Whether you’ve had experience in running a company before or you’re about to dip your toes into the business world, everyone makes mistakes. When getting your idea off the ground, it’s likely that you will run into obstacles along the way, however, it’s how you address and handle the situation that will set you apart from those who fall at the first hurdle.
If you have an idea that you can’t wait to share with the world, here are some of the most common mistakes that entrepreneurs make, which will keep your operation running smoothly.
Don’t Be Afraid of Failure
One of the biggest errors that entrepreneurs make is being afraid of failure. When launching a startup, it’s normal to feel anxious and overwhelmed, especially when you’re fine-tuning your operation. Having the drive and determination to succeed is key, so turning your fear into a positive can only beneficial for the future of your company. If you come up against a barrier, it’s important that you pick yourself up and stay motivated to achieve great success.
From the very start, it’s crucial that you stay organised and in control when launching a business. It’s normal to have lots of things happening simultaneously, so keeping track of every aspect of your company is key. If you’re going it alone, the process of getting your business off the ground can take its toll, so it’s important that you create a daily task list that can add structure and clarity to your operation. A business plan should be devised from the beginning, which will outline your objectives and goals, mission statement, and who your target audience is. The more planning and preparation you do, the less chance you have of failure.
Don’t Misinterpret Your Market
Another big mistake that many business owners make is misinterpreting their market. When you create products and services for your audience, it’s important that you know your demographic inside out. Many entrepreneurs underestimate or overestimate costs, as well as poorly gauging the demand, which can make it hard to keep up. The last thing you want is for your business to end before it even starts, so conducting market research from the beginning will help you discover which consumers are interested in your brand.
Failing to Delegate
If you plan to employ others in your startup, knowing your employee’s strengths and weaknesses is key when it comes to delegating tasks. When working on projects and tasks, clients and suppliers expect excellent results, so if you aren’t handing tasks out to the right people, you can’t expect the finished product to be bulletproof. Many founders in the early stages aren’t great at delegating work to their employees. As a business owner, you may try and do everything yourself to keep costs down, however, working yourself into the ground will hinder your productivity and be potentially fatal to your business’s success. Having other people in your company to work alongside you can take the weight off your shoulders and give you the opportunity to focus on other important areas of your business. Showing that you trust your team can go a long way and help them feel more valued.
Don’t Hire Too Soon
Many new business owners make the mistake of hiring employees too soon. Whether they hire full-timers when part-time employees may make more sense or hiring someone when a subcontractor could have performed the same function or job, it’s best to start off with hiring part-timers. Understandably, you will want employees who complement your business and propel it to new heights, so it’s important that you know what to look out for when hiring candidates. The hiring process can be long and tiresome, so make sure that you thoroughly investigate each candidate’s background. Doing so will help you learn more about what skills and knowledge they can bring to your startup. You may want to consider having someone you trust alongside you when conducting interviews, so you can get a second opinion on whether the candidate is right for your business.
Don’t Avoid Contracts
When setting up a new business, another blunder that many business owners and entrepreneurs make is failing to implement contracts. Regardless of how good relationships with your employees may be, everything can come crashing down to a screeching halt if agreements and systems aren’t put in place. When hiring people for your business, they will want to have a contract that outlines what is required of them and to provide job security. As a business owner, the last thing you want is a high staff turnover, so making sure your team are covered is important.
Don’t Give Yourself the Wrong Salary
Whether you’re paying yourself too much or too little, both are another mistake that many startup owners make. It tends to be easier to establish the salary for a new hire over determining a partner or owner’s pay. It’s advisable to pay yourself a percentage of revenue that you receive. Whichever route you go down, it’s vital that you stay in control of your business finances. It can be easy for things to slide out of control, so to avoid getting into debt, being realistic and having the funds behind you to pay you and your team is paramount.
Don’t Undervalue Education
For your startup to flourish and expand, it’s important that you know what you’re doing. Even if you are confident with your idea, 50% of new businesses fail within their first year of operation. Instead of falling into that statistic, gaining key skills and experience can help you run a successful company. Many business owners decide to go back into education and obtain an MBA degree from providers like Aston University.
Throughout your MBA degree, you will learn a range of transferable skills, such as how to communicate effectively and time management skills. You can study for an MBA degree online, which means you can learn at your own pace.
Waiting Too Long to Launch
Another big mistake that you need to avoid as an entrepreneur is waiting too long to launch. It can be easy to get wrapped up in the planning side of things and let the scope of what you are creating get out of hand. While it may be daunting to put yourself out there and showcase your products with the world, the longer you spend in the planning stage, the less revenue you will make. Even if you aren’t 100% with what you have to offer, it’s best to get yourself out there and learn from your mistakes. In many cases, you will need to do a trial and error to establish what is appealing to consumers, and what needs to be worked on.
When launching a new business, getting everything together and ready for your audience can take its toll on your health and wellbeing. The last thing you want is to lose focus and drive, otherwise, your idea will forever stay a pipe dream. It’s important that you’re passionate about your business and persevere past each obstacle. With so many decisions to make, you will need to keep moving quickly and have a clear focus in mind. As a business owner, you may be the type to work around the clock to get things done, however, it’s likely that you will run out of steam far quicker. Taking regular breaks and believing in yourself is what will keep you motivated and determined for success.
Getting Distracted by Feedback
No matter how much hard work, money, and time you put into your startup, there will always be consumers who aren’t completely satisfied with your offerings. While it can be hard to take feedback on board, there is always room for improvement, regardless of what type of startup you run. The opinions and feelings of your audience matter, so rather than taking things personally, try and keep motivated.
Jumping to Decisions
Whether it’s deciding on a name for your business, the structure, who your audience is, or what types of products and services you plan to sell, there are tons of decisions that will be down to you. If you have tons of work to sift through, it can be all too easy to say yes or no without giving it a second thought. No matter how big or small the decision is, set aside time to give honest and educated decisions, so you can be confident that you’ve made the right choice.
If you’re about to launch your first startup, the whole process can be overwhelming. Spreading brand awareness and making a name for yourself is easier said than done, so it’s important that you avoid all the mistakes listed above. No matter what kind of business you plan to run, it’s likely that you will have many others in the same boat who are fighting for the same custom. Staying driven, confident in your abilities, and gaining the right skills and credentials will help increase the chances of your startup being a success.