Don’t Make These Common Startup Mistakes Entrepreneurs Overlook.
By Stacy Ketiku
More businesses are springing forth daily and getting very innovative. However, it is essential to acknowledge that numerous businesses encountered an untimely death or are currently struggling to survive. In most cases, this happens as a result of some common startup mistakes entrepreneurs overlook before they launch. If you do not wish to go down the same dreadful path, you should pay careful attention while you keep reading.
Mistake 1: Not Starting the Right Business
One of the most common startup mistakes you must avoid is failing to venture into the right business. Your next question might be, what makes one business right and the other wrong? Because a business is easy to start doesn’t mean you should get into it. Not needing a lot of startup capital also doesn’t mean it’s great for you. And getting into a business because you need to make quick cash is a total no-no.
The right business is one that solves the specific problems of a specific group of people. There’s a saying that people don’t need new businesses, they only need solutions to existing problems. Now you need to identify if you’d be providing such a solution as a product or service. Having a valuable business implies that you are a solution provider and you care more about your customers than merely making a profit.
Mistake 2: Not Having a Business Plan
Your business plan is a written document that describes a business in detail to highlight its goals, the operations, financial and marketing aspects of the business, competitive analysis, and more. No matter how small you think your business idea is, you need a business plan to direct your execution of it. If you properly prepare and follow this document, you will be able to avoid some blunders that can take you off the market. Besides, you will also understand how your business is expected to generate consistent cash and know how your business is performing every step of the way. If you can’t create this document by yourself you can hire a professional business strategist to guide you. However, never overlook this one in particular.
Mistake 3: Not Going Digital
Some business owners still think going digital is an investment they certainly can’t afford. The truth is, with a substantial budget, you can achieve a lot more than when no budget is allocated to digital marketing. Rather than hire several marketers to evangelise your product and get little or no patronage in return, digital marketing offers more. You can customise your needs to fit your budget, then reinvest your profit for more marketing benefits. Traditional marketing costs more and brings fewer returns when compared to digital marketing. Starting with a website, if you implement an appropriate digital strategy your business will experience more conversion, a wider reach, visibility, and engagement, amongst others.
Mistake 4: Going Big Too Fast
Every business person looks forward to that point when they grow from where they are to a point in the direction of their big picture. A practical example of this is, starting your tailoring business from a corner of your bedroom but seeing the need to get yourself a shop after about a year. Getting a shop is a great move if your income supports that. And even if it does, do you have a consistent client base that can earn you enough money to pay your bills and other expenses? It isn’t yet time to make that move if you’d need to take a loan or struggle to pay your rent when your house still serves your purpose quite well.
With dedication, proper planning, marketing, and other factors put together, be rest assured that at the right time, expanding your business will only happen naturally. You won’t need to lose yourself and business in the process.
Mistake 5: Not Knowing When to Exit a Business
It’s a hard reality, but you might need to stop giving CPR to dead situations. In some business scenarios, one might have done everything possible but the business just doesn’t seem to be making any headway. If a large number of your ideal market no longer have the problem your business is out to solve, it simply means you are no longer valuable.
As you run your business, you’ll surely learn on the job. It is also a great idea to stay open-minded and actively listen to stories from other entrepreneurs in your industry or who have experienced something you can learn from. Are you aware of any other common startup mistakes you have learnt while running your business? If yes, do share with us in the comment section.