5 Top Blunders Every Small Business Owner Make When Starting a Business

5 Top Blunders Every Small Business Owner Make When Starting a Business

5 Top Blunders Every Small Business Owner Make When Starting a Business

Building up a successful business takes a lot of effort, along with immaculate planning and execution. There will be days of glory and also days of learning. It is essential for you to stick to your plan avoid as many commonly made mistakes as possible.

Information and knowledge gathered from other’s failures can be a great place to start your campaign on.

So that you don’t follow the same mistakes. Following are some of the blunders, business owners make while starting a new venture.

Lack of clarity

Lot of business entities in their initial stages have no clue regarding their strategy. Strategy is essential in understanding your goals and what steps you need to take to reach those. While starting a business, make sure you are clear about few things.

Having your priorities sorted out ensures you have no ambiguity during stressful situations. You also need to put in some thoughts as to how you are going to generate more business. Also have your success parameters well defined during the initial stages. Reaching those milestones will give you sense of accomplishments and also morale boost to try for the next milestone.

Trying too much

This is rather one of the most common mistakes made by owners while starting out a business. In the nascent phases, funding would be very restricted, so you would want to make the most of it. There is absolutely nothing wrong in striving for the very best, but it can be expensive in the initial days. More so if you are trying to do it all by yourself.

You can start with focusing on the basics and getting your products or services correct. Once you slowly build your organization, you can hire people with experience in specific fields to help you out. Outsourcing certain parts of your business might seem odd at first, but it usually is a cost effective and productive way.

Wrong staff on board

Having wrong people on board can be damaging for any entity, more so for a small business. While you are starting your own business, the margin of error is pretty low. Thus even the smallest of the mistakes get aggravated. There are several experts who believe it is not a great idea to start your business with friends or family. It might cause lots of ambiguity which not only leads to business related issues but also strains the relationships.

You as an owner, also need to find the right balance of people. Getting experts in specific fields can be faster and less expensive keeping long term plans in mind.

Misleading Assumptions

It is quite obvious that you strongly believe in your idea or solution. This also causes a blind spot, as several business owners believe their idea will attract audience towards them. Yes, you might have a great product, but customers need to be aware of the existence of the product to be able to purchase the same.

Instead of assuming, you can dedicate a small portion of your funding towards marketing and advertising. There are several methods with the help of which you can reach your target audience. You can use local print media, social networks, or directories. Word of mouth from your existing customers also matters a lot, so serving them well pays off.

Use your money carefully

The emotions of turning your idea into reality can be quite overwhelming. But you need to keep in mind not to exhaust all your funds. Yes, it is a good way to start with funding from personal savings or friends and family. But assuming that you would need most of the capital during the initiation phase is far from reality. You need to take into account running and operating costs in the mid to short term as well.

Thus, it is advisable to look for funding even at the earlier stages so that you do not run out of funds within the first few months.

Starting your own business can be very emotional, exhaustive and awe-inspiring. Getting carried away at such times is not new. But keeping a tab on the blunders made by others will help you skip such scenarios and rather focus on strengthening your business.

Checklist: 5 Top Mistakes Every Small Business Owner Make When Starting a Business

Checklist: 5 Top Mistakes Every Small Business Owner Make When Starting a Business

Checklist: 5 Top Mistakes Every Small Business Owner Make When Starting a Business

If you start jotting down the reasons for starting a business, you would end up with a pretty big list. With so many success stories in and around you, it is not difficult to get carried away as well. But for every business that succeeds, there are lot more that fail. There is absolutely no harm in learning from those mistakes and ensure you don’t do the same. The following are the top mistakes that small business owners make.

  • Right Partner

Selecting the right partner for your venture is extremely crucial for its success. There is nothing wrong in choosing friends and family as partners, it does come at cost. When it comes to taking tough decisions for the business, there might be lots of blurred lines. Thus, experts suggest to avoid doing business with friends and family members.

Decisions is not the only aspect of it though. It might lead to loss of income and also lower the morale levels in the work environment. These are some overheads you don’t want to be fighting off early in your business.

  • Patents and stuffs

Most of us feel, getting patent is a far-off situation, but in reality, it is not. Getting patents give you and your idea much needed immunity from anyone else claiming it to be their idea. Patents and trademarks prevent you from long and lengthy court room battles that we witness so often these days. It is not an uncommon site to see giant corporations clashing over rights.

To keep you focus on better products and improving your business, it is essential to have your ideas patented.

  • Be Careful with whom you give controls

If you are someone who owns business entity as sole proprietor or is planning to do so, be careful with your funds. Or if you are someone who deal with the money flowing in and out of the organization, it applies to you as well. Handing over the controls to the wrong person can lead to fraudulent activities. Which not only would impact you financially but also tarnish your image. No matter how good the decision of handing control to expert sounds, no one can take better care of your business than you.

  • Expose yourself to minimal risk possible

For a business to grow, funding is an essential part. Without the involvement of investors and partners, chances of you stagnating are pretty high. It is not easy to start approaching people for investments and you will come across several roadblocks. But keep in mind not to expose any sorts of risk to your capital, structure of your business, its working culture or processes followed. One of the easiest way is to reach out to leaders in your space of business. This way you get the capital that you need along with contacts and skill sets as well.

  • Waiting for the perfect product

It is quite common for people to wait it out till you get the perfect product that you had in mind before selling it. Though there is nothing wrong in that, but there are better ways to get past. The longer you wait to send the product out, the longer you will have to wait for money to start coming in. The more effective way is to get a basic version of your product ready and find buyers for the same. Finding them early will help you get feedback and thus enhance your product as well. It turns out to be quite cost effective as well.

Starting business has inherent risk along with it. But it does not make sense to continue with the mistakes others have made. Taking some time off and understanding the mistakes made by others will prove to be cost effective and brings learning along with it as well.