It’s never easy to start a business. There are so many things to think about and the pressure can make u take wrong decisions that can hurt your potential in the longer run. According to a survey, 20% of the start-up fail during the first two years of operation and nearly shut down after the fifth year. So how do you successfully keep your business running?
While there is no full-proof plan that can keep your business running because that depends on your efforts and your ideas, but here are some common mistakes compiled after reaching out to multiple business owners and financial strategists that you can avoid while building your start-up, so that nothing comes in your way to success.
The planning phase:
The planning phase may be a tedious task but without a proper plan for your business, you will just be walking a dark road. The planning phase includes your market research, profit model, and proper research on your business idea. This prevents you to cling to a wrong business idea. Think of long-term business goals. Holding on to the wrong idea can be a major reason why start-ups fail. Although many entrepreneurs consider their idea to be superior to others, it’s important to see the flaws as well. During planning remember a business plan, a financial plan, and a marketing plan.
Doing it all alone:
Doing a business alone can not only lead to extended problems but also it will cost you everything. Start-ups are like roller-coaster rides. There might be good times but in times of loss, you don’t want to bear the loss alone. Being a jack of all trades will not bring you anywhere, but having a business professional and an advisor can contribute to new ideas. Build a team of people with expertise in different areas.
Handling money the wrong way:
Having capital to work with and using it effectively is also a challenge. Starting a business would not require large investments. New business founders love to spend money on useless items or stars hiring a ton of people. Remember overspending initially can burn the start-ups’ finance. On the other hand, even under-spending and not investing your capital in new technology can limit the potential of success. You may hire a professional who is good with numbers.
Not making a commitment
When starting with business, you need a strong will and a good commitment. You need to be willing to make sacrifices and face all your hardships head on to be successful. Don’t let failure bring you down. Instead, take it as a lesson, learn from it, and re-work on your start-up and flourish it.
Taking too much influence:
It is okay to take feedbacks and criticism related to your business ideas. But too much outside opinion can make your self-doubt. Many people will give you their ideas, but it’s the entrepreneur’s job to chose who to listen to. If you start following everyone’s advice then you might get deviated from your original idea. You should be open to suggestions and improve your business but keep your vision set. Too many directions aren’t good for business.
Choosing the right location for setting up your business is a major challenge and this step shouldn’t be ignored by the entrepreneurs. Placing your business at the right location helps to improve your brand value. For choosing the right location you must do proper market research which will be done in your planning phase. The location should help attract customers and also the right talent.
Not understanding the market and your ideal customers:
A common start-up mistake is not knowing your market. You have to ask yourself- “will others pay for your product?”. Many times the fear of failure may cause you to undervalue your product. This opens a door to resentment and frustration. Exploring the market beforehand will help you decide the best entry point price for what you want to sell.
Another vital part of marketing is knowing your customers. You need to do proper market research to find out who you want to reach out to, where you will find them and how they would react to your idea. Building a great product is just winning half the battle it won’t guarantee success, but marketing it the correct way gives value to it.
Failure is a part of growing up. Not every start-up is a successful one. Learn from your mistakes and keep going. Surround yourself with like-minded people, and learn from their experiences and teaching. Test new ideas and be open to new ideas. Remember to take feedbacks so you can improve your product and reach your customer satisfaction goals.