Both retail and wholesale business are prone to failure, especially during the first few years of operations and business transactions. According to an estimate, almost 20 percent of the new businesses get folded within their first year and almost 40 percent get closed within initial three years. The figures are not mentioned to scare entrepreneurs off but to prepare you to face all these challenges, while running a business. Remember, failure is only the opportunity to begin again and to start working more wisely but it does not mean that you should actively pursue failure. However, when it happens, you must learn a lesson from failure and restart it with more passion and zeal.
Following are few common mistakes with the lessons that you should actually learn.
Picking Every Opportunity
Hitting every random opportunity just to make more profit and developing long-term business plan & profit model are entirely different things. Working on a new opportunity certainly entices every retail entrepreneur and wholesale supplier but make sure that it will not distract you from primary business goals. To achieve long term success, it is vital to set certain boundaries and for this you will have to learn to say “No” to every new and irrelevant opportunity.
Not Focusing on Sales & Customers
Your business might be failing because you are not focusing on increasing sales and increasing your customer base. It is a simple phenomenon to understand, as you will have to just evaluate how much time you have spent on sales in the previous quarter, what steps you have taken to enhance customer base and how much time you have spent on talking with customers to understand their needs. On the basis of these findings, you can evaluate what can you do for your customers, how can you increase total customer value and how much sale you can generate for your business.
No Exit Strategy
Including an exit strategy in your business plan demonstrates that you are a savvy entrepreneur, who has begun with the end in mind. It helps potential investors to understand that they are investing in a business model and not just dumping money for solely following their dreams. Even if you are cent percent sure about the success of your idea, don’t let your passion lead you thinking that nothing can go wrong or that you would not need someone else to run your business. Whatever, the situation is, always begin with the end in mind.
Perhaps it is the biggest mistake for an entrepreneur. Marketing is an essential tactic to be alive and active in market so that people may develop a brand loyalty with your business. Make sure you are more active as compared to your competitors otherwise; they will win business from you. The key to marketing is repetition. Therefore, keep extracting ideas from your business to run a marketing campaign and keep your name in front of your customers as much as possible.
The bottom line to get business success is to stay motivated by breaking the inertia. Remember, starting a business is the easiest task but running a successful business is the hardest things, one can ever do. However, the rewards are far more than the sacrifices and more gratifying than you had ever dreamed of.
Julie Robert is a B2B wholesale trade and B2B marketing expert at Wholesale Pages. She writes frequently on the topics related to UK Wholesalers, Wholesale products and Wholesale distributors. You can follow her on Google+.