Don’t Start a Small Business!
Is entrepreneurship right for you? This guide will help you decide.
These days, everyone is starting a business. In fact, as at 2017 in Nigeria, there were over 41 million small and medium scale businesses on record and this number was forecast to continuously increase between 2024 and 2029 by over 28%.
In Ghana, it’s not so different. Small and Medium-sized Enterprises (SMEs) play a significant role in the economy. In 2023, over 90 percent of business enterprises in the country were SMEs.
These numbers seem staggering, right? So why does anyone start a business? Why wade into waters that seem shark-infested?
The truth is, no matter what I say, if you’re reading this article, you’re probably strongly considering starting a business, and that’s fantastic! But to make sure you’re not diving head-first into a pool of mistakes, I’ll be showing you what NOT to do, in order to make your business a success.
Let’s dive in!
1. Don't Skip the Market Research
Jumping into a business idea without understanding your target audience and the market is like building a house on sand.You might have a brilliant product idea, but if no one wants to buy it, you're in trouble.
Take the time to think. What do I want to sell? Who is likely to buy this product? Research your competitors; find out what they’re already doing and how to improve on it, or at the very least, be good enough to REALLY compete. This will save you a lot of time and money in the long run.
2. Don't Neglect Your Brand Identity
Your brand is more than just a logo and a name, it's the personality of your business. So don’t go paying someone to create a logo and brand identity before figuring out what that is.
Your brand identity shows in how your business communicates and how it presents itself. For instance, say I want to build a feminine hygiene brand targeted at teenagers and young adults, I might want to sound young and fun in my communication. I’d also want to give off that same whimsical vibe on my social media and with my product packaging. This means brighter colours, slang words, quirky music in the background of my videos, and so on.
Now it’s your turn. Who is your brand and how does it want to be perceived? When you know the answer to these questions, it will help you stand out from the crowd and build a loyal customer base.
3. Don't Underestimate the Importance of Quality
In the age of online reviews and social media, quality matters more than ever. Don't cut corners when it comes to the quality of your products. Even if you're just starting out, prioritize quality over quantity.
There are fashion brands that mostly do limited edition drops because of how long it takes to create the clothes, and the search for a way to reduce waste and prioritize quality.
Always think about this for your brand. What do you need to do to ensure that your customers are getting top-quality products at all times? Happy customers are your best marketing tool.
4. Don't Ignore Your Online Presence
In today’s digital age, having an online presence is non-negotiable. Don’t just rely on physical sales. In fact, you may not even need to start out with a physical store. Build a user-friendly website or online store (Catlog can help with this), create engaging social media content, and you can even try email marketing to reach your target audience. You need to be where your customers are.
Knowing your customer base will help you figure out which social media platforms will work the best, and streamline your focus, especially since you’re just starting out.
5. Don't Forget About Customer Service
Exceptional customer service can make or break your business. Don't ignore customer inquiries or complaints. Respond promptly and professionally, and go the extra mile to ensure customer satisfaction. Remember, a happy customer is a repeat customer.
6. Don't Forget to Track Your Finances
Many new business owners focus solely on sales and forget to track their expenses. This can lead to financial trouble down the line. Keep accurate records of your income and expenses, and create a budget to ensure you're staying on track.
7. Don't Be Afraid to Ask for Help
Starting a business can be overwhelming, but you don't have to do it alone. Don't be afraid to ask for help from mentors, industry experts, or other entrepreneurs. Networking and building relationships can provide valuable support and guidance.
Starting a physical products business can be a scary move, but avoiding these pitfalls will set you on the right path.
If you're ready to take the leap and need an easy way to build your online store, Catlog simplifies the process. Click here to get started!
