Tag Archive | Startup mistakes

Top Mistakes People Make When Launching Their Own Business

 

mistakesGiven the rate of failure for startup companies, it goes without saying that this is just the tip of the iceberg in terms of problems new companies can experience. However, while this may not be a complete list, it is a good starting point to use as a “what not to do” when thinking of launching your new idea onto the business world.

Mistake #1: Entering An Area They Are Unqualified For

Let’s say that someone has heard that there is always a call for recruitment companies. It’s a profitable sector of society and there will always be a call for such kind of services. So, on the surface of it, that seems like a good business area to try and start a company.

However, it’s only a good area to launch a business into if you have an experience in recruitment. If you don’t, then you’re not only going to be trying to learn an entirely new industry, but you’re going to be doing it when your business aspirations and finances are on the line.

A surprising number of people throw themselves into a sector as they have heard it’s profitable, with no further thought beyond that. To truly make a business work, you need a background of experience in that area to call on.

Mistake #2: Knowing It All = Knowing Nothing

If you’re a doctor, you might think that you know all there is to know about opening your own surgery. On some levels, that’s entirely true – you’ve avoided mistake number one by entering a sector you actually have some experience in. Added to that, there’s no doubt that you’ve got the medical skills that you need to get the job done.knowing nothing

However, this doesn’t mean that you know all there is to know about the various aspects that go into running a business. Knowing the ins and outs of the endocrine system doesn’t mean you have a clue about healthcare interior design; being able to diagnose an infection on the spot isn’t going to prep you for dealing with business finances.

As this example shows, just because you have requisite expertise doesn’t mean you know how to run a business. Don’t think you know everything; you’re going to need help and to be able to learn on the job. If that sounds like your idea of hell, you might want to think again about whether a business is a viable step for you.

Mistake #3: Starting Too Big

By far the biggest mistake you can make when launching a business is starting with ideas that are too grand. Even if you can convince investors to get on your side, you have to try and keep your thoughts in line with the realities of the situation. You’re new to the business world and while you might have the best idea in the world, that doesn’t mean you have a proven track record of making it a reality.

Always look to make your business planning begin with a small scale, just to prove that you can do it. Going small, to begin with, will give you the chance to problem solve without being overwhelmed, ironing out the kinks for the expansion that is inevitably in your future.

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The Startup Mistakes Entrepreneurs like You Have to Avoid

startupStarting a business is usually like taking a huge leap into the unknown. If you’ve never done it before, it is very easy to make mistakes. And there is nothing wrong with making mistakes if you learn from them.

However, there are some large mistakes that can be avoided. And if you can avoid making a costly mistake, then it is always worth doing so. So, read on to find out what some of the most common startup mistakes are and why you need to avoid making them.

Not Getting the Right Support

If your business doesn’t have the right people to back it up, then it should come as no surprise when it becomes to stumble and fall. You simply cannot go it alone when you run a business. You need a diverse group of people who can also contribute something to the running of the business.

Each person should have their place and a particular set of skills that can be drawn on for the good of the business. This is what constricting a team in your business should be all about. Don’t think that you can go it alone because there will simply too much work for you to deal with adequately.

Handling Money Recklessly

The money that your business earns is going to be its lifeblood. You can’t expect the business to succeed or last for very long if you don’t handle money correctly. It’s all too easy to let these kinds of issues slip from your grasp. But doing so is never a good thing.

Spending too much is one of the most common kinds of financial errors that new entrepreneurs make. It’s easy to see how this happens. When entrepreneurs are not scrutinizing expenditures, their eyes are taken off the ball. At that point, it’s no surprise that the business starts spending too much.

Failing to Protect the Business and Its Ideas

Most new businesses start because someone has a new idea. This new idea could be a spin on an old idea. Or it could be something entirely fresh and new. If your idea is brand new, you should focus on protecting it in the best way you can.

This will stop other people from stealing the idea and making money from it. You can read these world patent marketing complaints so that you know what to avoid. Making sure that every aspect of your business including its ideas is protected, is vital.

