When I established my first business, I was over the moon. At long last, I was going to be my own boss! I felt that the path to financial freedom was clearer than ever; little did I know what the future had in store for me. After about two months, I realized my gross profit wasn’t that much. Besides, most of my previous clients weren’t returning, and I couldn’t pay my bills on time.
Eventually, I failed, and I had to close up shop. I was devastated. I couldn’t imagine going through the job hunting process again. So I decided to try self-employment once more. One of my friends, whose business was thriving, told me that it was pointless to start another enterprise without comprehending what caused the first one’s failure.
After my research, I discovered the reasons below led to the collapse of my business.
I thought that capital and clients were the most crucial parts of a business. As it turned out, planning comes first. A great business plan comprises both short-term and long-term objectives, which must be realistic. It outlines the steps one must take to achieve those goals within the set timeframe. Additionally, the perfect business plan comes with a budget that one must stick to. If I knew this before, my business might have had a chance to succeed.
My first enterprise taught me that managing a business can be tricky, especially for a first-time owner. I wasn’t listening to most of my customers’ suggestions. It prevented me from meeting their diverse needs. I did my accounting after a week instead of daily, and it negatively affected my finances. I was often lending people my products and services, but I wasn’t keen on collecting those debts. These are among the many management issues that crippled my small business, and I wish I did things differently.
My business did not make it because I wasn’t using practical marketing strategies. For starters, I had not created any social media pages for my enterprise. Again, I never sent my customers, or prospective ones, any personalized texts to enlighten them about my products. This meant that they knew little about me; no wonder they never came back.
I should have known that effective marketing was important for my business. It would have helped me gain my customers’ trust, improve my brand awareness, and bring about the business success I longed for. If I had indeed planned out marketing strategies properly focused on my business, then things might have better worked out for me. I could have even taken the help of marketing automation tools that so many platforms provide (such as LeadJig for financial marketing) that would do the necessary job without me having to worry about it too much!
Establishing my first business came with a lot of thrill. I was high on being my own boss, and I must have forgotten about the importance of professionalism. Sometimes, I started working as late as 11 am. I even entertained my friends when they came over, and we’d spend hours ‘catching-up’. Other times, these buddies got ‘free services’ for being in my inner circle. Eventually, I couldn’t take care of all my business responsibilities, making it difficult for my startup to survive.
Were it not for the reasons I’ve discussed above, my first enterprise could have blossomed. I would have pleased my clients and gotten more, made huge profits, and even expanded that business. I have no regrets, though. The mistakes I made taught me the importance of developing a comprehensive business plan to facilitate success. I now understand why efficient marketing strategies and management skills are handy when running a business, no matter how small it is. Additionally, I value my professionalism when I’m working, and I don’t tolerate any distractions.
Knowing all these things has enabled me to establish several other businesses and make insane profits. Also, most of my clients enjoy my services, and they always return.