Starting your own business is perhaps one of the most demanding, difficult and challenging endeavours that anyone can undertake. With most other new ventures, you are allowed to make a mistakes, learn from them and start again. Unfortunately, you cannot re-start your new business; early mistakes could cost you a considerable amount of time and money. It is imperative you do some research on how to start a business before you do.
Here are some common mistakes that often rear their ugly heads in a new business. Make sure you avoid them to ensure long-term success…
Not Understanding Technology
While this may not apply to everyone starting a business, the majority of new ventures will be heavily involved with modern technology. Let’s face it, whether you get on with computers or not, you will more than likely be dealing with them on day-to-day basis.
Firstly, ensure that you have reliable technology around you, from astutely functioning computers, to high performing broadband. Believe it or not, some people try to run an online business with intermittent internet service. This will not only cost time but could also have a serious financial impact at a time when money needs to be flowing into the company.
You must also know the finer details of any software programs you use. There is some extremely complex technology in frequent use nowadays that, to the uneducated user, looks practically impossible to get to grips with. Spend time on this software to familiarize yourself with it workings. There are also plenty of online courses and videos that will enable to you to use any related software to the best of its ability.
With the amount of paperwork that you will inevitably go through when starting a new business, it is essential that you keep everything organised to ensure that any important documents are not misplaced. While filing may seem like an arduous task, it is actually a key part of guaranteeing the efficacy of your business. After all, when the financial year comes to an end and you have completely forgotten to log your spending, you could be in serious trouble.
Rushing to Perfection
Honestly, if you genuinely believe that immediate success comes to every new business, then perhaps you shouldn’t be starting one of you own. It takes plenty of hard work, dedication and a scoop of good luck. However, it also takes plenty of time. Don’t be down heartened if your business has failed to fly off the ground after three months. According to Bloomberg. 80% of new business will fail after 18 months. As long as you are not haemorrhaging cash and are balancing the books, you will be fine. Review everything after 18 months – if you are running successfully at this point, you are one of the 20% who have succeeded.
Choosing the Wrong Partners
One of the most frustrating downsides to starting your own business is the ruthlessness that you may have to adopt when it comes to employment, or financial backers. When you are standing on your own two feet in a business, it can often be far too easy to give jobs to your closest friends or family members. However, if they are not right for the role they are fulfilling and your finances echo this, you will have to be hardened and remove them for the situation. Not only could it affect your business, it could also hurt your personal relationships.
Instead, find employees who are willing to work, care about your company and have the skill set to get good results. If you are lucky, your friends may be perfect for the roles anyway!
Failing to Conduct Industry Research
This is simply essential. Before you even think about entering your chosen industry as a new business, you must conduct some seriously detailed research on possible competitors and potential clients. Going into an industry blind is a fatal mistake and will ensure that your business fails monumentally quickly.
Simply spend a few days online, searching your industry. What do their websites look like? How big is their online client base? Do they have a social media presence? Have they worked on their search engine optimization? Do they deal nationally or internationally? Do they have paid office space? How many potential competitors are there?
Answer all of these questions, write down your findings and plan the approach that your business will take in light of this research. This will ensure that you find your place in a potentially saturated market as well as gaining an insight into the current outlook of the industry itself.
We’d like to thank Informi for this insight.