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6 Ways New Businesses Waste Money

New businesses are wasting money every day when there's really no need. Find out how to ensure you make the right marketing choices for your start up or new business.

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You don't have to be an entrepreneur to start a new business, your business could be a blog (that you hope will gain lots of traffic and ultimately bring you a profit) or it could be an online shop.

If you're looking to make money out of your endeavours eventually, be it through food reviews or selling your crafts on Etsy, you need to learn a few things about how you can save some money.

The internet is incredible, it's enable millions of people to start their own businesses on a very small budget. You could start a business today, simply by selling your services on one of the many marketplaces.

The problem is, those who promise to do it better and cheaper than anyone else often drown the professionals out. It's not until these people are hired that the business owner realizes their mistake and puts it down to experience while being terribly out of pocket.

There are also a plethora of options for bringing a good return on investment, do you pay for Facebook advertising, invest in PPC, reach out to influential people or pay for banner advertising?

Here are five ways businesses waste money when trying to generate traffic and interest for their business:

6. Not Setting Goals

Before you pay for a single service, set a goal. What would you like to achieve? Would you like to feature in certain magazines, would you like to hit a certain number of sales or would you be happy with thousands of visitors to your website? If you don't know what you want, others you hire won't know either. Even if you don't reach your goals, you have a starting point and a clear target in mind; with this you can work out the cost per engagement, conversion or visit and scale according to your budget.
Andrew Toos / cartoonresource - Fotolia / Via keel-over.com

Before you pay for a single service, set a goal. What would you like to achieve? Would you like to feature in certain magazines, would you like to hit a certain number of sales or would you be happy with thousands of visitors to your website? If you don't know what you want, others you hire won't know either. Even if you don't reach your goals, you have a starting point and a clear target in mind; with this you can work out the cost per engagement, conversion or visit and scale according to your budget.

5. Not Communicating Effectively

As a marketing consultant, it still amazes me that some clients keep their budgets secret while hiding their own efforts previously. You need to communicate your needs effectively, from budgets to targets and efforts that have or have not generated results in the past. A copywriter, blogger, marketer, PPC expert, social media manager or PR company cannot read your mind, they need to receive your brain dump and I promise they won't judge you for it, they'll simply use the information to bring you a better return on your investment in them, thus widening your options and maximizing your reach potential.
Andrew Toos / cartoonresource - Fotolia

As a marketing consultant, it still amazes me that some clients keep their budgets secret while hiding their own efforts previously. You need to communicate your needs effectively, from budgets to targets and efforts that have or have not generated results in the past. A copywriter, blogger, marketer, PPC expert, social media manager or PR company cannot read your mind, they need to receive your brain dump and I promise they won't judge you for it, they'll simply use the information to bring you a better return on your investment in them, thus widening your options and maximizing your reach potential.

4. Paying Peanuts to Get Monkeys

It's a common phrase in the freelancer world, as there are so many who expect expert services for very little. There's probably a one in a million chance that you'll actually find a real professional for pennies as they simply don't exist. Anyone with real skills has increased their prices already as they are in such demand. I know, I'm one of them! In the beginning, while building a portfolio, I did actually write full websites for £10 and articles for £1 each but it was only weeks before clients competed to offer me more for my services and now I look back and smile while commanding an enviable hourly rate. If you pay peanuts you will get monkeys and they could damage your reputation as well as your business in return. I've known clients hire dodgy SEO companies who have bankrupted the business as they've made Google think the website is spam, due to the spam links and content they use as their SEO technique. Once Google decides your website is spam, there's no going back, you need to start all over again, new website, new business, new URL.I've known clients waste a fortune on PPC Management by hiring someone who isn't adwords certified. The agency use the client's money to learn more about adwords, watching it trickle down the drain as they make mistake after mistake which leads me to..
Via keel-over.com

It's a common phrase in the freelancer world, as there are so many who expect expert services for very little. There's probably a one in a million chance that you'll actually find a real professional for pennies as they simply don't exist. Anyone with real skills has increased their prices already as they are in such demand. I know, I'm one of them! In the beginning, while building a portfolio, I did actually write full websites for £10 and articles for £1 each but it was only weeks before clients competed to offer me more for my services and now I look back and smile while commanding an enviable hourly rate.

If you pay peanuts you will get monkeys and they could damage your reputation as well as your business in return.

I've known clients hire dodgy SEO companies who have bankrupted the business as they've made Google think the website is spam, due to the spam links and content they use as their SEO technique. Once Google decides your website is spam, there's no going back, you need to start all over again, new website, new business, new URL.

I've known clients waste a fortune on PPC Management by hiring someone who isn't adwords certified. The agency use the client's money to learn more about adwords, watching it trickle down the drain as they make mistake after mistake which leads me to..

3. Doing it All Yourself

You are obviously intelligent, you've started your own business. You're obviously skilled in certain areas, and that's a bonus BUT, the biggest mistakes I see businesses make are assuming they can do it all themselves. They want to write the website, promote the website, advertise the website all while running the actual business. PPC alone is so intricate and detailed that it takes months to learn how to do it properly with a good return on investment. Unless you've sat in the Google Campus and passed the Adwords exams with flying colours, please hire a PPC expert instead. I am 100% that if you try to do it yourself, without spending time on the exams and learning, you will lose a lot of money, you'll lose thousands… and you'll pay heavily or every click (that will never turn into a conversion).

2. Taking Shortcuts

One of the best ways to ensure a site receives traffic is organic SEO, but this takes time and it takes a lot of quality content and connections. Shortcuts in this area will leave you out of pocket and with a bad reputation. If you do want the traffic straight away, hire a real PPC agency that has a proven background in making new businesses money through PPC. This ensures you receive the clicks while your content marketer works on your organic listings.

1. Accepting Poor Interest Rates

Finally, one way new businesses waste money is by not seeing the bigger picture. Many entrepreneurs are so keen to get started that they take out huge loans with high interest rates. When starting out in business, it can be hard to borrow money as the business won't have accounts to prove the profit. You can ensure you pay the least though by keeping an eye on your credit score and talking with your bank manager about business loans and options.

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