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Start-up Advice

Avoid Start-Up Pitfalls

Seven common start-up mistakes and how to avoid them.

Paul Galvão

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Starting a new company is often a challenging and lonely path and there are many ways in which a prospect can fail. In today’s economy, most businesses fail within five years, even when run by highly qualified and experienced individuals. In the fast-paced world of business, entrepreneurs need to learn to adapt in order to ensure their short- and long-term growth and success.

Here are some of the most common drawbacks that entrepreneurs experience, and how you can avoid them when starting a new business venture:

  • Mistake #1: Marketing

Starting a business without knowing your target market and how to communicate with them wastes time and money. Less is always more and if you can’t say what you need to say about your product in one minute, then you don’t know your market or your industry well enough.

Fix: You need to be prepared to sell yourself and your business. State the products/services that are available in a clear and concise manner. You have less than 60 seconds to make an impression whether you experience a chance encounter with an investor or meet with a curious customer.

  • Mistake #2: Competition

Selecting the incorrect business venture where there is already market saturation, high competition and inadequate demand can result in failure to differentiate your offering for competitor products and penetrate the marketplace. Entrepreneurs need to investigate their industry carefully and select a market segment with higher demand than supply.

Fix: A business that is built on your strengths and talents will guarantee a greater chance of success. It is also imperative that you’re managing the day-to-day operations and building and developing your company, keeping abreast of industry trends and developments and being aware of the competition behaviour and how they work.

  • Mistake #3: Free Internet programmes

Internet scams in the form of a ‘free’ business set-up programmes will not make you money. Hard work and dedication is required in order for your business to be successful.

Fix: If you require large sums of capital to launch your company, go back to the drawing board. Scale down expensive plans and simplify the idea until it becomes more manageable.

  •  Mistake #4: Fragmented business opportunities

By starting one business venture, failing after a month and then embarking on the next prospect is how many beginners lose large sums of money and valuable time. Create your own business opportunity and corner your own market.

Fix: Avoid being side-tracked by attempting to juggle various ventures at the same time. This will cause you to spread yourself thin at work and limit both your effectiveness and productivity. If you feel the need to jump into another project, you might want to relook your original concept and work on refining your ideas.

  •  Mistake #5: Quick and easy money

Another pitfall that first-time entrepreneurs can fall into when starting up a business is thinking that money can be generated over a short period of time without putting in long hours and hard work.

Fix: Only make purchases which are necessary and keep all costs in check by maintaining low overheads and managing your cash flow effectively. Your money is the lifeblood of your company and its ultimate survival will depend on your ability to budget effectively.

  • Mistake #6: Procrastinating

Entrepreneurs must not wait too long to launch their product. Procrastination could result in a competitor launching first. Don’t spend months or years waiting for the right time to execute
your plans.

Fix: Develop a strategy and timeline and then focus on achieving the goals and objectives by scheduling tasks on a day-to-day basis so that they are executed by the intended deadline. Once you have launched your enterprise, you will learn to make decisions under pressure and not to repeat mistakes.

  • Mistake #7: Expenditure

Starting out small, but efficient, is the way to go. Hire only the employees you need and consider a home office until your business starts to grow. Forget about elaborate offices, fancy cars and extravagant expense accounts.

Fix: Capital should only be injected into items that will yield a return on investment in the long run, such as the correct equipment and technologies for your business to run efficiently, administrative and professional costs (accounting and legal fees), and sales and marketing costs such as training and networking events.

Setting specific goals

All entrepreneurs have to contend with tough competition and therefore must remain proactive in their efforts to stay ahead and learn new things. In order to avoid failure it is advisable to hire an expert who can guide you through the formative stages of the business and help develop it into a mature and successful operation. Business coaching is one of many highly effective business tools for assisting start-ups, increasing productivity and building and sustaining growth.

In my experience, entrepreneurs who undergo coaching before launching a new business are more likely to set specific and manageable goals, which are structured and formal, than their counterparts who do not seek the necessary advice. Coaches are also equipped to measure and evaluate their accomplishments over a specific period of time.

Paul Galvão is a certified professional business and life coach and successful entrepreneur. He founded Turning Point Coaching in 2005, and during the past eight years, the consultancy has established a credible portfolio of corporate and individual clients. With over 25 years of training and development, consulting and coaching experience, Galvão draws on a wealth of private and public sector expertise. He has an MBA from Oxford Brookes University (UK) and is a member of a number of recognised professional bodies, including Coaches and Mentors of South Africa (COMENSA), the International Association of Coaches (IAC) and the Christian Coaches Network (CCN). For further information, visit www.turningpointcoaching.co.za.

