Mistakes To Avoid When Starting A Business
Generally, we all makes mistakes but when you think to start a business and you want your business grows successfully then you need to avoid some common mistakes, which most of the entrepreneurs makes when they start a new venture.
You don’t have to be a biz wiz to avoid making mistakes. Instead, you can learn from other entrepreneurs have done wrong in their business.
In this article, we’ve provided a list of some common and biggest mistakes that new businesses make, if you are thinking to start a new business or you have just started a business then by avoiding these errors you can grow your business easily.
Please note that, this article is a informative and a suggestion, not a legal advice. Consult with your advisor to start a new business.
How To Start A Business – Where To Begin And How
Starting a new business can be difficult, but if you break down the process of starting your new venture into individual steps you can easily do it. To start a new business you follow some important steps, which will be helpful for you:
- Do a thorough market research before starting a business. Before staring a successful business study some running surveys, holding focus groups, and researching SEO and public data.
- You should prepare thoroughly before starting a business, but realize that things will almost certainly go awry. To run a business successfully, you need to adopt the changing situations.
- Build up your brand and get a following of people who are interested in what your business offers.
Mistakes To Avoid When Starting A Business
Starting a business is a bit challenging, but there are many areas you can focus to make it successful. According to the U.S. Bureau of Labor Statistics, more than 18% of new businesses fail or get unsuccessful during their first two years of operation. More than 55% of all businesses don’t survive past the fifth year. So it is a important and big question that how to successfully launch and run your business?, and Which mistakes you should avoid while starting a business?
We are compiling here some of the common mistakes you should avoid while starting a business:
1. Without Having A Business plan
So many businesses start without a basic business plan, and if you don’t have any business plan for your business then you are making a biggest mistake, and you are essentially planning to fail.
If you don’t know, What is a business plan?
Basically, Business plan is a document that lays out your goals or target for your business.
It means, you are focused for your goals for the next four to five years, which includes financial projects.
With a business plan, you’ll outline how you can achieve all of your goals. Starting a business without a plan is like going on a road trip without a map, it means you are taking risk a lot of wrong turns and dead ends.
To grow your business successfully you must have a business plan, if you want to raise money from investors then also you need a business plan.
You have a business plan which describe all the section and aspects of your business as well as your services and products that you are planning to sell in the future.
A good business plan includes some important aspects i.e.
- It should contain an analysis of market, with a competitive research of other similar companies.
- It should have the proper detail about how your company will be structured and managed.
- Your marketing and sales strategy.
- Your funding or investment requirements.
- Your financial goals for the next three to five years.
So, a good business plan evaluates the market for your product or service and the competition you’ll face, amount of money you’ll need to get started and run it successfully and also most importantly the income you can expect to make from your business.
2. Being Afraid To Fail
The biggest mistakes many entrepreneur can make is to be afraid of failure. Without doing any thing or not giving an effort to your business you can’t achieve success. Remember one thing always that, failure is the key to success, and taking a foot forward to start a business is a positive step for your future business.
Every one makes mistakes but learning from your mistakes and make your business more stronger with the time is most important.
3. Not Having A Marketing Plan
To run a business successfully you must have a marketing plan. Without a marketing plan, you can’t expect to make any any money if no body knows about your business.
A good marketing plan includes, some important things i.e.
- Identify your ideal customers.
- Figure out the best way to appeal your customers.
- Make your business different and lucrative from your competition.
- Always make some attractive changes to target your customers.
Being organized is the important factor to achieve success in any field whether you are running a business or doing any other job or work.
Running a business is like being a circus ringmaster. When you run a business you have dozens of things happening at once. To all these things or works properly you need to be organized.
If you are disorganized, it will be difficult for you to handle all the things together. Being organized is a key to grow your business. if you make a to do list, manage your work and set your priorities to be done on routine bases then you’ll find very simple and easy to run a business. Doing your work as per the schedule you make, will be more productive and helpful for you.
