Common marketing mistakes entrepreneurs make

Small business owners make marketing mistakes. However, one of the fastest ways to develop your marketing skills is to learn from your mistakes or those of others, Okechukwu Nnodim writes

As an entrepreneur with a limited budget and a few chances of succeeding in business, one of your goals should include the ability to avoid too much mistakes, experts say. This is because, as a small business owner, you are most probably pulling double-duty in order to tackle multiple job functions at the same time, including sales, marketing, business planning, finances, all of which may not be within your realm of expertise. According to experts in entrepreneurship, the fewer mistakes made in business, the greater your chances of survival. They note that individuals who record series of mistakes, whether in sales, administration, marketing, customer relations or procurement, will run aground their ventures if care is not taken. Small business consultants say one of the fastest ways to develop your skills in a particularly challenging area is to learn from your mistakes or those of others. It is therefore important to understand the basics that are required in business in order not to derail from what is expected from you as an entrepreneur. Marketing should be done with wisdom and should not consume all your funds.

 Seasoned entrepreneurs and consultants say sales and marketing are the engines of entrepreneurship. So, if you are an entrepreneur you must have these skills. A Senior Resource Person of the Lagos Business School and the Managing Director/Chief Executive Officer, Universal Anchor Limited, Mr. Sesan Awonoiki, during an interview with this correspondent, says having marketing skills is not enough, but you have to be an expert in the ability to sell and market your products, especially if they are intangibles. He says, “This is because intangibles are even more difficult, because you are selling concepts and ideas. In this side of the world, mainly in Nigeria and some parts of Africa, there is a little bit challenge in the ability of people to sell concepts. They may be able to sell tangibles or products which the eyes can see, but when it comes to selling an idea or an intangible, may be you are selling financial, insurance or medical services, the challenge arises.” The common mistakes made by entrepreneurs while marketing their business, according to experts are:

Gambling instead of adequate planning

Instead of planning how to market their business, many entrepreneurs prefer betting on big events. Going to events to market one’s products or business is not a bad idea, but you must have an idea of what to expect from the occasion rather than gamble. Experts say the first mistake many entrepreneurs make while marketing their business is to spend all their marketing funds in one place without calculating the odds of success first. They note that attending a trade show, local fair, or even taking the time to attend local business events can be prohibitively expensive. This is because if the event fails to generate the expected associated volume of sales, you may soon have no company to market. It is therefore important for you to be sure you plan, not gamble.

Professionals advise that you always do the math on expected costs and resultant sales, underestimating sales when you plan. You should equip yourself to make the most of the event and put yourself in the customers’ shoes. Why should they stop by your table or chat with you? What will they see or hear? What will you talk to them about? What will they leave with? Why should they give you a business card? Answer those questions and come prepared. According to experts, you can shop around, and understand whether your money could be better spent.

Trying to brand

This is another marketing mistake made in business by owners of small ventures. Experts say branding works when a business has the budget to make it work. They note that this isn’t to say that your company shouldn’t have a brand, identity, or logo. Getting a logo for your business is a great idea, but is it necessary for a young business? You must learn to conserve your resources and make sure you do not waste funds that should be channeled elsewhere to make better returns. According to consultants, the mistake that too many entrepreneurs make when approaching branding is spending their precious resources on trying to get their customers to identify with them. They note that attracting new customers is more about having a strong marketing message that explains why prospective clients should choose your business, and less about creating the perfect logo.

Overspending on marketing

It has been established that most entrepreneurs spend too much on marketing when they are taking out ads, using Internet advertising, or doing any grassroots marketing approach. This is not always necessary, especially if your business is still young. The golden rule of marketing, according to experts, suggests that you should not spend more than seven per cent of what a client is worth to you. For example, if you are an insurance agent who makes N5000 on an average policy you sell, your rule would be to spend N350. Be prudent in your marketing spending, experts say.

Averse to risk taking

Many entrepreneurs shy away from taking calculated risks. Your unwillingness to taking risks in business will mar your venture if care is not taken. Being reluctant to take risks in business is not healthy for you and your venture, experts say. They note that sometimes it is necessary to take a leap of faith and stand behind your product or service. The more you play it safe by looking, sounding, and acting like every other business, the more risky it is to your business since customers will be unable to determine the difference between you and your competition. Be bold and take risks, but make sure they are calculated ones.