Experts identify two types of mistakes that companies make when doing business in Russia:
Incorrect assessment of the situation due to lack of competence.
Using the wrong solution mechanisms.
To eliminate them, you should involve third-party experts who can provide valuable recommendations. In addition, do not forget about soft skills. These skills are as important as financial indicators and business plans.
Let's list some other mistakes in doing business:
Using outdated approaches
Many businesses in our country investor database began to develop back in the 90s. At that time, the economic situation forced some people to launch their own business projects. At the same time, the market was poorly developed, so many entrepreneurs achieved certain successes without forming internal processes and automation. These companies did not try to increase profits, profitability, etc. Many people created businesses only to provide for themselves and their families. Times have changed, but Russian companies still work according to old schemes.
Scorched earth tactics
It implies that the company deliberately understates the cost of goods in order to force competitors out of the market. In this case, the enterprise stops focusing on long-term relationships with customers and improving the quality of the product. This strategy leads to the fact that more developed competitors suffer losses, as do the customers themselves. Clients stop trusting other suppliers. According to various studies, only 3.4% of small businesses in Russia exist for more than 3 years. All other projects are closed much earlier.
Therefore, customers should be wary of companies that engage in dumping. Those that remain in the market must be able to emphasize the higher quality of their products in order to stand out from the unfair competitor.
Focus on quantity over quality
According to Hochman Consultants, there is a disappointing trend all over the world: the costs of attracting new customers are increasing. Compared to the last decade, they have increased 4 times. Therefore, a company should focus not on the number of clients, but on quality. In this way, you can increase the average bill. At the moment, the quality of services provided leaves much to be desired. This is explained by increased savings on personnel qualifications, dumping and some other reasons.
To implement an effective project, you need not only to create a business, but also to run it correc