Starting a brand new business is a difficult process. Even people who have experience in building a business organization can have difficulties, not to mention the inexperienced ones. There are a lot of things that must be considered, and if you really want to succeed, you cannot allow to let anything slide. You must be fully devoted to your job as an entrepreneur, and learn to multitask all the time. Entrepreneurs make mistakes, all of them do, and you need to be prepared to make some yourself as well.
The difference between a business leader that succeeds and the one that fails is that a good leader learns from his or her mistakes, and gets over them, while the bad one dwells on the mistakes made. Still, you should naturally try to make as few mistakes as possible, especially those that can be devastating for your startup. This is why I’ve decided to share a couple of these “devastating” mistakes you should avoid in order to keep your business afloat.
Not having a business plan
One of the things that will almost guarantee that your startup will go under is not having a business plan. A business plan is a piece of paper that is usually 3 to 5 pages long and it includes your business goals, as well as a plan on how you will achieve those goals, with what means, how many employees, with which customers, etc.
Without a business plan, business owners easily get lost, and they lose sight of their goals and the means they will use to achieve them. Soon, their startups start to become chaotic, without a clear direction, as both the owner and the employees don’t have a clue as to where they are headed. Even worse, all of them start to grow more distant from each other, and because they are not on the same page, a lot of problems start arising.
Not having a marketing plan
A lot of new, inexperienced entrepreneurs think that they only need to focus their efforts on offering amazing products or services to consumers. I’m not saying that you shouldn’t try to deliver quality to your consumers; on the contrary, this is very important for achieving success, as people will never buy something from you again if they feel like they were served poorly.
What I’m trying to say is that this is simply not enough, as you won’t be able to reach as many people as you want with quality products or services only. It is essential that you market your business in order to attract people and let them know of the amazing things you have on offer. Find a memorable business name, focus on branding, talk about your products, etc. All of these things will help you reach your goals and create a sustainable organization.
Launching a business without market research
One of the most devastating reasons why startups go under is that, after launching, they soon realize that their market is quite small and that there is no room for them. It doesn’t matter if you think that you really have a great business idea; it still doesn’t mean that the market is ready to embrace it.
For example, touchscreen mobile phones first appeared a long time ago, in 1992, when the market simply wasn’t ready for this kind of technology, and now, 20 years later, all mobile phones have touch screens, and it’s a standard. Do the market research before you set your idea in motion, so that you know what to expect.
Losing all the money
Probably one of the most common reasons why startups fall is that they are unable to find ways to get money for their future operations, especially in cases of crowdfunded projects. There are a lot of ways entrepreneurs can make mistakes that ultimately lead to bankruptcy. Some fail to determine how much money they will need to support their business through the startup process; others don’t monitor their costs and they spend too much of their valuable money.
So there you have it, these are some of the biggest mistakes that lead to startups falling before they even get the chance to make some money. Don’t ever let them happen to you, and make sure that you acquire enough knowledge before starting your business. It is generally good to do some tests before you launch, so that you see how things will work and what needs improving.