4 Mistakes That Limit Your Start Up’s Potential For Success1. Pricing Have you really thought out your pricing? Not just that you can cut costs by doing everything yourself and undercut the competition on price. What happens if the industry changes and an incredible new low becomes the standard like in the publishing industry with ebooks? What if your overhead increases or you have to pay out commissions for others to promote or sell for you? 2. Structure Is your business model really scalable? You may have a great business idea, product or service but if you don’t have the right structure which can easily be scaled then your ability to grow and even meet the organic demand that comes in restricted by your capabilities to deliver. 3. Brand Image As we have seen from a number of huge business blunders lately, entering the market on the low end and then trying to put a premium on your service or product doesn’t go down too well with consumers. Just ask Netflix or Bank of America. In contrast building a high quality versus cheap brand from the beginning can offer larger profit margins and more dollars per unit moved meaning less sales are needed to meet your goals. 4. Poor Cash Flow Planning You can’t just project profits, you need to be intimately aware of your cash flow needs and potential. Besides the threat of running dry on cash just before you make it big, you also won’t be able to take advantage of discounts or jump on opportunities as they arise. Leave a Reply |
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