Successful entrepreneur Randal Gindi on common mistakes made by business owners
Most business owners struggle in the first few years of starting their business. Between securing funding and finding the right marketing strategy to stay one step ahead of the competition, small businesses and start-ups face a lot of challenges. On top of that, business owners often make mistakes that could cost them their business.
Randal Gindi is a real estate investor from Brooklyn, New York. He has an insatiable hunger to learn every aspect of a business, whether as an owner or an investor. Understanding the retail industry, he invested in a business that ran events for independent retailers to display and sell their products. Gindi has a keen eye for business and an astute insight into market trends. As a brilliant strategist, Randal and his partners sold the business. He had recognized that the internet was emerging as the dominant source for sales in the evolving marketplace. In his opinion, Randal believes that the following common mistakes business owners make could put their business in jeopardy.
One of the first mistakes that start-ups make is to set high goals and expect unrealistic returns on their investments and business ventures. As every successful entrepreneur knows, it takes a lot of hard work, time and perseverance to achieve success in the business world. Financial plans that turn entrepreneurs into billionaires overnight are a myth, says Randal Gindi. Not only that, but setting yourself high and unachievable goals would take away from your credibility and make investors think twice before backing your business plans, he adds.
There’s also an emotional drain that comes from believing too much in business projects that have a little chance of success. So, it’s important that entrepreneurs set concrete business plans with measurable outcomes.
Ignoring the competition
Every industry and market niche is saturated with competing business entities, each seeking to attract more customers and sell more products. That’s just how the free market works. Competition often leads to better service quality and reduced prices. But some business owners seem to operate in a vacuum. They totally forget about their competitors and work under the assumption that their top-notch product or service is the only option for consumers. According to Randal Gindi, that’s a rookie mistake, since not only are you facing tough competition from other business owners in the same niche, but there are other cheaper and sometimes free alternatives to your flagship product.
A successful business owner is the one who keeps a keen eye on the competition and factors in the other alternatives customers have when creating a marketing strategy.
No marketing strategy
Few businesses can survive without marketing. Even big brands have to compete all the time for the limited time and attention of the consumer. So, it might be surprising how some entrepreneurs seem to push marketing down their priority list or even craft their business plans without giving much thought to any form of a marketing strategy. According to Randal Gindi, that’s a recipe for disaster in the business world. Marketing is not just about making your prospective customers familiar with your business, but it also helps you create a focused message that defines your business purpose and goals. In this sense, marketing be a high priority for any start-up.
Lack of planning
If some business owners underestimate the importance of a good marketing strategy, others throw planning out the window altogether. The idea is that they trust their gut and plow ahead, guided by nothing but their intuition and an exaggerated faith in their own talents. The way Randal Gindi sees it, no business idea, no matter how brilliant or unique, can have a chance of success in the real world without solid planning.
A good business plan tells the entrepreneur where to put their resources and how to get their business priorities straight. Absent that, the business owner is just squandering their resources and missing many opportunities to grow and take their business to the next level.
Absence of work-life balance
Many start-up owners believe that the harder they work, the better their chances of success. In some cases, they have no other option but to work and sleep at the office because there’s just so much to do in so little time. But that all comes at a cost. The more stressed the entrepreneur gets, the less productive they become. Too much work without relaxation can backfire.
Randal Gindi recommends a good work-life balance as a way to achieve many goals both on the business and personal fronts. Taking a vacation can do wonders for one’s productivity.
Taking clients for granted
Once the business achieves a respectable degree of success and creates a decent customer base, the business owner directs their marketing efforts to attract new customers. There’s nothing wrong with that since all businesses need to grow. However, this should not come at the cost of the current customers.
It’s never a good idea to take one’s loyal customers for granted. The business should always look out for those clients, send them newsletters, offer them promotions and discounts, and reward them for their loyalty. Otherwise, they could just drift away and move to another brand that values them more and provides better customer service.
Overestimating own skills
Another common mistake that many business owners seem to make is to put too much faith in their own abilities. According to Randal Gindi, many entrepreneurs believe that the best way to get something done is to do it by themselves. That might work anywhere, but that’s no way to run a business, he adds. There’s a reason that accountants handle only accounts, not the company’s marketing strategies. If the business owner sets out to do it all, that business won’t go far.
Many common mistakes that business owners and start-ups make have serious implications on their business. However, with solid planning, a good work-balance life, and the right marketing strategies, entrepreneurs have a good chance of growing their business and staying ahead of the competition.