So if you want to run a successful business, avoid the mistake of being disorganized.
A new business won’t be build in one day, it takes some time. To establish a successful business you need patience. Many businesses don’t earn any profit in the first year or two, and it is common to suffer some setbacks after some initial success.
To make your business successful you need to be patience and financially reserve.
6. Trying To Do Everything On Yourself
A big mistake most of the entrepreneurs make is to think that they can do everything on your own and they can operate independently without surrounding themselves with wise counsels. Don’t think, you can run a new business all alone.
To run a new business successfully, you need some trustworthy seasoned advisors to discuss your business ideas, strategy, challenges and progress.
Keep one thing in your mind while starting a new entity that, no businessman is an island, and no businessman knows everything. So don’t even be afraid to seek help from an expert when you need it. Hiring experts will have a huge impact on growing your business.
And the money, you spend on good expertise could be repaid many times over because you avoid costly mistakes along the way.
7. Selecting The Wrong Business Entity
Some people start a business by just selling their product or service to the public. They don’t give much attention to how their business should be legally organized, and how to do it.
If you want to run a successful business, you need to take a step to forming a legal business entity.
To legalize your entity, you need to take few steps i.e. which type of firm or entity you want to set up like:
Sole Proprietorship- if it is a one person business.
Partnership – if the business is co-owned by multiple people.
So, if you are thinking to start a business, it’s important for you to select the right form of business entity and legalize it will be beneficial for you.
8. Not Getting The Right Insurance
Insurance is the super important factor if something were go wrong with your business. Having an insurance helps to protect you from business related lawsuits, and business property insurance can protect you if equipment is destroyed, lost or stolen.
How should you get an insurance, depends on your specific business activities. You can search for a wide variety of insurances which is suitable to your business and finally select the insurance to protect your business from any kind of problem.
Many business owners make a common mistake while starting a business, is they don’t keep their costs under control.
In the starting days of your business it is important for you to control your expenses. It pays to be conservative in your spending until your business has a consistent track records of profits. Watch out all the expenses related to your business such as an office or retail space that is too expensive, nonessential employees, and more equipment than needed. Be cautious about taking debt.
Another big mistakes that a lot of entrepreneurs make while starting a new business is underpricing for their products or services.
Most of the new entrepreneurs think that charging less than their competitors will help them get more customers, but this strategy isn’t always work.
New businesses commonly do this for two reasons: either they are trying to get more business to
underpricing their products or services by undercutting their competition, or they have not done their homework and don’t even realize what they should be charging. When you don’t charge enough or the right price of your product, you may not even able to cover your overhead.
Start Your Business In A Correct Way
A successful business can not set up by one person alone, so surround yourself with subject matter experts and mentors you can lean and learn from. Don’t be stressed to think about the failure; instead, learn from your mistakes and start your business and make it successful. Try some new ideas and take feedback from your customers so can tweak your product to better meet customer need.
By avoiding all the mistakes which are given above, you can run your business in a correct way. Don’t be too hard on yourself while building your business. One of the best and important things you can do is take what might first seem like bad news, learn from it and put it to good use. With that mentality, business success can be right around the corner.
So, starting a business can be hard work, but if you break down the process of starting your new company or venture into individual steps you can make it easier. Rather than spinning wheels and thinking where to start and how to run a successful business, just took a foot forward and by avoiding all the mentioned mistakes, and grow your venture or business easily.
If you find this article useful for you, then share it with your family and friends too and also if you have any query related to this article please ask in the comment section.
Q.1. What not to forget when starting a business?
Ans. Don’t Waste Too Much Time on Your Business Plan, Don’t Be Afraid to Pivot, Don’t Rush to Be First to Market, Don’t Ignore Paperwork, Don’t Ask Everyone You Know for Funding,
Don’t Hurry the Hiring Process.
Q.2. What are common mistakes small business owners make?
Ans. Not having a business plan, Not having a marketing plan, Overspending, Underpricing etc.