Are you a rising entrepreneur with a hunger for success?
If you're ready to tackle the challenging task of starting a business, you're not alone. According to the Small Business Association (SBA), over 625,000 new businesses launch every year.
Unfortunately, around 90% of those businesses fail.
If you don't want to become another statistic, keep reading!
In this guide, we'll share 5 business startup mistakes so you can avoid them and beat the odds.
Ambition and passion are both positive qualities to have when starting a business, but you also need focus and a clear vision for the future.
As excited as you are to get the ball rolling, don't skip the planning and preparation phase.
Remember, business ownership is a marathon, not a sprint. You need a solid business plan that covers both the expected and unexpected.
You'll refer back to this solid foundation throughout your journey.
On the flip side, don't overthink it!
Back your plans with actions that encourage growth. Too much hesitation or doubt will leave you defeated before you've even left the ground.
Depending on the type of business you're starting, you'll need to set a value for the products and services you're selling. Be sure to sit down and crunch numbers before launching.
Make sure your margins make sense and that your business structure will turn a profit. Avoid cutting it too close and plan for additional expenses along the way.
Too often a fear of failure or lack of confidence causes startup owners to under-price their products or services. There's enough competition out there without you working against yourself.
But, confidence in your product or service isn't enough. You need to believe in yourself and have the ability to sell yourself and your brand to investors and consumers.
This is your business idea. Own it, promote it, and take it to the next level.
We get it. Your business is your baby.
You've likely put in countless hours, years of research, and your hard-earned income to get it off the ground. It can be hard to accept help or let anyone else in.
While plenty of entrepreneurs have succeeded on their own, most have had a little help along the way.
First, you need to decide if this will be a solo venture or if you plan to include partners, co-founders, and investors. There are pros and cons to both business models.
If you're short on funding, co-founders and investors are a great way to get the resources you need to hit the ground running. On the other hand, the adage, "Too many cooks in the kitchen spoil the pot," does hold some truth.
Whichever path you follow, make sure the expectations, percentages, and all other particulars are clearly mapped out before moving forward.
For small business owners that decide to go it alone, you can still elicit the help and expertise of a mentor, financial planner, and other industry experts.
One of the biggest startup mistakes is letting your pride or ego cloud your judgment and interfere with your long-term goals.
Before you can become a successful business owner you need to have a clear picture of who your target audience is. This means creating a customer persona.
You can't craft an effective marketing plan until you know who you're advertising to.
Ask yourself what your ideal customer looks like and how you can reach them.
Are they active on social media or are they more likely to open an email? Is it worth investing in paper advertisements and mailers?
When you figure out who your target audience is and where to focus your marketing efforts, you can get the most out of your advertising campaign.
You'll also avoid another business startup mistake of focusing your energy on the wrong things.
While overspending on your startup could leave you in a financial hole, underspending can also set you up for failure.
Don't cut corners when following your dreams but be smart about your spending.
Setting a business budget can prevent you from getting overzealous when you're first starting out. Some young and eager entrepreneurs believe they need the best of everything from the get-go, including high-end equipment and the most expensive marketing plan and software.
Truth be told, money spent on the right things and in the right places will benefit your bottom line way more than blindly overspending.
With a little research, you can find equally reliable materials and resources to help launch your business without putting you into debt.
Another common business startup mistake is being too frugal. You need to make a good first impression in your niche market. This reputation will stick with you throughout your career.
That last thing you want is for industry professionals or consumers to view you and your brand as cheap or unreliable.
The trick is to spend enough to offer a quality product at competitive prices but not so much that your entire life savings are tied-up in your new business venture.
Congratulations! You've decided to be your own boss and start a business.
Now that you know the most common business startup mistakes to avoid, you can embark on your journey to success.
With a clear budget, goals, and brand identity, the sky is the limit. It's time to take control of your life, your career, and your income.
At Hectic™, we can help manage everything from new and existing clients to projects, invoices, and contracts.
Click here to learn more about our affordable pricing options and how to incorporate these beneficial services into your startup budget.