Not Making Life Easier for Customers

When your business is small, people don’t instantly know about it. They don’t know why they should engage with it either. You have to give them a reason to do so. If you don’t, they will probably just stick with the brands and companies that they already know.

That’s not what you want, so make life easier for your potential customers. By doing this, they will be more likely to give your company a try. This can start by choosing the right location for the business. It should be in a place that is easy to reach and gain access to. It should also be visible.

5 Deadly Mistakes That Every Startup Entreprenuer Must Know

 

 

startup mistakes

Most startups collapse after few months of operation despite having very great ideas that can transform the world. It’s indeed a heartbreaking moment to see your first business venture going down and you have devoted all your resources in the hope of growing it into a big empire.

The main reason that contributes to startups failure is  the lack of exposure or experience in running business. When new entrepreneurs start trading, there are a lot of mistakes that they end up committing which in turn cause a great downfall to their business ventures.

Prior preparation and adequate research in your preferred business niche can save you a great deal when it comes to making a perfect startup pitch. This article gives an illustration of the most common mistakes that kill startups that every green entrepreneur should know.

Being too much profit oriented

Not every startup will guarantee profit in the short term. It is, therefore, advisable that every entrepreneur should focus more on setting the structures right and make clear guidelines on how to achieve the strategies set. When you set all the business basics right, you are assured of smooth business management because every department or product line infrastructure is clearly stipulated.

Read Also: Key Factors that determines new business success or Failure

When all the set strategies are implemented right, the business becomes easy to run since there is a clearly set goal that you will be working to achieve. When you work to achieve results, the profit aspect of the business will finally be realized and the startup will have already established grounds.

Poor strategy implementation

An ideal startup venture is built on a planned clear business strategy. All the startup entrepreneurs are so passionate to work on their strategies when pitching  their business ideas but most of them fail to remain consistent when they are faced with challenges. There are few hitches that every startup experience depending on the type of the business. However, the majority of the startups do not have the capacity or courage to withstand such challenges and they often end up changing their business strategy.

Frequent changes of business strategies have adverse effects on startups since the overall business objective is never achieved. Therefore, it is highly advisable that every newbie entrepreneur should conduct prior market research to identify the possible challenges that are likely to affect the startup and then prepare accordingly. Give the already set strategy sometime and when you put all your effort into it, you may find it working successfully in the near future.  Thus, avoid changing the goal post.

Failure to engage professionals

Many startups entrepreneurs venture into business without solid information in relation to the business that they want to run. When you get advice from individuals from all walks of life (your family members or friends), you will end up having too many opinions that are not substantial.

Therefore, it is highly advisable to engage a profession who has a lot of experience in the business niche that you are targeting to venture. Experts will help you prepare adequately and you will have prior knowledge of challenges to expect and appropriate methods that you can employ when faced with such challenges.

Lack of a feasible business idea

Many entrepreneurs often fail to establish a clear reason why they want to venture into business. Some are attracted by illusions of making profits without really understanding the underlying factors that determine business success or failure. Which gap are you filling in the market? Are your product/services in high demand? Where are you going to locate your business or does your business ideas have growth potential?

Such questions can serve as a guide that can help any startup to validate their business ideas and determine whether they are viable or not. Conducting market survey prior to starting a business is advisable as it will enlighten you with first-hand information that will help you understand whether your product or services will perform well.

Read Also:5 Tips on How to Grow your Business Startup

Insufficient startup and emergency funds

Lack of adequate capital to start a business can cause your startup to stagnate and finally collapse. Adequate capital plays a major role in making a successful pitch. As we all know, most entrepreneurs start their businesses with capital from personal savings and borrowings from friends and family and in most cases the capital raised becomes insufficient.

It is advisable that you prepare adequately and have the right capital amount that will ensure all procedures and basic materials are made available so that the business can run efficiently. You can consider seeking startup loans from reliable providers but you should use the money borrowed wisely and repay the loan as soon as possible to avoid falling into huge debts in future.