Throughout the development of your business, there are numerous basic but often fatal mistakes that are frequently made, even by professionals who have been in the trade for quite some time. At times, they are not recognized until much later, making them difficult to rectify. Here are the most common mistakes to avoid during the business development phase.

Inadequate Preparation

It is surprisingly common for a company to eagerly pitch their services to executives without proper preparation. Prior to meeting with a potential client, research not only the sector they are in, but also the individuals you will be speaking with as well. Generate an agenda and focus on specific areas of interest. This saves valuable time for everyone and exudes confidence.

Overzealous Delivery

During the first meeting with a potential client, focus should be placed on a limited number of objectives such as building rapport and trust, establishing your credibility, understanding a client’s pressing issues, and creating interest. Too often, meetings are drawn out due to a sales pitch geared towards sealing the deal or talking in detail about a project. Refrain from overloading the conversation.

Focus on Solution Versus Need

While there is nothing wrong with trying to provide a solution to a problem, trying to fully understand the client’s needs can help illustrate how your product or service could adequately address their issue. Refrain from pushing your methodology on them and instead, work in conjunction with them to provide a solution.

Lack of High-Quality Questions

Questions are a normal part of meeting delivery and are an essential component to getting a client on board. Unfortunately, many individuals make the mistake of either talking nonstop or asking mediocre questions. Generate some truly thought-provoking and interesting questions that can be applied to a variety of settings.

Not Deriving Value

If your potential client does not feel a sense of value from your product or service after the first meeting, an additional meeting is most likely not in the works. Make your conversation useful, containing imperative information and a discussion geared towards the understanding of the presenting concerns. Use examples of what other clients have done and apply scenarios to help address their problems.

Businesses today need to be quick to get ahead. Whereas at one time the big were eating the small — the fast are now eating the slow. Those who are fast have certain characteristics; they are strategic, organized, and understand their priorities.

Their priorities are rooted in both the company’s vision, as well as its needs. Among the necessities of a company, four things that every business must have are:

1. Market Demand
2. Marketing/Branding
3. Operations
4. Finance

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Market Demand

People want to get together, even if it’s not face-to-face. As we saw in the Facebook movie, The Social Network, the concept underwent several overhauls in the process of being made, but was finalized when a friend asked Mark Zuckerberg the relationship status of a girl he liked.

By creating a way for people to get in touch, stay in touch, and communicate quickly on an individual or mass basis, Facebook fulfilled a need that only the Internet could offer. This need was desired both by individuals, corporations, and non-profit agencies. Even the US Marines have a Facebook page, and they’re gaining new followers every day.

Marketing and Branding

Allstate provides products to law firms. This is seen most greatly in their Allstate Style Index Tabs, which has Helvetica type as opposed to Helvetica Bold. That’s it; there is no other difference! While the difference is nil, law firms trust the Allstate brand and made the change to the tabs, which they are sticking with.

For newer companies, being able to be faster than Allstate, or other behemoths, is the key to success. This is found in guerrilla marketing through social media, which can help create a strong brand presence. As customers are engaged, they will become loyal, which will be seen as a stronger response is found in response to promotions and buyer programs.

Operations

When it comes to operations, there are many aspects to keep in mind. Among them are the policies and practices that define the organization. This includes approaches to quality management, internal and external communication, and customer service.

Interestingly enough, all of these can be considered marketing, as well, because when people have a great customer service or quality experience, they talk, Tweet, and write reviews about it. The same goes for when they have a bad one.

Finance

Lastly, money matters. Without capital, a business cannot function. If the mission and vision are the heart and soul of an organization, then cash is the lifeblood.

Complementing this is having good credit, a strong reputation that can bring credit and cash flow, understanding the advantages of accelerated depreciation, good bookkeeping, and ensuring that vendors and creditors are paid on time.

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While all four of these things are crucial to business, if one was to be ranked above the rest, it would be marketing and branding. The reason for this can be found in numerous examples where non-existent markets were made, such as with Listerine (originally a floor cleaner), the Pet Rock (it’s a rock!), and the Snuggie (a blanket with sleeves, or a bathrobe with no belt).

Launching a business is a big project that happens in many stages. There are weeks or months of planning ahead to make sure that the business will be healthy in the long term. Below are the five stages every business owner goes through in order to successfully launch their business.

Stage 1: The Dream Stage

Every person who wants to open a business is a dreamer — an entrepreneur. That is how they open businesses and have ideas in the first place. However, that dream must be put on paper and turned into something that is tangible and doable. Without the initial planning, most people will find that their dream died before they ever had a chance to really enjoy it.

Stage 2: The Actual Startup and Chaos

The process of starting up the business and getting it off the ground can be rather chaotic because the business is being created from nothing. There were no bank accounts, no employees, no inventory and no retail space. This means that the business owner has to go through and find all of these things.

When the business owner opens up accounts, finds employees and begins to order inventory, they must have a plan to sell their products or services. This is where the marketing phase of the business comes into play. The marketing of the business is incredibly important for the business to start off on the right foot. Without proper marketing, no one will ever know that the business even exists.

Once the business knows who their customer is, they must also set into place an accounting and operations system that makes sense. Everything from how the office is opened in the morning to when people are paid is very important. Once this foundation is laid down, the business owner can begin to expand.

Stage 3: Stability and Survival

Once the business owner is operating, they must have a strong online presence. Survival means reaching people in as many ways as possible. Having social media accounts, making online videos and reaching out to customers all over the world is far more effective than only focusing on the people around the corner.

The business must also be marketed properly. This means that it must have a professionally-designed logo, a motto or slogan written by a professional and promotional material that will make its way into the community.

Survival requires marketing and an online presence. Without these two crucial steps, the business will fizzle out when their initial customer base dries up.

Stage 4: The Growth Stage

Most businesses that are growing must decide if they are going to expand or invest their money. Businesses that make investments can collect on those investments to protect against losses. Businesses that expand must carefully research their expansion and plan to do so slowly for their own safety.

Stage 5: The Exit Strategy

Every business owner must decide if they want to own their business forever or sell their business and pocket the profits. Choosing and exit strategy is only fair to the employees and the business itself. If the owner wants to sell, they need to be prepared. If they want to stay forever, they must plan to run this business for the rest of their life.