Top mistakes start up makes
Top 5 Mistakes Start-ups Make
You have a great idea to start up your own business. Ideas are one thing, but the actual process of starting up a business is a daunting one, and for good reason. As a novice entrepreneur, you are likely to make mistakes when trying to find your footing in the business world. If you are not careful, these mistakes can be costly and may even cause your business to crumble even before it began. The goal is to learn from these mistakes before you even make them.
In order to avoid these mistakes, it could be helpful to know what these mistakes are. Here are some of the top mistakes that small businesses and start-ups make:
How many businesses are you aware of that have made it big with only one person at the helm? The reality is the more successful businesses have a couple people or a team working together to encourage each other and offer extra insight in how to make operations run more smoothly. You will also need help in order to gain investments into your business so that you raise money in order to launch the business. Starting a business all by yourself can be scary and overwhelming, and having another person or group of people at your side can be incredibly helpful getting through the difficult start-up period.
Being Your Own Accountant/Lawyer
There is a reason that lawyers and accountants need degrees and certifications/licenses in order to do their job. These types of positions require a lot of training in order to really understand what you are doing. Without this training, things can go very poorly and may even cost you your company. You need someone that knows something about numbers in order to help your budget, help you properly do your taxes, and someone that has extensive knowledge about the law in order to help you properly register your business or handle and other legal matters you may need.
Lack of Business Plan
When it comes down to it, you need a plan for anything you do. Your business needs a plan as well in order to properly lead it to your goals. Business plans are the guide that leads your business to where you want and need it to go. When you think of your business plan, there are a few questions that you need to ask yourself:
- What does your company aim to do?
- What is the target market you are looking for?
- What is the mission statement of your company?
- What businesses are your direct competitors and what makes them successful?
- How does your company intend to measure success?
The answers to these questions can help you build your business plan.
Inability to Adapt
You know what they say about the best laid plans. The reality of the matter is that a majority of the time, things do not go as they were intended. Creating a backup plan can be just as important as creating the business plan. The most successful businesses started off in another industry before realizing the importance of adaptability and making waves in another industry. Twitter, for instance, was once a podcasting platform. Being able to change your plans can make a difference between whether your business sinks or sails.
Growing to Quickly
The greatest expense of most businesses is their staff. Start-ups often misread the market and hire too many people too quickly. This can quickly drain your money in terms of maintaining your staff and even the requirement of having to purchase a larger space to hold all of your new employees. Larger places mean more rent money and other expenses. The trick is to hire slowly as you need to, otherwise you will run the risk of having to lay off employees. This can make you seem weak to investors and make you a high risk investment.
These mistakes are both avoidable and costly when not avoided. In order to be successful, working hard is half of the battle. The other half is to work with your team to move forward and avoid making these common mistakes.