Everyday people are deciding to start their own businesses buy deciding to follow their passions to launch the next Microsoft or Google. Everything gets considered, from overhead costs, where to have the business, suppliers, branding and when to take the plunge. What if there were some tips to know in advance before taking that step into the unknown, we wish we all had known some of the pitfalls that we encountered so they could have been side-stepped. Here are 3 pitfalls to avoid when starting a new venture.
1. This is a Business for Every Potential Client
Ultimately as a business grows, friends and family will catch wind and will want to take advantage of their relationship with you to use your service. As humans, we are natured to be good individuals and allow ourselves to be taken advantage of because you’re helping a loved one. Remember and stick to your guns that you run a business and the hours you put into every project is for your livelihood. Don’t avoid working with friends and family, as it’s a great way to improve your business, but be realistic in what you provide them in relation to your own well being, otherwise resentment might grow.
2. Work with People You Trust
When starting a company, sometimes it might be of interest to you to work with a friend or someone close. This can become a sticky area if you don’t know your partner; understand their weaknesses, strengths and personality prior to jumping full board. At the same time, when differences do occur, and they will, if its not working – remember you can leave the business and do something else, don’t be afraid of the unknown, after all you got into big unknown as is (starting a new business). However, at all times communicate your thoughts, feelings and expectations at all times with your partner, because it takes as much time to build a business partnership as it does a personal relationship.
3. Start with the Brand and Work Outward
Branding is the key to every successful business. Where would McDonald’s be without the Golden Arches, it’s the symbol and moniker that lasts a lifetime and in the hearts and minds of your audience. It’s never a good idea to start your business and then build the brand, think of all the people that will not understand your semi-effective original brand and the money that you would have to spend to re-establish your position with a new brand after launch. Branding is the identity of your company and should embody the morality, personality and strength to provide a foundation for your entire marketing efforts and ultimately increase the value of your offering.
These are just 3 pitfalls that should be looked at and dealt with proactively when a new startup is initiated. Do you have any pitfalls you’ve encountered and how did you deal with them? Everyone would love to know.