Starting a business is an exciting and scary journey. A startup is not just an organization selling products or services. It is the result of dreams and efforts coming together. And, a single mistake can break the startup even before setting a firm foot in the journey.
Fret not, we at Evergreen Business are here to share 7 mistakes that any new entrepreneur can avoid while starting a business:
- Not making a business plan:
Even though you may have a great idea, not preparing a business plan can make it a useless thought. A business plan acts as a guide, a roadmap that shows you direction and unexpected roadblocks. Hence, it is essential to create a business plan, as it keeps us informed and in line with our goals. - Not doing research:
Starting a business without thorough research about the current market trends in the industry you wish to start the business is a big NO! Market research keeps us aware of the current market trends and strategies used by similar businesses. This research helps us make the correct decisions about the product or services that need to be offered, the pricing strategy, etc. - Not considering your Strengths and Weaknesses:
No two people are alike. Hence, each of us possesses strengths and weaknesses that are as different as day and night. If we don’t consider these 2 points while selecting a business and creating a plan to fulfil the business idea, this can lead to disastrous results. - Ignoring competition:
If getting admission to a prestigious university can have competitors, it is a no-brainer; even businesses will have competitors. And it is best not to ignore your competitors. Even if you may not come across any competitor immediately while starting the business, it is good to have a plan in place to tackle competitors in the future. Finding your competition, their services, USPs helps you build your products or services and marketing for your business to stand out in the crowd. - Lack of focus:
Starting a business is like juggling. It requires a lot of patience and focus. Once the sale of your products and services starts, it is inevitable to lose focus and get loaded with mundane yet repetitive daily tasks. To ensure you stay on track and don’t lose your focus, you may try goal-setting. You can start with weekly goals and then gradually prepare long-term goals once you are confident you are sticking to those. - Inadequate finances:
Okay, so you had x amount you calculated that would suffice to start your business. But did you think or plan about what next once you begin the business? Did you ask yourselves how long the amount would sustain you? Not all businesses generate money right away; it takes days, weeks, or even months and years to create an income that would keep you afloat. - Neglecting marketing:
Yes, the initial period while starting a business might be a little financially constraining. But it doesn’t mean you will not invest in marketing. Or else how would you consumers and audiences know that you have entered the market, correct? Hence, if not a substantial amount, at least some amount should be invested in marketing.
Conclusive reflections:
By avoiding the above mistakes, you will start your business, with fewer hiccups, at least with the planning part being in place.
It is essential to consider the above factors. Failing to address the above issues, you might experience challenges that you cannot handle, leading to closing down! Well, we don’t want that, correct?
To avoid these mistakes, you should:
- Think and rethink the idea. (in short, spend more time in ideation and the plausibility of the idea)
- Do extensive research.
- Speak with other similar businesses (if possible)
- Consult specialists
- Create a business plan and set goals.
- Track your finances, and keep alternatives ready for funding
- Be focused. If required, hire specialists.