Business
9 Mistakes to Avoid When Starting a Business



If you are looking to start a business, there are going to be some pitfalls along the way. The best you can do is to become aware of them, and quickly avoid them to ensure that you do not potentially sabotage your new business, or turn it into a failure rather than a success. Have a read below of some business mistakes to avoid. 


1) Not Doing a Business Plan


So often we hear people ask “Is this a good business idea?”. Many are and many aren’t. The problem is that unless you get that idea onto paper into a presentable manner, it is not an idea and most definitely will not go any further than the question you had asked. The idea of a business plan is to assist you in getting information down onto paper, which may be time-consuming and include some research, but investing that time and money now will save you time and money later. 


2) Doing What You Love


The reality is there are a whole lot of people out there who love things they’re not good at. Bet you can name several you to know off hand. The person who thinks she's a great cook — but isn't. The person who thinks he can fix pretty much anything — but can't. Don’t do what you love; do what you’re good at and what people will pay you (well) for. It’s not as catchy, but it’s a whole lot more profitable — and isn't making a profit the reason you're opening a business?


3) Not Doing Any Market Research


I see increasing numbers of people starting businesses without bothering to do any of this – and then being heartbroken when their new business, which they’ve invested so much time and money in, collapses. Test your products and services first before you start a business. If you don’t, you have no idea if people are even going to want to buy them. You may think you make the tastiest pierogi in all the world. But will anyone else?


There are an increasing number of founders that are starting businesses without bothering to do any market research, spend hours of time and significant amounts of money, only to see their business collapse. 


4) Ignoring the Competition


Ignoring the competition is another potentially fatal business mistake. An aspect of competition you need to understand is market saturation. The market is only so big, so to speak, for every product or service. So, for instance, if you want to open a business, there may not be any “room” left in your local area to do so because of those businesses that already exist; the market is already "saturated" with this type of business.


5) Not Taking Into Account Your Own Strengths and Weaknesses


Sometimes our strengths or weaknesses don’t compliment the business model we want to use, leading to unfavourable results. For example, if you’re not a friendly, outgoing type of person with good people skills, then a people-facing business that you’ll need to take charge of may not work as well as you had hoped. It doesn’t matter how many years you’ve dreamed of opening that business for, it’s not for you.


That doesn’t mean you can’t buy such a business or start one yourself, but for it to succeed, you need to be aware that working that particular role is not something you should be doing; you’ll need to hire an employee.


6) Not Understanding What You’re Actually Selling


Helena Rubinstein, the first self-made female millionaire, didn’t become rich selling face cream; she became rich selling beauty. ("There are no ugly women,” she used to say, “only lazy ones”.) If your new business is going to be successful, you need to know what you’re actually selling and craft your unique selling proposition accordingly.


7) Not Making Sure You Have Enough Money


Ninety-five percent of businesses will not make money when they first open and a large proportion of new businesses will not make significant money for years. 


Which means you (and your family) have to have enough money to live on while your new business is getting established, as well as enough money for the business to survive and grow. Not getting the money to do this lined up before you start your small business is a serious business mistake.


Small business financing of some kind is the most obvious way to do this, either through a traditional lender or through a non-traditional alternative. Perhaps you can qualify for a startup grant.


How to Get Your New Small Business to Make Money includes some other ways you can bring in bucks while starting up.


8) Not Doing Any Online Marketing


One way or another, your small business has to be online. You may or may not need a website but your business needs to be able to be found by and promoted to the ever increasing number of people who use the web to find the products and services they want and need.


If you’re not going to do anything else, establish some sort of home base for your business online and be sure that your small business is listed in various online directories. Actively marketing your small business online is even better and will give it a far better chance of reaching your customers.


One possibility is to engage customers through social media. Learn How to Create a Social Media Plan.


9) Trying to Do Everything Yourself


You can’t. It’s that simple and that aggravating. Running a small business, even if it’s a one-person business, involves so many different tasks that no one person can do them all, at least very well. Even if you have all the skills to take on each task, you would still be constrained by time. Most days, you’ll be lucky if you even get done what you planned to get done when your day started.


So avoid the business mistake of trying to do it all and increase the chance of your new business succeeding by getting the help you need from the get-go. Learn how to delegate, hire and outsource to make the most of your skills and benefit from outside expertise. 


If starting a business is in your future, understand that starting a business is a process, not an event. If you take the time to do the thinking and the research and avoid the business mistakes discussed above, you’ll hugely increase the likelihood of your new business succeeding.


If you require any legal or marketing assistance while starting or growing your business, please visit Barrk Marketing and Legalese's business page to access their service and contact information. 

  • Business
  • marketing
  • business plan
  • startups
  • cash flow
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