might seem impossible, the revenue might be spotty, and the outcomes unpredictable.
But, here’s the thing—you’ve put your heart and soul into your business, and there’s no turning back. Your business is your baby, and you’ll go to the ends of the earth to protect it and make sure it scales.
You’d prefer not to keep hitting your head against the wall because of avoidable missteps. But, since you’ve launched a business intending to grow and scale it, you’re probably due for some tips to save you from frustration down the line.
#1 Overpaying for Website Changes
Congratulations! You’ve just updated your website and have added some stronger features to add that nicer user-friendly touch. And let’s not mention, it looks fresher. You’ve got a killer headshot, snappy copy, and beautifully coordinating colors. And while everything looks good and functions properly, have you considered the hours if you’re overpaying for the service?
Software developers perform knowledge work that they complete in inconsistent bursts of time. Unlike manual work that produces predictable outputs, this work leans toward ambiguous timelines and workflows. That said, it’s easy for your software developer to overestimate the amount of time it will take to get the work done.
It’s safe to say software developers despise managing and tracking project timelines. They would especially dislike expecting to recall every aspect of their work (which is more work), scrutinize each task line by line, or have their work Big Brother’d. Fortunately, implementing timekeeping systems can provide that first sigh of relief that notates more accurate timetables, eliminates frustration, and saves you time and a business relationship (or two).
#2 Stifling Growth Because of Limited Capital
Money rules. When it comes to business, taking off isn’t only tied to the revenue streams, but it certainly helps. In other words, “Having access to business credit is the lifeline for a business. It enables you to obtain the capital you need to expand, cover day-to-day expenses, purchase inventory, hire additional staff, and conserve the cash on hand to cover your cost of doing business.” (SBA Blog).
When you’re looking to scale your outgoing expenses, measure capital, and expand revenue streams, it can be an unnecessary headache juggling multiple pools of resources.
If you’re stressed at the challenge, that is, raising capital to cover the cost of expensive office equipment or the business car that drives you to a customer, then having a reliable stream of revenue could be the support that you need.
Your business also benefits from organized records.
If it becomes a chore to manage invoices and see every single purchase tied to your company, you’re due for an upgrade. Fortunately, you no longer have to be in the dark when it comes to your spending. Instead, you can make use of an organized invoicing system that will allow you to take control of your spending, minimize tedious data entry, and limit your stress. Also, be aware of how important business owner insurance is. A business owner insurance policy covers the most common customer lawsuits and business property damage.
#3 Weakening Sales’ Team Morale
Your sales team might not admit this to you, but they could be feeling neglected, underappreciated, and dreading their work. On the other hand, their work could be so overwhelming and intolerable they might be on the verge of leaving.
But before you consider replacing these folks, you can motivate them to exceed their past performance and fully engage with the team. You can improve your sales teams’ performance without splurging on more training by introducing virtual motivations to your team. Sales gamification tools encourage a healthy level of completion among teams and reward their sales achievements.
And if this idea sounds too good to be true, it isn’t. 71% of companies that have implemented this tool have improved sales KPIs from 11% to 50%. Moreover, companies like Microsoft, Zillow, and Box refused to wait forever to reap their rewards.
Virtual gaming platforms have brought life back into the workplace with ‘Head-to-Head’ mashups that operate much like bracket games and enable recognition and rewards moments for sales teams.
The genius factor behind gaming systems for sales teams is how they improve their perception and relationship with their role. Creating more access to a higher role status, better work accommodations, more perks, and company rewards can improve the caliber of their work and reduce stress related to their performance.
#4 Weakening Customer Relationships with Disorganized Processes
The tricky part of running a company is keeping everything in order. Hopefully, this situation doesn’t apply to you, but if you’ve ever had a poor onboarding system with a company and had more back-and-forth than you’d like, it’s probably because of their lack of systems.
If the handbook was in one spot, the workplace practices in another, and your benefits packet yet another, their disorganization could have impacted customer relationships.
When it comes to improving client rapport, your business can start with a streamlined process. Then, with a consistent approach across departments, you can improve the customer experience and highlight a glowing perception of your brand.
If you have no idea where to start, take a peek at other companies’ processes. Check how your competitor runs everything from sales to finance in a pinch. Then, imagine what it would look like if you could streamline the business process without having to compile code.
This and more are possible when you decide upon a structured system. When you improve your process, you can enhance your customer relationships. Start with a streamlined approach to avoid your sales team’s missteps with client information or forgetting customer touchpoints.
#5 Losing Customers When Not Properly Tracking Growth
Convincing people to become return customers is the difference between a one-off purchase and recurring revenue. Unfortunately, developing loyal customers is an elusive activity that doesn’t seem all that predictable or trackable. Measuring Key Performance Indicators (KPIs), however, can predict the customer relationship and help with a gradual increase in your company’s value.
Several factors (too numerous to name here) tie into customer lifetime value but start by checking your Customer Churn Rate, Monthly Recurring Revenue, and Net Promoter Scores.
Your Churn Rate tells you the rate at which customers will stop doing business with you over a specific time. You can calculate churn by taking the number of customers unsubscribed from your service or membership divided by the total number of customers at the beginning of the period and multiplying by 100.
Other KPIs can show accurate predictions of how well your customer base will grow to fuel your company’s growth. Ultimately, getting crystal clear on these figures can save you a lot of money, confusion, and heartache.
If business came easy, then everyone would start their own, right? However, since it comes with a substantial learning curve, it’s essential to learn what to do to save yourself too many headaches.
Your business is your baby, your pride and joy that you go to the end of the earth to protect. But have you considered the actions that are squashing its potential?
Fortunately, there’s no need to stay in the dark any longer with the available resources.
Launching and scaling a business is hard enough. Find the right tools, processes, and systems to make it easier on yourself!