Expert points out three mistakes you should not make when undertaking

According to a survey of the Map of Companies, the Federal Government, in 2023 just over 3.8 million national companies were opened. Consequently, data show that in 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 option to undertake is very related to a need, not necessarily a choice. According to data from GEM (Global Entrepreneurship Monitor), 48.9% of new businesses are opened due to some need. Therefore, many who try end up “barrando” in difficulties, much because they do not have the necessary knowledge for that function. 

With an eye on this scenario, sales and business expert Fabio Oliveira, CEO of Sales Clube, points out three common mistakes at the beginning of the trajectory as an entrepreneur and how to avoid them: 

• Unawareness of 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 that your product brings. Understanding the functions, history, dimensions and usability of what sells, bring more confidence to the customer.” complements Oliveira.

This trust translates into good reputation for your business and, consequently, more sales over the lifetime of the customer with the company. 

In parallel, it is essential that the company invests in strategies to know its target audience, such as persona creation, market research, competition analysis, trend monitoring, behavioral segmentation, personalized marketing, data analysis and continuous feedback.

• Not thinking about your online business 

Regardless of the service or product you are ahead of, it is extremely important to have an active presence on social networks. According to a survey of the Annual Trade Survey, released by IBGE, the number of businesses with more than 20 employees using the Internet for sale grew 79.2% from 2019 to 2022. From 1,900 enterprises it went to 3,400. 

According to Fabio, the social network today occupies much of people's day and often shapes consumption, whether to choose a restaurant that appeared on Instagram or even buy an outfit that appeared in the advertisement before a Youtube video. For the CEO, using digital wisely can yield many leads and leverage your venture. 

• Not relying on long-term planning

According to the BigDataCorp survey, conducted in 2023, 51,15% of companies in Brazil end their activities before completing three years. This number jumps to almost 89% after five years. Therefore, a good preparation to face not only the challenges of the present, but also those of the future, is essential.

“The best product, the best structure and all knowledge, although great indications, are not synonymous with sales at the first moment.Every business requires time to establish and in this way, inevitably errors will occur. Therefore, before any start, planning is a determining factor for your venture.” completes the CEO.