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  Like Michael Porter once said, “The essence of strategy is choosing what not to do”. Most times, it is important to know what not to do to avoid pitfalls capable of sinking your business even before you start. It will be a shame to fall flat simply because you failed to conduct appropriate research on the mistakes that other entrepreneurs have made. Business strategy is the crux of any successful organisation and determines how the business will run and thrive in the years to come.
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In this article, we’ll be discussing 7 common business strategy mistakes you should avoid as an entrepreneur or businessperson.  Let’s get started!

What is a Business Strategy?

In layman’s language, a business strategy is a company’s game plan, which will help it stay in business in the long run and achieve set goals. A business strategy largely depends on smart choices and decisions, starting with how to utilise resources, how to compete in the crowded marketplace, how to attract clients and a whole lot of others.

 Common Business Strategy Mistakes You Should Avoid

Learning from the errors of others helps you scale faster and avoid a repeat of the failure cycle.

1.  A Headless Vision

Imagine a cow running headlessly along the road. What do you think would be the outcome? It would run to its death. Unfortunately, that’s what most entrepreneurs do; they start without a clear vision, and in a few years, they pack up. You must have a clear vision of what you want to achieve and how you want to achieve it. Again, it is one thing to have a clear vision, and it is another thing for this vision to be manned by a leader filled with wisdom. Ensure your business doesn’t lack both.

2.  Incoherent Business Plans

Just like Leonardo Da Vinci said, simplicity is the ultimate sophistication. A lot of people complicate their business strategies with complexities, forgetting that the simpler it is, the more achievable and actionable it will be.

3.  No Market Research

It’s funny how many entrepreneurs claim to know their customers, and they end up marketing products or services without market demand. It is very important to regularly conduct market research as this would help you know your customers and their pain points, industry trends, competitors and emerging technologies.
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4.  Overlooking Financial Planning

One of the major reasons why some of the businesses that started on the right track failed is poor financial mismanagement. For any business to thrive, there must be a clear financial plan guiding the business operation. It is also important to operate an emergency fund, which could become handy in times of crisis.

5.  Not moving with the Wave of Digital Transformation

A lot of businesses are stuck in the analogue age simply because they are afraid of change, but the truth is that digital technologies have come to stay, and businesses either have to adjust or be ready to get kicked out by competitors. This digital age has brought about the birth of social media, e-commerce, artificial intelligence, etc, and these have revolutionised the business world. To stay relevant in this era, you need to stay updated on trends and invest in building a strong digital presence.

6.  Neglecting Customer Feedback

This is a core business strategy that many entrepreneurs ignore. Little wonder Michael LeBoeuf said, “A satisfied customer is the best business strategy”. Never assume that you know what your customers want without hearing from them. Analyse customer feedback, implement actionable change where necessary and build a solid customer relationship.

7.  Ignoring Employee Growth and Development

Your employees are your most valuable assets because they’re the individuals who’ll help you bring your vision. Invest in the career growth of your employees through training, mentorship programmes, workshops, conferences, etc.
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Concluding Thoughts

Every successful business is built on strong business strategies, not on mere wishful thinking. Therefore, avoiding these common business strategy mistakes will not only help you grow but will also help you stay ahead of competitors.
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This article was first published on 28th May 2025
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victor-ifegwu-mbonu

Ifegwu-Mbonu Victor is a Personal Growth and Leadership Trainer who provides training and coaching to individuals and organizations.

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