If you would like to start a business, read through the following list of business mistakes and go out of your way to prevent them.
1) Not Doing a Business Program
If I had just fifty cents for every time someone asked me “Is this a good business idea?” Over time, I’d be a rich woman. The problem is I write a business plan, I have no idea — and you also won’t, either. That is the primary purpose of a business plan. There are other very good reasons, too; visit 5 Reasons for Writing a Business Plan to discover more.
Yes, it’s time-consuming and requires a lot of research, but investing time now will save so much time and money afterward.
2) Doing What You Enjoy
“Do what you love” is a part of business advice that’s been dispersed out ad nauseam. However, for many, it is a big business mistake.
The reality is that there are a lot of people out there who love things they’re not good at. Bet you can name a few you to know off hand. The individual who thinks she is a fantastic cook but is not.
My official tips for starting a business? Do not do what you love; do what you’re good at and what people will pay you (nicely) for. It is not as tricky, but it is a whole lot more rewarding — and isn’t making a profit why you are opening a business?
3) Not Doing Any Market Research
If you do not, you have no idea if people are going to need to purchase them. You might believe you make the tastiest pierogi from all of the worlds. But will anybody else?
4) Ignoring the Competition
Ignoring the contest is just another potentially deadly business mistake. Simple question #1: If you’re selling your thingamabobs for $10.00 apiece and Vera down the road is selling her thingamabobs for $6.00 apiece, how many thingamabobs are you really going to sell?
Another component of competition you will need to understand is market equilibrium. The pie is only so large, so to speak, for every product or service. Therefore, for instance, if you would like to start a dog grooming business, there might not be any”room” left in the local region to do so on account of the number of pet grooming businesses that already exist; the marketplace is already”saturated” with this kind of business.
5) Knowing Your Own Strengths and Weaknesses
Most of us have them. Unfortunately, sometimes our strengths or weaknesses don’t fit nicely with the business model we would like to use, resulting in disastrous outcomes. For instance, if you’re not a friendly, outgoing kind of individual with great people skills, retail is not for you. It doesn’t matter how many years you have dreamed of opening that ice cream parlor or bookstore, it’s not for you.
That does not mean you can not purchase such a business or start one yourself, but also for it to succeed, you have to take note that working behind the counter isn’t something you should be doing; you’ll need to hire staff straight away.
6) Not Knowing What You Are Really Selling
Helena Rubinstein, the very first self-respecting female millionaire, didn’t become wealthy selling face cream; she became rich selling beauty. (“There are no ugly women,” she used to say, “only lazy ones”.) If your new business is going to be prosperous, you have to know what you are really selling and craft your own unique selling proposition accordingly.
7) Not Certain You Have Enough Finance
Ninety-five percent of businesses will not make money when they first open and a huge percentage of new businesses will not make significant money for years. (The exception, the five percent that makes money when they first open, is for businesses that are actually just “carry-overs”, employees who become contractors, a fairly common practice in industries such as IT.)
This means you (and your household) must have sufficient money to live on while your new business is becoming established, in addition to enough money for the business to grow and survive. Not getting the cash to do so lined up before you start your small business is a serious business error.
8) Not Investing in Marketing
Following the frequent advice “Build it and they’ll come” is just another severe business mistake. Come where? Why? Or maybe when? No one will know with no effective marketing.
Far too many smaller businesses are hesitant to spend some money on marketing, let alone a significant amount. Free marketing can be excellent — but most free marketing approaches take a large amount of time before they become effective. (Referrals and societal media marketing are examples)
Create a marketing program, set up some marketing campaigns, and keep doing it if you want your business to succeed.
My best tip? Promote your business before you start it. There’s no rule that states you’ve got to wait until your physical or virtual doors are in fact open.