Small businesses are exactly that! The idea is to start small while you can still think big. The problem is, some new business owners get overzealous and rather than gradually build their small business, they think big and act big too quickly. The key to success when starting a small business is making wise expenditure decisions, not giving into impulsiveness.
Impulsiveness is a key element in the success and failure of many small business enterprises. Yet, small business guides giving newbie start-ups advice rarely mention it. If you get down to the grassroots, a large majority of small businesses that fail have impulsive behavior, which leads to impulsive expenditure, and is often one reason these firms find themselves in financial difficulty.
You don’t need a guide to tell you that burning through your budget is route one to failure, so what else could be useful? Well, how about this? How many guides tell you that it is psychological impulsive decisions that are a contributing cause of overzealous spending habits that can so easily send a small business under?
We are going to look at some of those impulsive decisions below. However, before we begin, we will not cover points such as price, place, promotion, or product in detail. Although those 4 Ps of marketing are also vitally important to starting a small business, we want to take a more unique approach!
Going overboard on rental property
OK. So right off the bat we can cover the ‘Place’ element of the 4 Ps of marketing here. That is because renting a property for your business is a major factor in your decision-making process. Spend too little to get a place where no one will see you, and you could end up with no walk-in traffic, spend too much for a prime location, and you could end up stuck with huge rental bills.
Take your time when choosing the right location versus rent and walk in traffic. Also, look at how much rental prices increase in the area and how often because this could also affect your business, and rental increases in prime locations rise often.
And always remember, you have online tools that can help you if you choose a place slightly off the beaten track. Incidentally, that leads us to our next point.
Choosing the wrong business name
It is strange how companies with such a simple name like ‘Apple’ become billion-dollar corporations. It is a fruit, it has nothing to do with technology, and its bland.
However, back in 1976 the company was actually called ‘Apple Computers Inc’. And the word Apple is one that sticks in our minds because it’s an everyday item we can all associate with. In the 70s there was also not much competition out there, so perhaps had Apple tried the same today, it may have failed. As time moved forward more inventive names like Red Bull (Power), Gucci (Italian), and Amazon (A forest of products) would certainly beat ‘Apple Computers’ had they all opened in the same era.
Small businesses need to be just as creative these days with their business name, and at the same time make it clear what the business stands for. It also needs to be memorable, not too long (no one wants a mouthful of words), and definitely not too bland.
Luckily, help is out there if you are stuck for ideas. You can read about how to choose a business name with 5 simple tips and also run a few ideas through a business name generator. Generally, the rule of thumb is to generate a business name that is original but spells out the unique selling points with 3 words. It can also highlight your location on the end, but ultimately the main name your business generates should stick within 3 words.
Follow these rules, and you will avoid making the mistake of creating a business name that your target market will not associate with your industry, which causes them to bypass/overlook your company in their search for goods or services.
Overspending on your website
Websites are tricky. If you don’t invest in a smart-looking site, it immediately affects people’s impressions of your business. A badly designed logo, sporadic content, and even worse, a site that is not mobile friendly could just end up with people bouncing off your site immediately.
But then how do you create that special looking site that is going to hook those first-time visitors, while also keeping them coming back? Better yet, how can you create a special website without breaking the bank?
The simple answer is ‘website builders’. They are cost effective, come with hundreds of templates to choose from (many of them industry specific), and they come with an array of useful add-on components such as payment systems, calendar booking systems, virtual reality tours, video, and more.
And the beauty of these sites is that you utilize ‘done for you’ code! You simply create a space on your site and drag and drop. The code is then active. Obviously it is not always as simple as it looks, and you will need the help of a creative web design company to guide you along the way, but the point is, the company will not charge you a hefty fee to design custom codes to perform certain actions on your website!
