When starting your own business, there are a few traps that you need to avoid, so your new business can truly flourish.
The key to your success is quickly identifying your mistakes, learning from them, and not making those same mistakes again, says Mike Michalowicz, a small business expert and the author of "Most Business Owners Fall in the Same Traps".
Entrepreneurs often ask themselves how they can avoid a business disaster, and although there is no perfect answer, it helps if you can avoid these 10 common mistakes that are known to kill businesses.
1. To Ambitious
A common theme that explains many of these small business mistakes and failures is trying to take on more than you can handle, overestimating your abilities, and not asking for help.
2. Due Diligence
Do your homework, and don’t go into anything without looking at all the angles of the business, including everything about your product or service, budget and cash flow, particularly your competitors and other products or services, and who will be your target market and how to access that market.
3. Proof of Concept
Having an idea is one thing, but it is essential to do your research to ensure that the business is viable and that there is a market for your products or services at the price point. Once you have developed your business concept then you need to conduct a proof of concept to ensure that your product or service is in fact what your customer wants. The best way to do that is in person, so you can ask open-ended questions and gain a myriad of feedback.
4. Business Plan
One of the most common mistakes that small business owners make is not writing a business plan. A business plan is an essential working document, that pulls your entire business together and is a road map to your potential success.
5. Time
Starting and running a business is time-consuming, so don’t underestimate the amount of time required, particularly when first starting out, to get your business up and running and then grow your business. Time management is crucial in every area of your life and particularly when you’re developing the business, as everything usually takes a lot longer than anticipated.
6. False Assumptions
Following a popular piece of advice, build it and they will come is another major business mistake. Forming a false assumption that small businesses are going to win business by not doing marketing is likely going to prove a massive error. Many times small business owners completely avoid marketing, making it one of the biggest mistakes for a small business.
7. Price
Yet another major mistake many small business owners make when first starting out is charging too little for their products or services. It’s all about figures and if your product or service does not cover your expenses, it may not be priced right or a viable business. When pricing you do need to look at the price points of your competitors and also compare benefits, value, and quality with the price.
8. Budget
Unfortunately, failing to stay within your business budget and overspending is an error too many business owners make when starting out. Everything costs money, and you’d be surprised at just how quickly money goes, so having tight reins on the budget is essential. Put contingencies in place so you do not run out of budget, and ensure your product or service will get out into the market and all your efforts aren’t wasted.
9. To Broad
A massive mistake many businesses encounter, they want to market to the entire population, well that just does not work. For one, you most likely won’t have the budget and two you’ll just get lost in the sea and no one will notice you at all. So, you need to refine your niche and target market to a small dot. The smaller you go the easier it is to market to your potential customer. Think small, not big.
10. Fun
When starting any venture enthusiasm is high, but as time goes by, that enthusiasm slowly disappears as the stress takes over, don’t let it. Take time out for yourself to avoid exhaustion and being overwhelmed, as that will assist in managing your business, along with your personal life. Fun is an essential ingredient to your success, so don’t underestimate it and take a step back and celebrate the smallest of wins.
You can reduce the mistakes you make as a business owner by knowing what mistakes to avoid first. Knowing the most common, and biggest, mistakes that people make when they are starting their businesses helps you avoid those very problems.
Comentários