Company Posts

3 Companies With Memorable Slogans, And How To Create Your Own

Three companies that have enjoyed these benefits as a result of creating memorable business slogans are Nike, Carlsberg, and Apple. Let’s look at each one now.

Jeff Broth

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A good slogan serves many valuable roles in business. First, it reinforces recognition of your brand. After hearing it a few times, your consumer instantly thinks of you when hearing it again. If it’s catchy enough, they may even find themselves saying or singing it in their head, reinforcing your brand even more.

Slogans also share a little bit about your company. For instance, if your slogan is funny, it says you have a sense of humor. If it contains your goal or mission, it tells the consumer what is important to you. Some slogans share the problems the company is trying to solve or the consumer its trying to help, making it easier to identify the target market.

Finally, a slogan sets you apart from your competitors. It differentiates you from all of the other companies who offer similar services to you. And if it’s memorable enough, it puts you ahead of them in your consumer’s minds.

Three companies that have enjoyed these benefits as a result of creating memorable business slogans are Nike, Carlsberg, and Apple. Let’s look at each one now.

Company #1: Nike – Just Do It

nike

Though many people use Nike’s ‘Just Do It’ slogan as a reminder that they can do amazing things if they just put their mind to it, its author, Dan Wieden, reports that this line actually has a grim beginning.

In fact, it was an idea he derived from a statement made by Gary Gilmore, a double murderer who, before being executed by a firing squad exclaimed, “Let’s do it!” Still, it has stuck in consumer’s minds and is undoubtedly one of the most memorable slogans of all time.

Related: Registering a Trademark

Company #2: Carlsberg – That Calls for a Carlsberg

Carlsberg

Initially, Carlsberg’s slogan was ‘probably the best beer in the world.’ Many consumers came to know and love this slogan; however, in 2011, the company rebranded and created a new slogan: ‘That Calls for a Carlsberg.” The goal of this new slogan, according to CEO Jorgen Buhl Rasmussen, was to encourage the consumer to do good things and then enjoy a Carlsberg after as a reward for a job well done. Both have stuck in the minds of consumers, albeit with some discrepancy as to which one is most preferred.

Company #3: Apple – Think Different

apple

Apple is a company known for thinking (and creating) outside the lines, so its ‘Think Different’ slogan fits it perfectly. According to Rob Siltanen, creative director and managing partner at the company that helped design this Apple pitch, though there are many accounts of how this slogan was created, its true inventor is Craig Tanimoto. Siltanen says that Tanimoto came up with the idea to use black and white photos of some of the most revolutionary people and events of all time and, atop each one, simply display the words ‘Think Different.’ Catchy, right?

Related: Smart Marketing Ideas For Small Businesses

How to Create Your Own Memorable Slogan

These are just three examples of how creating a memorable slogan can help your company get — and stay — in the minds of your consumer. So, how do you come up with this type of campaign?

One option is to get some of your company’s best talent together and see what slogans you can come up with. Have everyone submit one or two ideas and talk them out. See if any jump out at you and, if not, use them to inspire you to come up with even more possible ideas.

Another alternative is using a slogan generator. This enables you to come up with a simple, memorable slogan using keywords related to your brand. Just go through the list and of results and see which ones stand out. You could even pick your top two or three and let your social media followers vote as to which one you should select.

If you find yourself at a dead end and unable to come up with a memorable slogan, or if you lack the creativity or the time, you can also hire a marketing firm to help. Give them a little insight about your company and see what slogans they create. It may cost you some money to take this route but, as companies like Nike, Carlsberg, and Apple have taught us, a good slogan can really propel your brand.

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Start-up Advice

Dear Family And Friends Of Entrepreneurs…

Young entrepreneurs often struggle to establish their businesses as they are not getting the support they need. Sometimes it is not only the obvious support of financiers and supply change developers which is lacking –but also not having that critical “home-ground support” can negatively affect the success of your venture. How can family and friends support entrepreneurs?

Lusanele Mahlutshana

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Entering the market as a newbie entrepreneur is a brave step, and having your family and friends share in your vision for success is critical.  Once you have convinced them that being an entrepreneur is in fact “a real job” – one that requires a lot more sacrifices and hard work than a salaried worker – you can continue to encourage them to support your journey, to ultimately share in your success.

Get a job

In some communities, being an entrepreneur is not recognised as a profession. Therefore, those who pursue enterprise development are seen as irresponsible or lazy as it is not regarded as ‘real’ employment. Societal pressure to attain certain material possessions thus prevents them from pursuing their true passion.

