Expert points out three mistakes you shouldn't make when starting a business

According to the 2023 Federal Government's second Business Map survey, just over 3.8 million new national businesses were opened. Consequently, the data shows that 1.7 million businesses closed during the same period. The reasons behind an entrepreneur deciding to cease operations can be numerous and depend heavily on the business model and the size of the enterprise.

In Brazil, the option to start a business is often more related to a necessity than a choice. According to GEM (Global Entrepreneurship Monitor) data, 48.9% of new businesses are opened due to some kind of need. Therefore, many who attempt it end up facing difficulties, often because they lack the necessary knowledge for that role. 

Looking at this scenario, sales and business expert Fábio Oliveira, CEO of Sales Clube, points out three common mistakes at the start of an entrepreneurial journey and how to avoid them: 

• Lack of knowledge about the product and the customer

Understanding your product might seem obvious, but the market is saturated with people who only care about the sale, not the solution your product provides. Understanding the features, history, dimensions, and usability of what you're selling builds more trust with the customer," complements Oliveira.

This trust translates into a good reputation for your business and, consequently, more sales throughout the customer's lifetime with the company. 

Simultaneously, it is essential that the company invest in strategies to understand its target audience, such as creating personas, conducting market research, analyzing the competition, monitoring trends, segmenting by behavior, implementing personalized marketing, analyzing data, and continuously seeking feedback.

• Don't think about your online business 

Regardless of the service or product you're offering, an active social media presence is extremely important. According to the Annual Commerce Survey, released by IBGE, the number of businesses with over 20 employees using the internet for sales grew by 79.2% from 2019 to 2022. The number increased from 1,900 establishments to 3,400. 

According to Fábio, social media today occupies a significant portion of people's day and often shapes consumption, whether it's choosing a restaurant that popped up on Instagram or even buying clothes advertised before a YouTube video. For the CEO, using digital tools wisely can generate many leads and propel your business forward. 

• Not relying on long-term planning

According to the 2023 BigDataCorp survey, 51,151 companies in Brazil cease operations before completing three years. This number jumps to nearly 891,000 after five years. Therefore, good preparation to address not only the challenges of the present, but also those of the future, is essential.

"The best product, the best structure, and all the knowledge, while excellent indicators, are not synonymous with immediate sales. Every business takes time to establish itself, and inevitably, errors will occur. Therefore, planning is a crucial factor for your venture before any start," the CEO concluded.