If you want to start a business, read through the following list of business mistakes and go out of your way to prevent them.
1) Not performing a Business Program
If I had even just fifty cents for every time someone asked me “Is this a good business idea? The issue is unless I write a business plan, I have no idea — and you also won’t, either. That’s the main aim of a business plan. There are other very good reasons, too; visit 5 Reasons For Writing a Business Plan to learn more.
Yes, it’s time-consuming and demands a lot of research, but investing time now will save you so much money and time later.
2) Doing What You Love
“Do what you love” is a piece of business advice that has been doled out ad nauseam. However, for many, it is a significant business error.
The simple truth is that there are a whole lot of people around who love things they are bad at. Bet you can name a few one to know off hand. The person who thinks she is a fantastic cook — but isn’t. The individual who believes he can fix pretty well anything — but can not. My official tips for starting a business? Do not do what you love; do what you are good at and what people will pay you (nicely) for. It is not as tricky, but it’s a whole lot more profitable — and is not making a profit the reason you are opening a business?
3) Not Doing Any Market Research
I find rising numbers of people starting businesses without needing to do some of the — then being heartbroken when their new business, which they have invested so much time and money at all, collapses. Test your products and support first before you begin a business. If you do not, you have no idea if people are going to want to purchase them. You might believe you make the tastiest pierogi from all over the world. But will anyone else?
4) Ignoring the Competition
Ignoring the competition is another potentially deadly business error. Straightforward question #1: If you are selling your thingamabobs for $10.00 apiece and Vera down the street is selling her thingamabobs for $6.00 apiece, how many thingamabobs are you really likely to sell?
Another aspect of competition you need to understand is market equilibrium. The pie is only so large, so to speak, for every service or product. So, for example, if you want to start a dog grooming business, there might not be any”room” left in the local region to do so on account of the amount of dog grooming businesses that already exist; the market is currently”saturated” with this sort of business.
5) Not Serious into Examining 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 want to use, resulting in disastrous results. By way of example, if you are not a friendly, outgoing type of person 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 this to succeed, you need to be aware that operating behind the counter is not something you should be doing; you will need to hire staff straight away.
6) Not Knowing What You Are Actually Selling
Helena Rubinstein, the first self-respecting female millionaire, didn’t become wealthy selling face cream; she became rich selling attractiveness. (“There are no ugly women,” she was able to say, “only lazy ones”.) If your new business is going to be prosperous, you need to understand what you’re actually selling and craft your own distinctive selling proposition accordingly.
7) Not certainly Sure You Have Enough Resources
Ninety-five percent of businesses will not earn money when they open and a large proportion of new businesses will not make significant cash for ages. (The exclusion, the five percent that makes money when they open, is for businesses which are actually just”carry-overs”, employees who become builders, a rather common practice in businesses such as IT.)
Meaning you (and your household ) have to have sufficient money to live on while your new business is getting established, as well as enough money for the business to survive and grow. Not getting the money to do so lined up before you start your small business is a serious business mistake.
8) Not Investing in Marketing
Following the frequent advice “Build it and they’ll come” is just another serious business error. Come where? Why? Or maybe when?
Far too many small businesses are reluctant to spend some money on marketing, let alone a significant amount. Free marketing can be excellent — but most free marketing approaches take a large quantity of time before they become effective.
Create a marketing program, put up some marketing campaigns, and continue doing it if you want your business to be successful.
My best tip? Promote your business before you open it. No rule says you have to wait until your physical or virtual doors are actually open.