4 mistakes that could bankrupt your new business

4 mistakes that could bankrupt your new business

These days, creating a business that can be a successful, ethical and dynamic is even more difficult. Innovation, changing social preferences and ethical confusion can be a dagger to the heart of your business. Clearly, there are many ways in which you could potentially harm your business unintentionally. However, that’s not an excuse to not give it a crack, especially if you think you have a great new business idea or model. So, if you’re in the process of starting up your own new business or start-up, make sure you remember these four things you should avoid.

Poor search engine optimisation services

Search engine optimisation (SEO) is the process of optimising your online content so it performs well in search engine rankings (think keywords searches). Today, you simply can’t afford to run a business without an online presence. As a bare minimum, you need a website and several social media channels, primarily as a form of customer communication.

Based in Sydney, SEO Shark is a specialist digital marketing company that offers effective SEO services to its clients. Ironically, the founder of SEO Shark, Lucas Bikowski, decided to create SEO Shark in 2004 after experiencing first-hand how poor SEO could make or break a company. Prior to founding SEO Shark, Bikowski worked for an e-commerce business, which capitulated because of terrible SEO results. The company simply couldn’t compete against its more established rivals, like eBay.

Your pricing policy is too basic

Now it is true that some businesses thrive off having a very simple, straightforward pricing policy. However, this is largely predicated on the industry you work in and your range of products/services. If you’re running a consultancy firm, giving your clients plenty of flexibility in terms of packages and prices is crucial. A lot of the time, they’ll push back if you give them a single figure and very limited room to negotiate. Giving them multiple options gives the client the allusion they have more control in the negotiation process.

You ignore structural problems because of temporary success

Running a new business can be insanely busy. You’re concentrating on so many different things, so much so that you tend to miss or choose to ignore the glaring problems with your business model. A lot of the time, this is because your business is doing well; sales are on the up, client management is strong, and costs are plummeting. The problem is things can change, and if you refuse to change expect to be left behind. You should be assessing all your KPIs all the time, regardless of how your business is tracking.

Expanding too quickly

As the revenue starts to roll in and the client numbers skyrocket, many business managers will giddily look to expand, hire and expand. When it comes to the world of business, patience is a much-needed virtue. Don’t hire too early and don’t feel obligated to expand, just because the funding might be there. Maybe hiring a new, full-time accounts manager isn’t the right move – maybe a part-time consultant to assist the current manager is a better option? Either way, don’t feel obligated to spend money and expand – take things slowly.