Starting a business, whether providing services or selling physical products, comes with its challenges. The foundation you put determines how far you will go with your startup. Whereas some people learn the hard way, it is always good to be cautious. The following are common mistakes – considered deadly — you need to avoid when starting a business.
1. Poor market research
Simply because you make profits on a particular market setting does not guarantee you of success in another setting. You have to understand the buyer buying habits, their class, and preferences. You should tailor your products for each market.
2. Poor planning
A business plan is a must-have document for every startup. The plan should show the financial projections and management framework.
3. Focusing on success only
It is the dream of every entrepreneur to succeed, but sometimes things fail. You should put measures in place to cater for such instances. For example, a line of credit from your local bank can be very helpful in such a case.
4. Following advice blindly
It is good to have business mentors and coaches but sometimes not every piece of advice applies to your business. Pick advice that suits your market needs and type of business.
5. Failure to protect your business
It is important to have a business insurance policy to cover areas such as public liability, employer’s liability, shop cover and professional indemnity. Such covers ensure that your business continues to operate even when a misfortune occurs.
6. Poor team selection
Most people take their family members or friends as partners when starting a business. It is, however, worth noting that a business requires qualified personnel from the start.
7. Mistaking experience for expertise
Being an accountant for 20 years does not guarantee that you will run an accounting firm successfully. You have to learn; business ethics, how to attract and retain customers. How you relate to other people is also important.
8. Failure to embrace technology
Most business can now reach out to multiple customers from all over the world courtesy of the modern technology. Most people are now using social messaging apps because of their effectiveness. You should be trendy and invest in technologies that will serve you for an extended period.
9. Doing all the tasks
Most startups cannot afford to hire different people to run various departments. It is advisable to outsource technical tasks instead of trying to handle everything.
10. Following your dreams blindly
Sometimes people fail to use market data when making decisions. Do not let your emotions guide you but make decisions based on facts.
Understanding some of the costly mistakes people make puts you in a better position to plan accordingly. Your plan should be flexible to accommodate business dynamics and technological advancements.