Possessing an entrepreneurial spirit is not enough. Owning an impressive capital and a couple of business skills aren’t either. It’s easy for you to waste your passion, time, and finances on a company that isn’t truly compatible with you. In fact, this is the pitfall that most entrepreneurs fall into that end their dreams. They simply can’t identify their niche and narrow it down to the right business opportunity for them.
The hot market trends will give you an idea, but a lot of newcomers focus too much on what suits consumers. They don’t give much thought about what suits them, and when you engage in a business that you can’t grow with, you jeopardize the longevity of your venture. The key is to make a balanced evaluation of today’s consumer demands and avoid these five common mistakes that will only pull you farther from the success you deserve.
You Don’t Really Care About It
Again, there’s nothing wrong with riding the trend. You’ll only get in trouble when you dive into something that you don’t particularly care about. Since home improvements are currently “hot” right now, you may have considered jobs that are feasible for you and your business partners. With lawn care startup costs being affordable and the market big enough in your immediate vicinity, you believe it’s the one for you. And it could be, but not if you don’t really care about lawns, landscaping, and gardening.
There’s a reason why many entrepreneurs believe passion drives business. Yes, you can educate yourself and create amazing advertisements. Unless your core business sincerely matters to you, however, you won’t be able to capture the heart of your target market. Authenticity matters to consumers, and no well-placed ad or strategic marketing campaign can cover up the fact that you don’t think highly of the value you provide.
You Went for the Hype and the Fad, Not the Trend
It’s crucial for entrepreneurs to understand early on the difference between “hypes,” “fads,” and “trends.” While they’re largely similar, trends have a longer life span that’s driven by a considerable shift in consumer behavior. A fad and a hype can be signs of a burgeoning trend, but if you’re not careful, you might jump on one that’s just a temporary craze.
Fads are fueled by a certain demographic’s enthusiasm over an idea and the emotions they carry. Once the feeling that it’s “cool” has worn off, the fad goes away and a new one replaces it. On the other hand, a hype is something borne out of the efforts of media and advertisers to promote something. They make a product or a service seem more special than it actually is so that people become hooked to it. Knowing when to label a consumer behavior as either of the three will save you from a business disaster.
You Pursued Something Outside Your Budget
Financial mismanagement is one mistake you have to avoid, especially when you’re just launching your business. As a rule of thumb, any business idea that exceeds your capital is a bad idea. Don’t get yourself indebted to pull it off. If you really believe that this is the right business venture for you, put it on hold until you can meet the capital it demands. In no way should you compromise your personal finances for it. Study how long it will take for you to enjoy a return on your investment and whether it’s a feasible endeavor. Think of ways to start small, either by launching yourself as an online business or a home business. Otherwise, it’s not worth risking your credit score and financial stability.
You Haven’t Studied the Industry
Let’s say you’re sure that your business idea is based on a trend, not a fad. Have you taken the time to study how well this trend is currently performing? What are the experts’ projections and how big has the demand been in the past couple of months and years? Take into account the number of competitors you have on a global and local scale. There are big foreign brands that could be dominating even in your country, and that might make it difficult to attract the same consumers. Still, if you look at other trends and use them to your advantage, you might be able to package your product or service well enough to appeal to local buyers.
Get to Know the “Right One”
Deciding on the specific business you’ll enter shouldn’t be something done in haste. Take the time to educate yourself to avoid the aforementioned pitfalls. The clearer your standards are for selecting a business, the better your chances of pursuing the right one for you.