Mistakes to Avoid while Starting a Business or Startup

Mistakes to Avoid while Starting a Business or Startup

Mistakes to Avoid while Starting a Business or Startup

Starting a new venture is exciting because dedication and sheer will added to make it run smoothly by the entrepreneur. Many businesses start off aggressively, but within a short span, they fail to reach their goals and eventually either shut down or run on losses.

Startups fall prey to common mistakes which if avoided could do wonders. There is no trick or formula to success, and every business grows at its own pace. However, if they could avoid these mistakes, then their growth is unstoppable.

Neglecting the Competition

Keeping the competition in the dark is a potential mistake that new businesses make. Hypothetically speaking consider selling a basket for $8 apiece, while the competitor down the lane is selling it for $4 per piece which is of better quality, it is strong, and the shape is adjustable. How many baskets will you be able to sell?

For that there are ways you can keep a check on competitors moves to do a competitor analyses. Market saturation needs to be continuously kept an eye on because there are multiple competitors already in the market that are doing well. Launching the same product will do you no good.

For example, if you want to open a hair salon, it's possible there may not be much room left for you to survive as plenty other hair salons are already operating and have a good customer base.

Not Paying Attention to Inventory

A common constraint in the startups arises when they deal in retail, wholesale or manufacturing. The chances of having inventory to sell and keep buffer stocks is a must. Calculating how much inventory is required can be a tough cookie to crack for every startup business because the company is still fragile.

If you have too much inventory, then you risk damage or add additional storage costs, and if you have too little stocks, then the fast pacing customer demand will not be met. This happens for seasonal businesses where the inventory and its size varies throughout the year.

Marketers claim an average, 17-25% budget to be utilized on your inventory considering the market penetration of the service and product. While starting your newly thought processed business, it's better to think for a more significant number of stocks because you wouldn't want to run dry in the initial few weeks of your business.

This is because as a business you should not turn down a customer with a statement of “not having the product.” Keep a check on the inventory and double check warehouse inventory to ensure you have enough stock to supply.

Confusing management with leadership

Leadership should never be mixed or confused with management. A leader works as an inspirational authority that inspires others, looks for that vision, makes and secure connections to fund the company for a smooth and upper shift growth. Mostly, these qualities are not present in a successful manager, and it's okay if it isn't.

When a company is in its initial phase, the leader may be able to look after most of the things (functioning roles) while being selfless. But as time proceeds, it would be a fatal move to consider looking at all the tasks when the company expands.

To achieve a clear long term vision, leaders need to start delegating tasks to managers who can manage and execute better.

Zero Spending on Marketing

No matter how unique your product is, it won’t sell unless you market it. This particular statement should be memorized because a common mistake follows as “Create it, and they shall follow.” This is a blunder because the basic ‘5 W’s and 1 H’ is lacking. A broader audience cannot be targeted without effective marketing which startups remove from their ‘to do list.’

Considering the financial limits, free marketing can be selected by a small business where without spending much, desired results can be achieved, but gradually! The mistake which is repeated is not having a marketing plan. The campaigns lack focus, and the company goes with the flow without any direction.

Market your business wisely as there is no thumb rule for marketing. Focus on your target market and focus your marketing on them before you expand.

Lack of Digital Marketing Consideration

Sooner or later any small business has to expand, and when it does its online appearance is pivotal. Requiring a website is not always important considering the type of product or service being sold. Individual owners can start by using mainstream social media platforms as well, such as Facebook and Linked in.

But that's not it, lack of social presence would mean zero collaborations, lead generation, search engine optimization (SEO) and much more would be missing that are extremely important for online presence. However as soon as a company goes online, the chances of cyber frauds and online hacking become a bigger threat than the competition. For that startups should smartly deal with it using online security tools like vpn to make sure that their online activities and presence is always protected.

If nothing else, make sure that the business is listed on multiple online directories, especially on Google maps so that the location becomes available and accessible to all. That along with social media plans to ensure that your targeted audience is being regularly updated about the company’s presence.

Road to Success - Avoid Mistakes

There is no learning without mistakes, as mistakes aid in teaching a valuable lesson in business. At times learning from experience is better than learning the hard way by making mistakes. Startups can avoid failures if they avoid these mistakes.