Top 3 Marketing Mistakes that Small Businesses Are Making

10-01-2019

It’s common to make these marketing or advertising mistakes nowadays especially when you have not been a successful serial entrepreneur.

Our world and technology are changing so fast that new ideas or ways of doing things are created. Here are some top mistakes to avoid:

1. Avoiding New Technology

If you have a team who works remotely, what’s the best way to communicate with each other? Tools like Slack can help with team communications and it also have a mobile app in addition to desktop and web platform. There is a free version which allows you to keep your chat history for up most recent 10k messages. This way you can always keep your team communication effective instead of spamming email inboxes.

2. Not Doing Marketing Because of Budget

This is one of the biggest mistakes. If you want customers to come to you, they need to know about your existence in the first place. If you have a dental clinic or a massage therapist, do you expect customers just to happen to pass by and walk in? All the fixed cost like rent or salary will incurr whether or not you have a customer, so by not investing in advertising, you are doing yourself a disfavor. You might as well close your business and not waste money on it. If you are a new business, you are unsure of how much to spend. The rule of thumb is to start with 10% of your expected revenue for next year. For example, if you expect to make £100K next year, then you would invest £10K in marketing and advertising this year so you can actually reach your £100k goal.

3. Stopped Marketing Because You Already have Customers

Do you ever see Coca Cola stops advertising? Or BMW stopped putting up fancy commercials? You might argue they are in the business of building a brand, not bringing in customers because customers already know about them. This is completely wrong.

The playing field is competitive. When you stopped advertising but your competitors are still doing it, they will take all the potential customers away from you and as their market share grows bigger and makes more money, they put more money into advertisements to get more customers and eventually drives you out of business.

The correct way to sustain growth is to increase your advertising budget to a point where you can’t scale your operation at the same pace anymore. E.g.: if you spend £500 on advertisement to get customers and you make £3000, which is at 1:6 ratio, then you put £1000 on advertisement to make £6000, until you can’t handle it operationally.

That’s when you need to expand to hire more people to keep up. Remember, in some industry, the market is a fixed pie, the more shares that you grab, the less for your competitor, and this will become a ficious cycle.

Once you start losing market share for a period of time, you can no longer gain it back. Just look at whatr is happening to the big brands on the high street.