Managing business, especially for new entrepreneurs is not a painless job. There are a lot of things to decide and consider. Such pressures often leave you in bleak and make you unable to make the right decisions. It will affect your success chance.
Here are the 10 common mistakes that new entrepreneurs should avoid when starting their business.
1. Skipping the planning stage
Yes, planning is boring, but it’s not like you have an option. You should transform your brilliant ideas into actionable plans to succeed.
Do not ever think that you can start a business without a business, financial, and marketing plan. Try to create long-term and short-term planning. Also, make sure that they are realistic and specific.
2. Not knowing the target market
One of the key elements that affect our success rate is how terrific we are in understanding our ideal market. There is no point in arranging the marketing budget if you don’t know who to offer.
You can’t sell to everyone. So, do market research beforehand to identify what kind of people you’d like to reach. Find out their buying behavior to predict how they’re going to react to your campaigns.
3. Choosing the wrong partner
If you start a small-scale business, it’s advised for you to manage your business alone. But, of course, you’re going to need strategic planning to do that.
However, if you feel the responsibility on your hand is burdensome and you need a partner, be very careful about choosing the person. Make sure that the partners or co-founder will stick with you. They should be wise and supportive of your ideas.
4. Believing that there are no direct competitors
It’s exciting to discover a new product, but don’t let it blind you, dear new entrepreneurs. You might think that you don’t have direct competitors and you have invented the greatest products amongst all. Well, what’s too good to be true is almost always unrealistic. Very rare businesses don’t have direct competitors.
Instead of pushing yourself too hard in making new inventions, it’s better you study the value of your products. Discover what distinguishes you from other entrepreneurs.
5. Low margins
Healthy margins are crucial. It will be hard for your business to grow if you have set a low margin from the beginning. Your customers will complain if you rise the price suddenly
Visit your operational cost and see how flexible you can be. Can you cut the cost if you must, under certain circumstances? Is the answer no? Looks like you need a higher margin.
Related article: Year-End Accounting Tips for Healthy Business Finances
6. Doing it all alone
At first, you think no one can understand what you’re doing. It’s only you who understands the products and it’s you who have the passion.
That sounds like you’re about to burnout. Burnout equals low productivity. To avoid that, find a mentor or a consultant that will help you do the thinking. You can consider hiring employees to help you run the business as well.
7. Focusing on growth only
Your business won’t grow without a dynamic strategy. So, as a new businessman, you should think from many directions before producing a decision.
However, if you’re too focused on growing your business, but not the quality, your business will not go far. Balancing both business growth and product or service quality is a key to success.
8. Hoping that customers will come by themselves
Do you expect customers will come at you without you even trying? Meanwhile, your competitors are executing massive promotion strategy. Yes, it’s not how business works. If you want to expand your market, you should be where your potential customers are.
9. Underestimating technologies
Regardless of your business industry, you should invest in technology. There is a lot of software that you can choose from Smart Business Software to automate business processes, to various marketing software to track your engagement. Modular software that is able to be integrated is the best option for you. It will streamline your business.
10. Taking too long to start
Although research and planning are important, don’t get stuck there. If you think it’s adequate, start the business. You will learn and earn feedback as time passes.
In the beginning, it doesn’t have to be perfect. If you wait too long, you will lose the right time to target your audience. So, start doing the promotions and experiences will be your guidance.
The bottom line
No new entrepreneurs start their business perfectly. Making mistakes is normal. What we emphasize is how to detect it and solve it before it affects our decisions. If you can prove yourself to be resilient and never see mistakes as failures, you have a bright future!