6 Big Budgeting Mistakes Companies Make With Their Marketing Strategy

With the amount of perseverance and time invested into a business by a young entrepreneur or even a moderately sized company that’s been around for one or two years, it’s often hard to re-evaluate one’s budget and admit that there are glaring financial mistakes that have been made.

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Choosing a Business With No Market Demand

One of the worst things that you can do to yourself as a newer or smaller business owner is to trick yourself into thinking that your business occupies a specific niche of some sort and can capitalize on that market as a result.

Not Having Enough Cash Reserves

This signifies one of the classic budgeting mistakes for anyone — whether it is a business or an individual.

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Mispricing Your Product or Service

Determining the price of your product or service shouldn’t be like an episode of The Price is Right for your business, if that wasn’t clear already. The price of a product or service should be carefully evaluated in accordance with surveys sent to consumers about how much they would pay for your product and what prices they would think are reasonable. You need data and concrete evidence behind a price in order for it to function properly and allow your company to profit. You’ll want to familiarize yourself with the different types of pricing strategies as well to solidify your insight.

Not Understanding A Market or Consumer Behavior

If you’re going to go exploring in a dark cave, the set of things that you’ll want to bring along with you should consist of things that ensure your safety: the right gear, appropriate food and drink, clothes, a flashlight, compass, and so forth. In business, the dark cave is the “market and consumer behavior” and your safety equipment is the preparation you do to serve that market and understand your consumers. One example of a company that does their due diligence on this issue is Adventure Bucket List through their research on how the tourism industry intersects with their own corporate booking and touring services.

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Failing to Leverage Social Media

Most businesses don’t exist in a local vacuum anymore because of the nature and widespread reach possessed by the Internet.

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Insufficient Cash Flow

This sounds like the previous point about cash reserves, but it’s actually distinct. Cash flow is like the oxygen that’s breathed into the figurative lungs of a business that allows it to survive.

Vandy '17. Analysis, opinion, and commentary | Contrarian | use richard@decipherschool.com or mention me to talk!