Business Ideas to Take That Causes to FAIL. (Part- 2)
Hey, everybody. So today we will talk about the 10 most common mistakes that I see new entrepreneurs or want to be entrepreneurs make that cause their businesses to fail. And this is across all industries and not just online businesses.
Now we’ve got a lot to cover, so let’s just jump straight into it.
06. They cut corners in the wrong places with their businesses:
So, I recently received this comment from a subscriber who asked for feedback for their new business ideas venture, an online store that sources products with drop shipping. In it, he said that he watched this video, a 15 point checklist of mistakes new online store owners make.
He said he watched it and made none of these. And so I decided, all right, let’s see if he has followed the 15-point checklist. And would you believe that John had not followed my 15-point checklist at all? Shocking, I know.
Coming in at number 10 on my list was this: create unique product descriptions that sell the benefits of the products and not just the features. Well, as you can see, this is one area that John cut corners in to save time. But this was a big mistake.
You are choosing to give up fancy dinners that take an hour to cook for simple, healthy food that takes five minutes of prep? Good time saves. Is it not taking the time to make a well-written product description? Bad, terrible! As an entrepreneur, your goal is to make money to do two things well.
One is marketing. Two is sales. For an online store, your product page is your pitch to the customer. If I said to you, “Hey, I’ve got this back brace for sale,” would you buy it?
No, not. It’s my job to explain to you why buy it, how it will help you, and convince you you need it. So yes, you need to look for opportunities to cut corners because we all have limited time, but always prioritize your sales and your marketing.
07. They try to compete on price:
Let me say this now. No matter your business ideas, no matter your industry, price competition is terrible. Everyone loses. So what is price competition? It’s a price war when you try to compete with others in your industry on price. And guess what? You don’t have to do that.
Navin, just because someone is selling a T-shirt on eBay for $10 doesn’t mean that you have to sell it for $10 too. Case in point. When I was running my video game store when I was just 16 years old, one of my biggest sellers were Pokemon games for the Nintendo DS and the Game Boy Advance.
One way I’d get customers in is I would resist some of my games on this website here, Trade Me, which is New Zealand’s version of eBay. No idea what people list this for sale for today, but back in my day, people were selling this for $20.
Now all Pokemon games, even slightly less popular sports like this one, are still all mega-popular. So there were always a lot of listings, but you know what? I’d list my copies of Pokemon Emerald for $40. Trade Me customers would see five listings side by side for the same game.
They priced four listings at $20 each and one listing, mine, was $40, and guess whose game sold the fastest? Mine did. Mine sold the most rapid because I differentiated myself by having a fantastic product listing. I had an awesome photo. I had a tremendous product description.
I had an external website. When customers were buying from me, they weren’t just buying a game; they were buying trust. So Navin, stop looking at your competitors who are selling items and services for lower prices and think that you need to price-match them.
Think about other ways to differentiate yourself instead.
08. They underestimate their customers’ intelligence:
I remember receiving a comment from one of my subscribers, Boss tech. He was an entrepreneur who had started a new business ideas venture. He had set up an online store selling watches that he was importing from China.
Now, on the surface, it looked like a fancy watch store, what with that picture of the businessman on the front page in a suit wearing a beautiful watch and all. There was just one problem with that though, these prices. They look pretty cheap for excellent watches, don’t they?
They certainly do, and that’s because BossTech wasn’t selling excellent watches. He was reselling cheap fake-luxury watches from AliExpress. And yet here was BossTech trying to give his store this luxury, professional aesthetic. But you know what? It didn’t work, because customers aren’t stupid.
And, you know, perhaps BossTech wasn’t trying to pretend that he was selling fancy watches for low prices, but it indeed came off that way. Remember, your customers are smart. Don’t underestimate their intelligence.
09. They try to do everything themselves:
You know, something I find almost ironic is that while John was cutting corners in his store and saving time by not writing product descriptions, chances are he probably cleans his house, which is something that you can easily outsource to someone else.
A while back, I had someone comment that they noticed that there had been a significant shift in how much money I’m making these days. What changed? Well, as I said to them in a reply that could have probably used a spellchecker, in the past few years.
I’ve placed more emphasis on doing something I’m genuinely bad at, hiring people. And you know what? It’s massively paid off. By hiring people to help me complete tasks, I’m able to save time, which I can then use to expand and grow my businesses.
Of course, most people are not willing to do that. Most people are obsessed with preserving their money rather than their time, which leads me on to something vital.
10. They are afraid to invest and lose money:
So I recently went over to my parents’ house for dinner, and I had a great conversation with my father that I shared on my Instagram post that explained why I’m willing to spend so much on business ideas class flights. And by the way, if you want to follow me, my handle is @sarahchrispy.
I was telling my dad that I hate comments like Kyan’s, the pug T-shirt guy, lamenting spending $200 and not making that money back immediately and giving up. I said to him, “I wish people would realize “that seeing instant returns on their money “isn’t realistic.” But my dad surprised me.
“Sarah,” he said, “I don’t think you’re very fair. “People work hard for their money. “They spend many, many hours each day working jobs “that they don’t want to do to earn it. “That money is precious to them. “Of course they’re afraid to lose it.”
And I paused, and I was like, “Wow, Dad. You made a pretty good point there.” And so I thought, why am I so surprised at this hesitant reaction from new entrepreneurs who don’t want to spend and invest money? And it was then that I remembered.
I used to work in a 9-to-5, more like a 9-to-6 job too. On the side, after, and sometimes during work. I would work on growing my new video game hacking store and business ideas. During this time, I spent thousands of dollars on purchasing products to sell and advertising and traffic campaigns that turned out to be duds.
Now, of course, it was a significant investment. I learned my niche inside-out, and I became great at driving traffic and sales. But getting there was a sacrifice. My job only paid me an average salary. It wasn’t like I had lots of money to blow. You may get more ideas on Google.
During that time, I never counted the dollars I lost as Kyan did. Losing money to make mistakes and learn lessons never bothered me at all. What makes me different from Kyan? And then it hit me. Most people are obsessed with money. I’m obsessed with time.