The chairman of a famous American company called Dollar General has recently shared some interesting information with the Internet community. This person has an incredible experience in company managing and creating business spheres. Thanks to the rich experience in the global market sphere, Michael studied the image of a novice entrepreneur. He told us about the most common business mistakes.
Why do not young entrepreneurs become successful?
They act alone
It is difficult to create a successful business when you are the only project participant. You should hire at least one administrative assistant, sales specialist or an ordinary employee. Do not have enough money? Provide a high price margin to have resources for hiring additional staff.
Too many advisers
It is always useful to get expert information, especially entrepreneurs who have a nice experience in creating or selling a successful company. However, if you have too many consultants, you can delay it so much that the company will never work. Solution: Gather a solid advisory board that you can use on a regular basis. Solve everyday issues on your own!
Excessive attention to product development
Of course, it is difficult to create a good company without a good product. Nevertheless, entrepreneurs who spend too much time on correcting and changing something can lose market “war”. Any competitor with a stronger sales organization will “defeat” you. Concentrate on marketing and do not waste a lot of money and energy on product development.
No online company platform/system
Often, young managers ignore the importance of sharing information within a company. We are talking about information regarding staff. Michael considers this aspect very important in our time. His company uses a special platform, its name — DGME employee portal. This incredibly useful online platform was created for employees and their needs.
The system allows them to edit information about themselves, their experience, personal data, etc. This allows personnel departments to avoid the problem of late processing of information.
They also choose too small markets
A highly specialized product is very good. However, there is such a thing as a target segment. Your product is not in demand among casual customers — be ready to face the bottom. Solution: choose a wider market segment so that you have a chance to grab your piece of cake.
Enter the market without a distribution partner
It is easier to enter the market when there is a ready-made network of agents, brokers and other third-party resellers. You should prepare a team that is able to sell your product through existing distribution channels. Many large industries work this way (fashion, food, and media). A useful tip: make a list of potential distributors and test them before starting the company.
Attract too much capital
Too big capital can also create some problems. Companies with excessive financial resources grow disproportionately. They have highly paid staff and spend valuable resources on parties, unnecessary promotions at industry shows, image advertising, and other unnecessary things. Then the money runs out and investors lose their patience…
We hope that this article will help you to avoid many problems and failures. Make your business to blossom. Never give up and achieve new goals!