The holiday season has begun, and everyone is looking forward to making a fresh start with the New Year. The excitement of entrepreneurs is evident as they have managed to sail through the tumultuous ride of 2020. The COVID-19 pandemic proved to be one of the worst upheavals for the commercial sector in Australia. The demand for most products dipped, which diminished the cash flow for a variety of entities. It has perhaps been a devastating year for impacted businesses.
Therefore, those who managed to pull themselves out of the raging storm have a lot to celebrate and deliberate. Things have come back on track with a reduced number of active cases in the country. However, entrepreneurs have to be extra cautious and not take things for granted. If you own a venture or have been planning to purchase a business for sale in Australia, then you must know what should not be on your work checklist. Here is a list of the ten things that should be avoided at all costs by an entrepreneur in 2021.
1. Staying Rigid with Policies
Your old business processes may have proven fruitful over the years, but it does not mean that you will stick to them for an eternity. You need to be vigilant of the changing consumer behaviour and adapt accordingly. Companies which do not respond to the changing markets are often lost in the oblivion. Similar to Nokia’s inability to deal with the technological advancements brought about by the iPhone.
After the pandemic, it is evident that the consumers are spending less and prefer to buy online rather than splurging in shopping centres. Thus, if you have been paying attention to the current trends, then you must offer online services along with the physical business. Also, you should start marketing locally and be ready to provide a click and collect services to the buyers.
2. Squandering Your Funds
One thing that the pandemic has taught everyone is to save money. You cannot go wrong with this, or you will be at the losing end. As an entrepreneur, you must focus on using your capital responsibly. Every expense should be calculated in advance to find the most cost-effective solution. Involve the bookkeeper in the significant investment-based decisions to make an informed choice and manage your finances. The professionals in your financial team will offer advice on putting money in high returns assets and will not allow you to waste it on redundant pursuits.
3. Undervaluing Your Offerings
Entrepreneurs often make the mistake of undervaluing their products to attract customers. However, it is the worst way to start 2021. You should not lower the price too much thinking that the consumers are not willing to spend. It can affect your brand image and change the perception of the company in the minds of the target audience. The pricing should be based on the cost of the product and the price range of similar competitive products. You can always rely on offering discounts for the holiday season if you are planning to increase sales.
4. Not Listening to Customers
If you faced losses in 2020, it does not mean that you should stop innovating or asking for feedback. A company ceases to exist if it does not update itself. You can avoid it by introducing a new product line that is in demand currently. For instance, you can start selling essentials in addition to your products and services. Your loyal customers will be happy to shop for these products from your brand. The key is to keep your business strategy customer focussed and never lose sight of the goals. Understanding the needs of the customers should be your top priority.
5. Reducing Marketing Budget
While cost-cutting is a good thing when you are trying to gain back your market share, you should not shrink back your marketing budget. It helps you to send your messages directly to your target audience and persuade them to make a purchase. From local marketing to digital marketing, the promotional plan is highly significant in getting the desired visibility and sales. You can come up with pathbreaking ideas that require less capital but have a mass appeal. Social media marketing can help in this regard. As many as 71% of Australians are on the social network, and thus it is the best place to start advertising.
6. Not Improving Efficiency
It may seem like too much to ask when you have emerged out of a financial crisis, but you need to pay attention to being efficient. It can be easily achieved by working smarter rather than working harder. The first step should be to automate processes that are eating up a lot of time and effort. It will help you to work with a smaller number of people which will reduce costs. Also, you must find the best people instead of the wrong people who can make matters worse. You should wait until you find the perfect fit for your requirement. Hire specialised and talented people who can offer valuable inputs for the growth of the business.
7. Avoiding Risk
Taking calculated risks is necessary for a business to keep progressing, or it will stagnate. If you keep sitting on an idea, then someone else will launch it in the market and gain the pioneer advantage. For instance, Kodakhad invented the digital camera way back in 1975 but refused to utilise the technology. It did not want to risk its highly popular film-based photography and brushed the idea under the carpet. Years later, the same technology was utilised by competitors to run the company out of business. You will never know the result until you give it a try. So do not avoid risks.
8. Ignoring Community Participation
The current world is a deeply connected system with strong roots in its community. The consumers are more aware of their surroundings, environment, city, people, and organisations in the local area. They want businesses to be socially responsible, eco-friendly, and compassionate. Thus, you must be an active participant in your geographical area of operation. You should organise charity events, attend local festivals, and business meets and workshops. You can even sponsor the local sports team to become more visible and popular.
9. Disregarding Safety Measures
Although the worst seems to be over for most Australian cities, the virus has not been eliminated completely, and the vaccination has not started yet. Thus, you still need to take all the workplace safety precautions to ensure optimum health and hygiene. Maintain social distancing and wash hands regularly with soap to avoid contracting any virus. If you let your guard down and neglect the safety standards, then it can all go downhill for you. The employees, clients, and management can get affected and will have to face the consequences. Thus, stay alert and careful at all times until the vaccination drive is completed.
10. Not Accepting Mistakes
An entrepreneur is a leader and has to set an example in front of the employees. However, this does not mean that he should act arrogant and unconcerned about the problems of the employees. He should be ready to own all the blunders and learn from them. He must share his experiences with all the team members to help them realise the right way of doing things. The entrepreneur should not be ashamed of the mistakes and must focus on improving the procedures after every failure.
The New Year is going to be full of new resolutions, surprises, and success stories. So, if you are planning to invest in a business for sale in Australia, then make sure that you resolve to avoid the things mentioned above to excel in 2021.