This kind of resistance discourages a lot of entrepreneurs, making their pursuit for success even more difficult.

Related: How To Deal With Unsupportive Friends And Family

Finding out who your real friends are

Financial support is the most obvious support needed by entrepreneurs due to a lack of capital and start-up funding, as well as irregular payments and long periods of being cashless due to procurement holdups and fluctuation in the market for your product or service. Not everyone will stick with you in these times – and that’s OK. You may end up finding out who your real friends are, and these are the people who will give you emotional and social support to keep you focused and motivated.

“I know a guy….”

Another issue is friends and family looking for discounted prices as they know the owner. This means that they don’t see the value of the product or service, nor do they respect the owner. By asking for products and services for free, or at a reduced price, they end up taking advantage of their relationship with the entrepreneur and do not financially support his/her the business.

Related: How To Immigrate With Your Family By Starting A Business In The UK

So, if you have friends or family who are business owners, set an example by supporting them in the following ways:

  • Be willing to pay the full price of the product or service offered.
  • Be kind when giving negative feedback – make sure it is constructive.
  • Compliment them on good products or service. Share positive reviews on your social media pages.
  • Share and promote their business among other people.
  • Be patient and willing to help them establish their businesses.

Be prepared to listen to their dreams, hopes and frustrations. Sometimes, they just need an ear to vent about a bad day. Support them with a word of encouragement to keep going.

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Start-up Advice

Why Embrace The Struggle?

Entrepreneurial success hinges on your ability to approach challenges with the right mindset.

Gil Sperling

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Self-help and business coaching advice is littered with platitudes, which makes it difficult for entrepreneurs to know what they should take to heart. However, one universal truism that most successful entrepreneurs attribute to their success is their willingness and ability to endure the struggle.

It’s a lesson I learnt first-hand when building our ad-tech and Facebook Marketing Partner business, Popimedia. One of our sternest tests came when we moved into new premises and took on more staff to accommodate our exponential growth. Then, amid new and significant financial commitments, some of our pipeline never materialised.

It was at this time that my son was born, and our family had just moved into a new house. To preserve the business, we were forced into retrenchments and directors didn’t take a salary for a while. And, with a lower head count it became difficult to deliver on client deadlines. Needless to say, my personal and professional level of discomfort was at an all-time high.

We reviewed our operations and streamlined where we could. More importantly, though, the experience taught us a number of invaluable lessons.

Lesson #1: Reframe your context

Our leadership approach, our business mindset and our attitude needed to be drastically reframed.

There is a quote that has always stuck with me, which is: “The antithesis of comfort is struggle.”

Related: 6 Of The Most Profitable Small Businesses In South Africa

I believe a person is moulded by the way they deal with struggle. That’s why I’ve always been inclined to welcome a proverbial punch to the face, and use as a mantra the phrase, “comfortable being uncomfortable”.

Being “uncomfortable” forced Popimedia into rapid innovation – and it was this innovation that led to a sea-change in the business. We learned how to scale, how to improve service levels, how to do what we do better, faster, more efficiently.

As a result, and without increasing our staff complement, our year-on-year growth has topped 100%. What was, at the time, the business’s greatest challenge became its greatest ally, and our biggest lesson.

Lesson #2: Fail fast, and learn from it

Obviously, this approach is not about making life difficult for the sake of personal and professional growth. It’s about understanding what is: expecting it to be difficult and taking a constructive approach towards failure and struggle.

There is one guarantee in business: you will experience failures, and you will struggle.

Central to this is your ability to recognise your failures for what they are, and quickly. This allows for a rejigging of processes, attitudes, operations, and sometimes even objectives.

My personal attitude to failure was reframed by simple sales stats. I came to understand that rejection was inevitable – but when it does happen, it brings with it opportunities. I always ask: “Why don’t you want my product? How is it not meeting your needs?” This way, “failure” is transformed into an opportunity to better understand the market and my clients.

This feedback loop has proved crucial, and allowed us to become what we are.

As an entrepreneur, the pressure never ends and you’ll never ‘arrive’. At Popimedia, we’ve come to embrace every opportunity that takes us out of our comfort zone. Working through failure is the foundation on which the entrepreneurial spirit is forged. It is the willingness to try again following a rejection, or to keep grafting knowing that there’s no guarantee of a pay cheque at the end of the month.

And doing so with the ‘chutzpah’ – the sheer audacity – to endure the hardship through mental toughness and a passion for what you do, becomes your greatest asset, because when you get comfortable, you become complacent… and complacency will work you into irrelevance.

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