As an entrepreneur, making a success out of a business idea can be the biggest boost to your confidence. It might not be a six figure sum in six months or less, but your profit line has got off on a pretty healthy foot. You’re sure you’ve got a winning business formation here, and you’re excited to keep going and building on the success you’ve already established.
However, a lot of businesses that find this kind of early success can stall, and end up cruising rather than accelerating. You’ve hit the big leagues early on – where is left to go from here?
Early success can, ironically, set you up for failure. Why? There are various factors involved in the process. Here are a few of the most damaging you should keep in mind.
It’s a Confidence Boost
Like we mentioned above, an early success is going to push you forward and convince you that you’re doing the right thing in business. And we understand – it feels amazing to know that people relate to you, and enjoy your work, before you’ve even really got started.
Your words are being taken seriously. Your content is being consumed by exactly the right target market. Your product sold out its first run, and you’re keen to develop the second generation to ensure your innovation gets off the ground too.
What could be better for a small business competing against some very big names in an ever changing digital world?
It Can Also Generate Hype
‘Hype’ is a simple word for quite a complicated feeling. People are keen to see what you do next, and they’re excited for what you’re going to say or do. It feels like all eyes are on you, exactly where you want them, and you’re sure you’re going to impress a second time around.
This kind of hype, and the ‘wins’ you’ve secured from it, is all good news for a company in their first year. But don’t let it carry you away. Your early success does not automatically translate into continuous success.
Yet, it Can Set Unrealistic Expectations
Early success is the worst for making you think you’ve cracked it. You’ve managed the unthinkable, and people just can’t get enough of your little enterprise! Surely you can take this to a national or international level within the year, or within the next 18 months?
Probably not. It’s a hard thing to hear, but your small business needs time to adjust, and cope with all the attention suddenly coming its way. After all, if you lose any of it, you’re going to be gutted, and far more likely to give up on the idea entirely.
But that’s not how good businesses are founded. Success often comes with a fall, and if you want to rise back up again after your profits dip, or you receive a few bad reviews, you need to temper your expectations as soon as possible.
You’re More Likely to Overspend
This is another issue when it comes to your expectations. When you’ve had it good so far, and you’re bringing in a good amount of pre-tax money, you’re much more likely to hit the budget ceiling on frivolous expenses.
You might hire a few too many people, or you might acquire more physical space before you’re sure you really need it. You might even tap into a trend and spend a lot on ingratiating it, only for the trend to dry up and leave you with a lot of assets to try and shift at a reduced price.
Always be careful with your budget. The more you spend, the less you can get back later.
Reproducing the Success Can Be Tough
The market can fluctuate quite wildly. The more you want to be a success, the more it seems that winning combination moves away from you. And when you want to double down and reproduce that rapid success you gained earlier on, it’s best to do your research first of all.
What caused this ‘boom’ in your business? What marketing efforts did people really respond to? For example, if you’ve tapped into the meme market before and went viral, and you’re attempting to do so again, it can come across as ‘out of touch’. You don’t want customers to think you don’t really understand why your efforts were so well received in the first place.
You May Struggle to Build on Your Customer Base
The customers you’ve already secured may come back again, they may not. It’s normal to miss out on a bit of repeat custom due to a one-time buying hype and/or focusing on new customer acquisition only.
However, if these are the only customers you’re able to bring in right now, that’s a problem. In the short term it’s fine – all businesses have slow periods. But after a few months, it’s likely you’ll need to double down on your marketing strategy. This can be expensive if you’ve already used up the budget in your initial offerings.
But don’t lose hope yet. Think about contacting a digital marketing specialist, such as Top Marketing Agency Inc. The more you invest in refining your online presence, the easier it’s going to be to reach the people who are truly interested in what you’re offering.
Taking Your Time is Always Better
It’s true. It might be boring, and feel like you’re missing out on a lot of opportunities, but you do need to take as much time as possible. Your business shouldn’t only get one chance at success. Think about innovation, and where you can go next.
Winning early success in business might not be as good as it sounds. While it’s amazing to hit the ground running, it can make your later efforts less than spectacular. Don’t let yourself fall into this trap. A good marketing strategy keeps your profit line moving, and it’s worth it to take your time and perfect every move you make before you rush into anything.
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