I’m wrapping up my new year posts about businesses and the things that mothers (and everyone!) do that potentially harm their companies from the start.
I’ve talked a little about making changes right after opening the doors in my last post when I addressed being too quick to change your prices. I’ve seen this time and again, and had a great post/comment from a reader who stated that slashing prices from the start can shout out desparation. I completely agree. In addition, it can also shout out that you have not done your homework in your area of business. If you spend time researching the business you plan to start and the competition, along with the market in that business area, you should open up those doors prepared and knowing what the customers will pay.
Making too many changes from the very beginning is bound to doom your company.
Let me give you a scenario. I’m pulling out true examples because I believe it is so important for those starting a comany to understand how critical it is that you walk in to the company having thoroughly researched what you are about to do.
I recently consulted with a woman who was interested in starting a company that was similar to some others in her area. She had one thing that she felt really stood out from the other companies. Of course, I spoke about the importance of researching the other companies, of looking at their prices, of seeing how they ran their companies and how hers would compare, both the similarities and the differences.
I didn’t hear from her for a while and then received a call a few months later. She had jumped into the business she was considering and was failing to find customers. I asked a variety of questions to help pinpoint the problems, and she told me that in the get-go she did not do the research and instead thought up the idea, got her business license, and basically opened the doors with only the ‘idea’ of what she wanted firmly planted in her brain.
Of course, the idea was flawed because she hadn’t done research. Once the (virtual) doors opened she realized that she had made a slew of mistakes: pricing too high, not offering certain features that other companies offered, promising a few things that could not be delivered and failing to follow through on other things. She also did not have enough money saved up to do what she wanted to do.
She began making changes immediately, to prices, to promises, to the product, to her services. Within the first month her company was a totally different company than it had been when she opened!
Not only did these changes show that she had not done her research (and this isn’t apparent only to me but was to her potential clients as well), but those changes resulted in a huge waste of money. She spent nearly double what she would have on her marketing campaign alone because of the changes she had to make.