According to the second survey of the Business Map by the Federal Government, just over 3.8 million national companies were opened in 2023. Consequently, the data shows that during the same period, 1.7 million companies were closed. The reasons that lead an entrepreneur to declare the end of their activities can be numerous and depend greatly on the business style and size of the enterprise.
In Brazil, the choice to undertake is very much related to a need, not necessarily a choice. According to GEM (Global Entrepreneurship Monitor) data, 48.9% of new businesses are started out of necessity. Therefore, many who try end up encountering difficulties, mainly due to not having the necessary knowledge for that role.
Keeping an eye on this scenario, sales and business expert Fábio Oliveira, CEO of Sales Clube, points out three common mistakes at the beginning of the entrepreneurial journey and how to avoid them:
- Unfamiliarity with the product and the customer
“Understanding your product may seem like an obvious task, but the market is saturated with people who only care about the sale, not the solution your product brings. Understanding the functions, history, dimensions, and usability of what you sell brings more confidence to the customer.” Oliveira adds.
This confidence translates into a good reputation for your business and, consequently, more sales over the useful life of the customer with the company.
In parallel, it is essential for the company to invest in strategies to know its target audience, such as creating personas, market research, competitor analysis, trend monitoring, behavioral segmentation, personalized marketing, data analysis, and continuous feedback.
- Not thinking about your online enterprise
Regardless of the service or product you are in charge of, having an active presence on social media is extremely important. According to the annual Commerce Research, released by IBGE, the number of businesses with more than 20 employees using the internet for sales increased by 79.2% from 2019 to 2022. It went from 1,900 enterprises to 3,400.
According to Fábio, social media now occupies a significant part of people’s day and often shapes consumption, whether it’s choosing a restaurant that appeared on Instagram or even buying clothes that appeared in an ad before a YouTube video. For the CEO, using digital wisely can generate many leads and boost your enterprise.
- Not having long-term planning
According to the BigDataCorp survey conducted in 2023, 51.15% of companies in Brazil close their activities before reaching three years. This number jumps to almost 89% after five years. Therefore, good preparation to face not only present challenges, but also future ones, is essential.
“The best product, the best structure, and all knowledge, although excellent indicators, are not synonymous with immediate sales. Every business takes time to establish itself, and along this path, mistakes will inevitably occur. Therefore, before any beginning, planning is a determining factor for your enterprise,” concludes the CEO.
