When you are starting out in a business, particular risks pose the same sort of problems you never see coming. Issues in your staff, marketing strategies, and the speed of the company’s development are among the things you might not have considered much especially if you’re too busy working for something else. So what are the warning signs you should watch out for as an entrepreneur?
1. Overpromising and Underdelivering Products
It is understandable how tempting it is to launch a new product out of the door. But you might end up overpromising and underdelivering the product especially a new brand since you need to ensure to the consumers the solidity of your product before launching it to the public.
Unlike in the Nam Seng Cargo, a logistic and stevedoring company based in Singapore, they ensure that their refrigerated truck rental ensures the transport of your products such as perishable goods are in good condition and solid once it arrives from location to another location.
2. Marketing on Too Many Platforms
One of the major warning signs for entrepreneurs is marketing on too many platforms such as Facebook Ads, SEO (Search Engine Optimization), and Instagram influencers. All of these exhausted your efforts and won’t give a solid result since there is no focus.
Nam Seng Cargo also noticed this kind of problem. So what they did years ago is that they updated and focused only on one platform, which is SEO, to keep track of the metrics and ROI (Return On Investment). This also allows them to become an expert in one platform instead of plainly amateur at many platforms.
3. Building Before You Sell Products
It is highly a predicament to do building products before you sell them to the public. Nam Seng Cargo was once tempted to build their specialized refrigerated trucks since it is very challenging with a short-term satisfaction. But they realized the importance of the people’s needs and wants before building the wrong products.
4. Investing in Unintuitive, Labor-Intensive Software
Some businesses started out using an expensive, on-premise ERP (Enterprise Resource Planning) to get an edge from others. Months of the time were invested, and more than $100,000 is required to get the equipment. The solution won’t also go on live without licensing and consulting time.
This made the software unintuitive and labor-intensive since around five workers are needed to do this job that was previously done by two workers only. Good enough Nam Seng Cargo began and adopted a better CRM (Customer Relationship Management) and ERP ensuring no laborious workers.
As an entrepreneur, you have the big responsibility to make sure that your business is working well. Raising capital is not only the necessity in order to build a business but also your customer’s problems and your solutions to their problems are all that really matter. Once you figure out this part, funding will become essential.