The essential part of initiating a start-up business is having a plan then having the utmost discipline to act on it. Being part of the start-up is not always fanciful and often needs simply giving yourself to the process.
Eric Ries, the author of the book titled, the lean start-up, said that he has learned from both his own successes and failures and those of many others that it is boring stuff that matters the most. Start-up success is not a consequence of good genes or being in the right place at the right time. Start-up success can be engineered by the following accurate and suitable process that means it can be learned that means it can be taught.
Taking steps by which, it can be avoided is part of the process for the new entrepreneurs. Here are the seven mistakes that one should avoid when initiating a new business.
Spending too much initially and not spending much
As an entrepreneur, money is going to be your biggest bone of contention. Before the launch the business, there are some compliance costs involved as in to register LLP company in India or opting for a private company. But then you will realize that the cash flow is likely to be close to nil, hence making and saving money would generally take priority over everything else.
You would see two mindsets among the entrepreneurs; either you have to spend bucks to make bucks as money begets money, or you will spend less until you have some decent and steady cash flow.
Both of these attitudes at their extreme level can be detrimental. Spend your start-up cash wisely initially, but you should never hesitate to invest in good people and quality products as it would be helpful to you in the long run.
Thinking that you will have no direct rivals
The eagerness to launch the new business or product can often lead new entrepreneurs to think that they really have no direct rivals or that their product is of top-notch quality than those of its competitors that they are in a category of its own. But in reality, it is infrequent to have no direct rivals. Unless you have created an entirely new product, there would be someone who has already market share in your niche. Do your own research in finding out what these companies are and how you can distinguish your business from theirs.
Making a recruiting decision based on cost
It is closely glued to number one, but it is so crucial it deserves to be stated individually. When the funds are tight, it is captivating to skimp on the cost of the new recruiters. Nonetheless, the problem with this strategy is that you would end up paying in the long run.
Employees and consultants with low-cost are generally low-cost for a reason as they are more likely to be inexperienced, unreliable and unskilled.
Not establishing attainable goals
New entrepreneurs can be so delighted by their big idea, and they work without a concrete plan. But the reality is that you should establish attainable and realistic goals to succeed.
Make a point of establishing both short-term and long-term goals for your start-up, and ensure that they are specific and precise. Do not just say you want to make one million in the first year; see the attainable goal and then choose what particular steps you will have to take to reach that goal.
Thinking that you alone can do it all yourself
Initially, it is not uncommon to think that no one can do the job as you can do it. You know everything about your products, and you would be the only one who has the passion for making the business succeed.
But it is not enough, and it can hamper the progress of your business. This is why you need to identify areas to outsource your business activities and have an experienced, knowledgeable consultant or mentor by you side. Such decisions can offer you a much-needed objective perspective on your business and market.
Thinking about the marketing
There is a common belief that if you build it, they will come, among the new entrepreneurs. They think that their products are exceptional and revolutionary that they can just depend on free PR and word of mouth.
But in reality, many of the start-ups would require to invest handsomely in marketing. It might include SEO, PR, content marketing, and paid advertising. Take a glance at where your rivals are spending and investing their marketing money, and ask yourself how you can compete and distinguish yourself from them in the market.
Having meagre margins.
Having a reasonable profit margin can be the key to your success. Having a low margin would make your life more challenging, and your customers likely will not be thrilled when you require to raise your prices later on.
Consider your production and operation costs carefully, and decide how much flexibility is there. Can you minimalize these costs in the future if the situation arises? If not, determine the higher profit margin now to accommodate these costs.
As the editor of the blog, She curate insightful content that sparks curiosity and fosters learning. With a passion for storytelling and a keen eye for detail, she strive to bring diverse perspectives and engaging narratives to readers, ensuring every piece informs, inspires, and enriches.
