(ThyBlackMan.com)There’s a lot of advice available for entrepreneurs. Many guides suggest business owners that they should avoid common business mistakes when they are all set to launch their startup. Many startup entrepreneurs harm their own business in many ways blocking their business growth.
Due to many reasons including lack of experience, poor strategy, the absence of the right mindset and terrible management skills, many startups fail within a year or two. Be sure that you don’t become one of them.
Here’s what you should never do to your startup.
1. The multiple startup dreams
A large number of entrepreneurs have to shut down their businesses in a year or two just because they couldn’t stick to one concept. Jumping from idea to idea is one of the biggest mistakes an entrepreneur can make. If you can’t focus on your core idea and think of scaling it in a right way, it’s better you go out of the business and start looking for a job.
Entrepreneurship is about commitment to an idea. 9 out of 10 startups fail because their founding members want to run multiple businesses because they feel tempted to try new business ideas that sound interesting to them. Next time when you feel the urge to start a new venture, ask yourself – “Are you satisfied with everything you did for your current business?”
2. Playing too small
Many entrepreneurs think small. They misunderstand the concept of taking small steps. They don’t even consider to plan crucial things. If you think too small, you can’t expect success in your startup. Playing small will block the growth of your business – you need to get in front of more people. You need to have multiple strategies for your business and think long-term, as well as short-term.
Unfortunately, one of the reasons that people think small is because they start a business without the acumen to plan ahead. They don’t tap into the vast array of knowledge that is available for them to learn from. For example, most owners don’t look into an effective Excel spreadsheet template collection, which can be an invaluable tool. Templates can be easily modified and taught to employees effectively, and they’re good for business owners who don’t know where to start. Since they cover such a wide range of topics and they’re scalable, they’re perfect for long- and short-term planning.
3. Living with fear
Never live with fear because it doesn’t suit you, especially if you are launching a startup. From executing your business plans to introducing your product to the market and meeting new clients, fear should never be an option in your journey.
Some entrepreneurs are afraid of raising the price because they feel that their clients will go away. To determine the pricing structure of your products and services, look at the entire cost of running your business. Think about rent, marketing materials, taxes, labor and all the utilities. You can’t charge a single client for all these things, but remember you only have 24 hours in a day and there’s a limit of work you and your team can handle. So, think accordingly and decide.
4. Launching in a bad location
Choose your business location wisely otherwise your business will suffer in the long run. If you wish to raise funds for business, open it where the money is. If you want your customers to visit your shop, choose a location they find easy to reach. Don’t focus on your convenience only because your clients, investors, and employees are the people you will need to run it successfully.
A report from the U.S. Postal Service suggests that the department receives around 38 million application forms annually requesting change-of-address. Many successful entrepreneurs saw failure when their choice of location was wrong.
If you are launching a startup, think about the availability of potential customers, employees, investors, and third-party services you may need in the long run. Once you’re done analyzing these aspects, consider the cost of running your business and your profit margin as well.
5. Not knowing the ABC of business
It may sound weird, but it is true that a majority of startup entrepreneurs doesn’t know the basics of running a business. Many business gurus tell new entrepreneurs to start with an idea, but they forget to mention that learning the basics is the first step in the process.
Having a good idea is not enough. The Finnish businessman Fredrik Idestam established Nokia in 1865 and Nokia started as a groundwood paper mill. Today it is one of the leading telecommunications and consumer electronics provider. The founders of Nokia didn’t have any plans to make smartphones, but they knew how to run a business.
Steve Jobs didn’t know where the company will go. The operating system he made was a big disappointment for him, but he knew how to market a new product to the same people, and he did it.
These are not just the five things you should not do with your startup, but these are also the lessons you should learn. Your business should thrive, so make sure avoiding these startup mistakes and learn along the way.
Staff Writer; Corey Shaw
Have any Tech Tips? News? Hit up our Tech Guru at; CoreyS@ThyBlackMan.com
