Digital marketing, including using content creation and social media, have opened up incredible opportunities for small businesses to reach, communicate and connect with potential customers. With the ability to reach a large number of customers at once at a low cost, digital marketing is a very attractive tactic for these entrepreneurs.

However, this dream opportunity can often turn into a nightmare for those companies that go down the wrong path. And while large companies can afford to make mistakes, small businesses don’t have that luxury.

Statistics in the US reveal that the small business landscape is somewhat more challenging. Ninety per cent of businesses fail within the first five years, while 60 per cent of businesses don’t earn a profit over their lifetime. Moreover, 99 per cent of new business owners underestimate the cost of starting a business.

Thus, when operating on such a slippery terrain, any waste of time, attention or financial resources can really negatively impact the business.

So, for a small business to succeed in social and digital arenas, it needs to make sure they avoid the most common mistakes. Here are a few pitfalls that small businesses should avoid if they want to make sure that social and digital works for — not against — their business.

These tips were part of my keynote and workshops at the ‘Inspire Growth in SME’ event held recently in Dubai, organised by Microsoft and its distributors, namely: Aptec, Mindware, and Redington Gulf.

* Not targeting the right platforms

There are constantly new hot social media platforms being introduced constantly, as well as more widely used platforms like Facebook, Twitter and LinkedIn, among others. Small business owners often have a difficult time deciding which platforms they should be utilising.

The real answer for any small business to the question of which platform to use comes down to where their customers for their specific business are spending time and are receptive to hearing about business messaging. For example, in my customer base, while many spend time on Facebook, they are having personal conversations there, but more business conversations on Twitter, so I focus my time there.

However, I have a restaurant that I consulted with where the social and visual nature of both Facebook and Instagram provided better interactions for their business.

There isn’t one size fits all for the ‘right’ platform, so businesses that try to be where their competitors are may find that they aren’t seeing appropriate returns on their investment.

Additionally, some small business owners try to keep up with every new platform, which can use up substantial time and other resources. If your target clients haven’t adopted Periscope, Vine, Snapchat or the new hot platform du jour, you don’t need to worry about being there.

* Not being consistent

While social media can be fun when others are engaging with your content and postings, it can also be demoralising when you aren’t seeing immediate results. As with other marketing — and maybe even more so — you need to be consistent with social media in order to see results. You can’t pursue a “one and done” strategy and expect to be successful.

Small businesses that aren’t consistent with putting out content on a regular basis will find that they are wasting a major opportunity.

* Not taking advantage of social tools

Small business owners and their staffs are always short on time. Using social media marketing can seem like a major use of time, especially if someone on the team needs to go onto each platform multiple times a day.

Small business owners who do this will find that digital marketing is very time intensive. However, they can avoid this by using social media programmes like Hootsuite or Tweetdeck that allow entrepreneurs to pre-programme and schedule their social postings. This gives the company a consistent presence on social media without the staff having to be online constantly.

Also, failing to use analytics, whether free ones like those that are available through the platforms or through separately purchased apps like Sprout Social, means that the entrepreneurs aren’t analysing what’s working and what isn’t resonating with their target customers. This can lead to wasted time and effort, which no small business can afford.

* Promoting vs communicating

Social media is like a really big neighbourhood cafe, where people gather and share information, build relationships and ultimately do business together. You would never walk up to a stranger and start the conversation by pushing your product. However, on social media, often small businesses do this far too often.

Entrepreneurs that fail to use social media to communicate their brand values, be helpful to their customers and build up relationships and trust will end up frustrated that their efforts aren’t working. However, those that use digital marketing to listen, put out helpful content and communicate regularly will be duly rewarded.

The writer is a former investment banker, CNBC On-Air Contributor Entrepreneur and New York Times’ bestselling author of ‘The Entrepreneur Equation’.