As a business owner, you are going to make mistakes. Some of those mistakes made may hopefully turn out to be learning experiences in which you are able to strengthen a particular area of your startup. However, not all turn out to be such. Some mistakes can actually handicap your startup permanently – these are the types of mistakes that you want to avoid at all costs. Luckily, some of the most common mistakes made by startups, which are capable of inflicting long term damage, are entirely preventable.
Starting your own business is not easy. Launching a startup – even less easy. In fact, some might even say that building a business from the ground up is downright difficult – I think most would agree. Because many entrepreneurs go into launching their startup with little to no experience in the business world, mistakes are therefore bound to happen. Regardless of how incredible an idea it might be, complex issues, such as handling finances, managing a new team, staffing and properly equipping the workspace on a budget, all will inevitably arise. It is how you prepare for troublesome scenarios and how you proactively arm your forces that will ultimately be the difference between success and failure.
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Mistakes happen in business, it does not matter if this is your first business venture or you are a serial entrepreneur, making mistakes is the name of the game when it comes to startups. What is important is to do your best to prevent as many from happening as you can. Here are seven mistakes that new businesses commonly make and how you can plan to prevent yourself and your startup from encountering them.
7. Launching Prematurely
Launching a brand (product, site or service) is a thrilling endeavor, one that most cannot hardly wait to get off the ground; but rest assured that there is much value to be had in taking your time in launching. Rushing to launch a startup can be a costly mistake, but yet is a common one. Having a solid business plan and adequately testing all products and procedures, as well as revisiting all aspects of the business is essential to preventing disaster.
6. Hiring All Wrong
It is imperative that you take your time to hire the right people for your startup. Do not ever hire someone simply because you have empty seats to fill and they were in the right place at the right time – wrong – big mistake. For every single employee that you hire you must be certain that you are hiring them because they are a perfect fit for the seat in which they will be filling – that is, in terms of both personality and skill set. Hiring irresponsibly will ultimately prove to be very expensive to your enterprise, very quickly. Many startups have failed because the people that they hired to help with launching simply were not the right people for the job. Skill, experience, and expertise even are essential factors to consider when selecting individuals to fill roles. Make sure that you do not rush the hiring process, cross your T’s and dot your I’s, so to speak. Follow procedure and properly document everything.
5. Neglecting to Use the Latest Technology
From promoting efficiency to enhancing productivity within the workplace, technological advancements are meant to be taken advantage of for the sake of success. For example, laptops might be chosen to replace traditional desktops, as they occupy less space in the office and more importantly they allow for ample mobility. Additionally, a cloud-based phone system has much more to offer businesses in terms of discounted costs, simplified operation, less space occupancy, along with a slew of benefits that range from mobility to a more professional seeming operation.
4. Being Afraid of Change
Nearly every entrepreneur that you will ever speak to will likely tell you that when it comes to launching a startup, nothing ever goes quite as planned. Flexibility and adaptability are key attributes for any entrepreneur to harbor. Whether it be changing the name of the brand or slightly adjusting your target market, being able to pivot is an important part of the startup game.
In order to be a successful entrepreneur, you need to do two things: one – always have a backup plan; and two – be flexible and open to change. Always remember that change does not equal failure. In fact, it is quite the opposite. Even the best of ideas may sometimes require a bit of tweaking.
3. Ignoring Disapproval
Criticisms are essential to becoming better. Whether it be a mentor, employee or customer criticisms take care to respect and listen to them. That does not necessarily mean acting on every single critique, but rather being open to new ideas and disapprovals of current operations.
2. Inopportune Launch Timing
With many things in life, timing is everything. Launching a startup is most certainly no exception. While launching prematurely can be a major issue, so can waiting too long. When it comes to your startup launch, there will always be factors outside of your control (i.e. natural disasters and economic hindrances) that may delay your intended timing and that is okay. You do not have to exhaust all scientific measures to calculate just the right moment to open your doors. Instead, just be aware of outside influences that may affect your launch.
1. Improper Money Handling
Of course, when it comes to launching a startup, having money is a big deal, one that requires proper handling. A very common mistake among startups is that they overspend on the forefront. This often comes in the form of over hiring. It is easy to become over-optimistic in terms of hiring, as all entrepreneurs would like to think that the second their doors open they will be swamped; but in reality this is not the case. What ends up happening is that the over-hiring actually just ends up burning through the business’ startup finances way faster than what was planned for and ultimately the firm ends up with a lot of people that are of no use to them. Instead of aggressively hiring more employees than you need, take your staffing step-by-step.
Launching a startup can and will be very challenging, but at the same time has the potential to be one of the most rewarding adventures you will ever embark on. Do not let these often preventable mistakes take away your dream of being a successful business owner. Be proactive and take measures to prevent these common pitfalls and always be aware of other potentially less serious challenges that you might incur. Stay focused and use less serious mistakes as valuable learning experiences – after all, they have much to offer in terms of internal growth.
