According to a recent study, 60% of new businesses fail in the first three years. And, when you consider the level of financial investment and effort that goes into launching a business – the premature closing of a company can be devastating for all involved.
In some cases, the factors that lead to closure are beyond our control – which is why the number of businesses closing their doors spiked during the COVID-19 pandemic. However, there are certain steps you can take that will enable you to protect your brand moving forward.
Often, the easiest way to provide your brand with some extra protection is to avoid falling into common traps and pitfalls that could limit your success. With that in mind, here are three business mistakes you want to avoid if you want to give your brand some serious longevity.
Falling behind on trends.
Many business failures can be attributed to a failure to remain relevant and up-to-date in an ever-changing market. When your competitors are constantly providing their customers with the next best thing – be that new products/services, or technological innovations – it’s easy to see why even the most loyal of your clients may jump ship. As such, you should focus on staying up-to-date on trends as much as possible.
However, this extends far beyond simply launching new products or using the right audio for your company’s TikTok Video – you must also stay up to date in other areas of your business, such as managing your finances. For example, as digital currencies are becoming more and more popular, it may be worthwhile to work with crypto friendly banks so that you can accept cryptocurrencies.
Failing to set targets.
The key to running a successful business venture often lies in the plans that are put in place to support its growth and expansion. While not all plans come to fruition, and you must be willing to adapt and “go off script” when necessary, it’s crucial that you set yourself (and your business) regular targets. In failing to set targets, “your company lacks the focus needed to achieve corporate goals and develop plans that will move the company forward”. Goal-setting also motivates your workforce, leading to heightened productivity.
Covering up mistakes instead of learning from them.
While most of the time, your business will be running smoothly – you cannot expect to avoid mistakes altogether. In fact, how you respond to the mistake is often more impactful than the mistake itself. When you brush mistakes under the rug, you’re opening the door for similar mistakes to occur in the future as you are not learning from them or making necessary changes to combat them. It also showcases a lack of accountability that will drive away customers. However, when you treat the mistake as a learning opportunity, you are providing yourself with the chance to grow. If the mistake led to customer complaints, this can also provide you with a way to mend that relationship so you can retain their custom moving forward.