Among young entrepreneurs there is a common misconception that the way to ensure and help the growth of your business is based on the concept “Go big or go home”. Considering all the hard work and sacrifices you’ve had to make to build your company and throwing it away only because you decided to take a risk. Usually “Go big or go home” won’t pan out. The number of instances in which it leads to something fruitful are more rare than the Hope Diamond. So yes, this mentality will eventually lead you on the path to failure. Instead, I’d rather advocate for the “go smart or go broke” approach.
Given today’s business environment, bigger doesn’t always mean better. Focus on working smarter rather than investing more of your time and capital in areas that can do just fine without paying even more attention to them.
Use digital tools to your advantage. Most entrepreneurs are not aware that the digital tools are the main reason why the costs of starting or growing a business have decreased significantly. For example, most entrepreneurs prefer to avoid using the easy steps of starting a business in the online environment. Moreover, entrepreneurs risk too much of their capital and when they eventually fail, they notice that they’re left with nothing, without even having a clue as to why the business failed.
If you have limited time and money to start a business, you can find perfect digital tools on sites such as Elance or Guru, which provide a wide range of freelancers that can help in your business development process at a convenient price. If you need a website or a logo, these sites are the best way to start your search.
While in the old days companies aimed towards focus groups and surveys to test ideas, the strategy was considered price and ineffective at time, because what people say and what they’ll actually do are two different things. Nowadays, business ideas can be tested better before actually providing the product on a larger scale. There are programs such as Google Analytics that do exactly that. Business owners pay special attention to the behavior of customers on their website. This way they can determine what works and what should be improved. This is great considering its way cheaper than focus groups or other marketing research methods and it offers valuable information regarding customer behavior in real time.
Moreover, social media proves to be extremely effective and an “insta-focus group”. If you’re not sure about your business idea, make sure to identify the target groups that could benefit from your product and start connecting with them. You’ll enter real and interesting conversations instead of only reading boring, monosyllabic words on a survey. This tool also proves helpful to assess your competition and what they are doing. In the past this would be the most guarded secret of the company, nowadays this information is free of charge.
Nowadays, marketing has become so much easier than it used to be. The expensive TV ads or print ad campaigns are a thing of the past. If you aren’t doing it already you should try pay-per-click and cost-per-action ads. These prove more cost-effective and help you determine if the campaign was effective or go another route such as social media or content marketing to produce revenue. While it takes time to create the adequate strategy, there are some instances in which you can promote your business without spending too much money.