For new entrepreneurs business is life. You hope to get it right and develop a strong, popular brand. You want to do it without creating unnecessary hurdles or overspending. Use these sensible survival tips…
New entrepreneurs, ideas are your strength. Use these tips to skip common, disastrous errors.
Starting a business is not always as glamorous as it looks. You need to be completely dedicated to the whole process so are continually pushing your business forward. That said, unintentional circumstances can occur that can be devastating to your business.
If you want to avoid commonly experienced entrepreneurial mistakes, then take at our list below. Here are seven colossal mistakes new entrepreneurs can avoid with the right knowledge.
Spending Too Little Money
As a new entrepreneur, money is probably going to be one of your biggest concerns. Pre-launch cash flow will probably be limited. Making money and saving money will should take priority over most everything else.
There are two mindsets when it comes to entrepreneurship, and one of them is that you need to spend money in order to make money. The other is to spend as little money as possible until a decent cash flow is established.
Both of these attitudes can be harmful to your company if approached carelessly. Spend your cash wisely but do not be afraid to invest in quality products and good people. This will help you in the long run and also help you to positively stand out from other business owners.
A strong foundation is important. Great ideas for getting started with your business should come from legal counsel and trusted business associations.
Assuming You Have No Competitors
The excitement over a cutting edge new product or service can lead a lot of entrepreneurs to think they don’t have to worry about competition. Some even think their business is so above everyone else that they are in a category all of their own.
In reality, it’s very rare that a business does not have any competitors at all. Unless you have invented a new product, there will always be someone who has market share in the niche you are operating. The wise alternative is to do your research so you can differentiate your company as much as possible.
Making Poor Hiring Decisions
When funds are tight, it can be quite tempting to cut corners with new hires. This strategy is not at all optimal because you will almost certainly end up paying for it in the long run.
Low-cost employees are generally cheap for a reason, and this is because they are much more likely to be:
Sometimes people fall into all three categories, which is costly. So it is wise to invest in your staff … remember quality over quantity.
Setting Goals That Cannot Be Reached
New entrepreneurs are sometimes so caught up by their big idea that they work without having a solid plan. The reality is you need to work toward attainable goals if you want to succeed.
Set long and short-term goals. Make them very specific too. Don’t say that you want to make a million in one year, set many reasonable goals that chip away at the big block you are striving for. This takes you from overwhelming to doable and you come out on top!
Having No Real Marketing Strategy
If you think your products are so revolutionary, then you may think you can rely on free PR without having to worry. In reality, most start-ups will need to invest with a healthy marketing budget. This can include:
- Direct mail
- Print advertising
- Online advertising
- Press releases
- Social media marketing
- Radio and television spots
If you want to help yourself here then you need to look at how your competitors are spending so you can compete or surpass. Most of all, differentiate yourself and your brand.
Accepting Thin Profit Margins
Having a healthy profit margin is critical to your success as a business. From your analytics, if you notice your profit margin is too small then you may make things more difficult going forward.
You risk losing customers by later raising prices with seemingly no grounds. So, it is vital you formulate the right pricing strategy right from the start.
Thinking You Can Do Everything Yourself Is A Mistake Too Many New Entrepreneurs Make
In the beginning of your business venture, you may think that you are the only one who can do the jobs well. After all, you are the one who knows your products or services inside and out! You may even think you are the only one who has the passion to triumph.
This is a recipe for burnout. Instead, find a few team members you can count on early on – Even if at first for only short shifts. Take your time, find smart staff who can support you, and always do thorough screening checks before hiring.