3 Mistakes to Avoid when Starting a New Business

Don’t fall prey to these common pitfalls for startups.

When getting your startup off the ground, several steps should be taken and others should be avoided. Each year, thousands of businesses shut down for various different reasons. Some of these doors are closed as the result of one or more big mistake. Wouldn’t it be nice to be able to know which mistakes are the big ones to avoid so you do not fall down the same road as those who were plagued before you? Here are a few big mistakes to avoid when starting a business.

Ignoring the Importance of a Business Plan
Sure – you have it all in your head, so why do you have to write it down on paper? Although you have it up there, a business plan on paper will help encourage you to make sure everything happens.

Failing to Do Market Research
It is vital that you understand everything you can about your market. Market research goes a long way when it comes to the health and success of a company. Here are a few questions you should seek to answer so you have a better idea of how you fit in your market:
• How big is your market?
• Who are your main competitors?
• How long have your competitors been in the market?
• How much do your competitors charge for products or services similar to yours?
• What is the location of your primary prospects?

Failing to Understand the Needs of Your Target Audience
You may know who your audience is – but do you know what they are looking for or how to convert them from prospective clients to customers? Figure your target audience out and know them like the back of your hand.

Failing to Obtain Sufficient Funding
Make sure you know up front how much money it will take to get your business up and off the ground, then make sure you have enough money in the bank to fund it. Ensure you will have enough money not only to generate products or services but also make sure all of your payroll ducks are in a row before you start hiring employees. If you don’t, consider other options, such as bank loans or credit cards.
Although this list is not exhaustive, these are some of the biggest business killers.