Starting a new business will always be a stressful job. Having to employ honest people, calculate risks, make sure to make more profit than loss , getting funding etc. there is no place for silly mistakes in a startup , you always have to be sure in whatever decision you make as it will affect your and the company’s future. you can always be confused about what to do in the beginning but confusion wont guarantee success, a small mistake can lead to very big problems. before taking any decision make sure you think about it 100 times and know the consequences of it. many start-ups fail due to lack of experience Most people starting a new Startup are inexperienced and tend to take wrong decisions in trying times. Due to pressure they fail to see the consequences and end up in a turmoil. This article mainly focuses on the mistakes that new businessman makes and how to avoid those mistakes.
- Doing it alone
Everything is better when there are more people with you. A business is not a small lemonade shop you can run on your own. You need different people for different type of work. You might think that you can manage all on your own, but time will come when you will have loads of work and at that time you will realize how much help you need. A new startup needs loyal hardworking employees they are the ones who will help you with most of the work while you are the brains of the project.
This people provide words of encouragement when something fails and help you take some major decision.
There are very few examples of people making a successful startup on their own. The support and faith of other people always is required and needed which you may not realize right now but with time you will understand how important those first few people were , without them maybe you won’t have reached the height you have now.
- Not having a plan
Don’t pe a lazy person when it comes to matters as serious as starting a new business. Always plan, steps which you should follow every time. It will serve as a guide on how to launch the startup and make it run.
It will cover every aspect of the startup from what should you invest, where you should invest , who are the potential customers, what is the mission of the startup , who are the competitors and what to do to make the startup a success. All will be answered by a plan so always make a plan and follow it to the T.
- Improper money handling
When it comes to business you should always make sure that the money that you put in or your investors put in is well used. It should be first made an of that who gave how much money, where it was spent what money you earned etc. it should be your first concern always. Make sure the money handling part is kept to a trusted person and always at the end of the month do a check of the money that went and came and if they add up to what is in the record.
You can never have a startup with money problems it makes you look doubtful and customers can go away.
- Know when to pivot
You can ask any entrepreneur you know, and they will tell you about the hundreds of problems that had come in their way. Not everything will go as planned. This is not a movie its reality. Be prepared for adverse situations and always know when to pivot. Know how to get away from a mistake and how to convert you loses into your gain. That is the mark of a good businessman.
YouTube as we know it didn’t start as a vide streaming app, it started as a dating app where users put small videos about themselves, but seeing how opportunity was more in the online streaming field it pivoted, and now look at it , there wont be one person who doesn’t know its name.
You should have the ability to pivot.
- Ignoring your intuition
In a before article I said how important it is to follow your gut feeling, even research has proved that it is almost always true. It helps you in making big decisions in pressured times. Always take advantage of that small voice in the back of your mind most of the times it helps you.
Ignoring your hunch can be a big mistake, as business is always about taking risks than why not trust your hunch and then take the risk who knows what difference one decision can make for your business.
- Choosing the wrong location
Every item has a place of its own. You can’t sell sweaters in a desert or shorts in the arctic. Identify your product and the place it where most of the customers that buy it are. Opening a bookshop in a city where there are no bookshops is profitable but opening a bookshop in a city where there are already 10 bookshops will be a loss. Know your target audience and open your business in a place where they are most probably going to go.
Also, investors like it when the business is close to them so they can keep an eye on it. Location is a very important part of any business.
- Thinking small
You have opened a business! You surely don’t want it to remain small, every entrepreneur dream to have a successful business. Any business you open think out of the box but not too much. There is a thin line between unique and weird try not to cross that. Whatever item you are putting up should be able to target a large amount of client, opening a unique business with only small clientele won’t help much. Don’t think small think big, you will achieve what you dream.
- Bad timing
The timing of your business launch should be appropriate. You should take in consideration the surroundings, the economy and the interest of people at that time. You cannot launch a winter collection in summer, can you? Timing is everything don’t be too early or too late in launching the business. Don’t sell umbrellas after rainy season is over.
- Hiring wrong people
Don’t be in a hurry to hire people, take your time and hire the right people. Employing the wrong people during the start can be a big problem and since you are a newbie its better to get experienced employees as they can give you advice on subjects you have idea on. Loyal and hardworking people help the business are the own who will stay even when your business is down, make sure to hire the right people for the job.
- Getting influenced-
People will always talk behind your back or to your face. There is no loss of critics who will question each decision of yours. People will always advise you it’s up to you to take what is good and leave the rest. Everyone faces criticism we should be strong enough to not get influenced by it.
It will always be scary opening a new business but with the right people by you side and the right ideas in your mind no one can stop you from climbing the ladder of success.