PHOTO GALLERY. Small businesses are driving innovation and closing critical gaps in virtually every industry. According to Semrush, small businesses also create 1.5 million jobs and account for 64% of all new jobs in the US, according to the portal entrepreneur.
Of course, the purpose of venturing into entrepreneurship differs from one business owner to another. While some are motivated by passion, others are motivated by the desire to leave their jobs in search of the freedom to control their time and create their own path to success.
While the purpose may differ, the goal is the same: Every entrepreneur wants to be successful. Not all will, however: Just over 20% of small businesses don’t make it past the first year, according to the Bureau of Labor Statistics, while nearly two-thirds last two years and regarding half survive five years. .
Following the path of the entrepreneur is similar to venturing out into the wild as you are unsure of what awaits you and what the future holds. But with technology advancing, making the way we do business more flexible than traditional brick-and-mortar paradigms, one thing is for sure: we will continue to see growth in small businesses.
The role of income in the DNA of small businesses
Several factors lead so many companies to bite the dust before they even have a footing, but among the most critical is revenue. This, of course, is at the heart of every company: the fuel that makes all other parts of the operations move.
There are several ways to generate income, including selling products or services, charging fees, and generating revenue. The funds generated allow the payment of expenses such as rent, utilities and salaries. Furthermore, the proceeds can be used to reinvest in the business in the form of new equipment or the hiring of additional employees. It’s also important because it determines profitability: a business that doesn’t generate enough will eventually go out of business.
Here are some key missteps that lead to insufficient income:
1. Not determining objectives and goals
Small businesses can easily fall into the trap of not being clear regarding what their goal is or will be. Without this, it is difficult to formulate strategies that culminate in revenue.
Goallessness is inevitable when you don’t know the purpose of something, and that goes for small business ventures. As long as objectives and goals are not defined, the plans to generate income will ultimately fall apart.
2. Ineffective marketing strategy
Marketing is the center of gravity of almost every company: the door and the window that provide accessibility and visibility to a brand. It anchors everything, as marketing leads to sales, but what happens when marketing isn’t executed effectively?
Small businesses are the most susceptible to this, as they often cannot boast the financial strength of larger operations. They may not even have a website and/or social media handles to drive marketing, and they can’t afford influencers or content marketing services. These factors are powerful enough to significantly hamper revenue.
3. Poor or no online visibility
Any business that does not get visibility has no chance of survival as in this world it is all regarding the survival of the fittest. The more a brand has, the more it is noticed by the target audience, and with the continued impact and influence of social media, there are more than enough options to boost it. This might take the form of text, videos, audio, images, or a combination of any or all of these media.
4. Not focusing on repeat customers
This is a common mistake that many make but most of the time they are unaware of. While it’s certainly attractive to have new customers walking through the door, it’s more important to focus on existing ones. Repeat customers are the engine that drives profitability, because they have built trust in you and are happy to do business with you. They’re also easier to retain, since you don’t need to engage in marketing to convince them or get their attention, like you would with a new customer.
5. Not adopting a modern sales funnel system
As times change, so does customer behavior, and small businesses need to innovatively catch up with trends to meet customer needs. Gone are the days of customers passing through the lines of a sales funnel: With so many platforms like social media, social proof, and testimonials on the internet, potential customers can simply search for a product or service and proceed to purchase. Those who aren’t smart enough to take advantage of spaces like this will miss out.
6. Not properly refining the pricing strategy
Price is a key component in the decision phases of any business, and not knowing how or when to adjust it has the potential to do real damage. Undoubtedly, there will be factors such as demand and supply that will affect prices, but a sudden increase will not go down well with customers, and they may look elsewhere. When it doesn’t fit properly, it might come at a high price.
