Starting a business can be exciting but also a daunting task too. Today, we’re covering common mistakes to avoid when starting a business.
- Knowing your industry, but not your market. You can have the greatest product or service in the world but if no one needs it, you just have the product sitting on your shelf. Take the time to study what the needs are and how you can help solve them.
- Not hiring the right vendors. Chances are there will be tasks to your business that you’ll need to outsource for. It’s imperative to do your homework first before you shell out a lot of money. Read this article in Entrepreneur, it features a case story of two brothers who hired the wrong web developers. It cost them three times as much to finally get a good website that their customers could use.
- Being afraid to make mistakes. Don’t let the fear of failure prevent you from your dreams of entrepreneurship. There’s no around making mistakes along the way, rather than looking at the negatives, learn from those decisions because now you’ll know what not to do and what doesn’t work. You have more knowledge than if you hadn’t tried at all.
- Not budgeting enough. We all know it takes money to make money. And in starting a business, this is one of the areas that a lot of startups error. When planning your business type, whether you’ll be a sole proprietor, partnership or LLC, etc., know off hand how much money it will take to start, keep your bills paid in the meantime, staff if applicable and future expenses. The experts say to have enough savings that will tide you over for five years at least. And don’t forget to include paying your salary.
- Not preparing an effective business plan. Without a plan, you won’t have the data to ensure you’re on track with your business. Plus, you have no way to assess the areas that are successful and to concentrate on others that need improvement. You’ll want it on paper to also present it possible investors, partners and collaborators. Read this post on writing an effective business plan.
- Doing it all yourself. It’s exciting starting a business so it’s easy to want to do everything. However, this is a quick way to burn out and there are some tasks more suitable to others. Don’t overlook delegation or outsourcing. This way, you can allow your team to use their strengths while your focus can be on the areas that really need your attention.
For more helpful tips, check out these articles:
- 10 Startup Mistakes Every Entrepreneur Should Avoid – Business News Daily
- 10 Common Mistakes to Avoid when Starting a Small Business – BusinessTown
- 10 Common Small Business Startup Mistakes – The Balance Small Business