Some businesses fail, others work. That’s just how it goes. Though some businessmen would like to attribute success or failure to luck or fate, the facts show another story…
If we study the various business models and strategies being utilised by all kinds of small businesses or Startups, there are certain patterns that emerge. These patterns demonstrate clear guidelines of business dos and don’ts which can be valuable for other Startups.
Learning from others’ mistakes is a sign of maturity and intelligence. Successful entrepreneurs do it all the time.
So, here is a list 5 commonly-made mistakes by Startups to help you not make them:
1) Lack of Single-Minded Focus
A wavering intention of building a new business or even scattered ideas of what it should be, causes a rocky start. Once you have decided that you wish to launch an enterprise and know exactly what you will be offering, you need to dedicate every day towards this pursuit. Try not to take breaks or holidays in the middle of your starting business phase. You will have to devote all your attention to the venture so prepare yourself and your family for this.
Keep the motivation alive and commitment in place. Don’t under invest your time or effort.
Many also place an intent, create visualization boards and keep conjuring up images of what they wish to achieve in the future. This is a proven technique to accomplish business goals. But then act on it. Mere visualizing or fantasizing can only get you to a certain point.
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2) Not Making A Business Plan
A business plan is not only for you to see it all on paper in a logical format. It’s a good way to share your idea with investors, future employees or marketing professionals. A good business plan covers the why’s, who’s, when’s, and what in a comprehensive manner, giving you better insight into your own idea.
You can download a format for your business plan from the internet. Choose one that allows you to fill in all details about your business goals, vision, team, competition, marketing plans, investment, progress and exit plan. Don’t take short cuts with your business plan. Make it as detailed as possible.
3) Not Being Versatile & Flexible
This is where many entrepreneurs find it difficult to waver from their focus and accept changes. Sometimes, the original idea and intent doesn’t pan out. The current pandemic, is a good example though a rare one, of being versatile and adapting to the situation.
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The inability to incorporate a fresh strategy, doing things never done before or switching to technology has been the reason for the downfall of many Startups. The ones who’ve overcome difficulties have done so by adding product and service lines or changing to fresh distribution systems.
Every Startup needs a contingency plan that takes into account certain changes that may occur down the line.
4) Not Investing Enough Money
Investment is one of the most important keys to starting a business. Your Business Plan should include all the financial investment you need to launch and run it for at least 2 years without dipping into what you make. Many businessmen invest a minimal amount, and then rely on the money they get selling their product or service to fulfill other requirements such as employee salaries,, marketing plans etc. This does not work.
You need money to make money. So, plan it well and find a sound investment source with a reasonable interest rate. Refrain from overspending but don’t limit your business or brand in its initial stages due to lack of money.
5) Lack of Manpower Or External Help
A lot of failed Startups owe their loss to not having enough or well trained employees in the beginning. Trying to do everything yourself might seem economical but you will end up being overworked and not achieving a high quality in every department.
You should have professionals our outsource partners to handle your accounts, marketing, sales, distribution and customer support.
Nowadays, most activities are done online such as digital marketing, online selling and fulfillment activities. Find professionals equipped in online functions to help you promote and sell your product or service.
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Those were the 5 main aspects that need your attention. Added to these, entrepreneurs often make mistakes in profit planning, compromising on quality, hiring unskilled staff or lack of networking.
So, be careful of these trouble zones, begin with a solid business and be open to change.