New Business Startup – 5 Mistakes You Definitely Want To Avoid
Have a new business startup? Then this post is for you! Here are 5 new business startup mistakes that you definitely want to avoid.
5 Mistakes You Ideally Need To Avoid When Starting a Business
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As a blogger who works from home and earns more than I ever did in my old day job as a marketing manager, I am all for women starting their own businesses.
In fact, launching your own business may be the most liberating and smart money decision you ever make.
However that being said, there are a few common mistakes that many beginner entrepreneurs and new startup businesses make when getting their business off the ground.
Building a business from scratch can be tough and of course mistakes will be made – mistakes are a part of life – but that doesn’t mean that you can’t minimize your chances of avoiding common errors.
It may feel like the odds are stacked against you at the start, but these odds can definitely be overcome.
One way to boost the odds of being successful is to simply avoid making the mistakes that have already been made by other entrepreneurs.
This is something I have always consciously tried to do.
You can learn a lot from studying those that came before you.
That’s what smart business owners do.
I have always loved to study the path of those who have walked the road before me.
Where did they fall?
What hurdles did they face and how were they overcome?
How long did it take for that road to become smooth rather than rocky for my peers?
Here are 5 common business mistakes made by aspiring entrepreneurs and what you can do to avoid them:
NEW BUSINESS STARTUP MISTAKE
1 – Not having a good enough reason to start the business in the first place.
Starting a business is challenging, and there are many convenient excuses to pull the plug.
You’ll want to have a big enough reason “why” to overcome your many “buts.”
For example, “I want to do _______ BUT I am not sure how.”
When you have a strong enough WHY – which is absolutely essential in both life and business – the BUT part doesn’t matter.
Your WHY is what will encourage you to kick every BUT right out of the way.
So ask yourself WHY you want to start a business?
Once you have that first answer, ask yourself again WHY is that important?
And then again, WHY is that second response important?
Keep going until you come to the very raw core where your true purpose in life lies.
This is where you will find your passion and desire and that one true WHY will be the thing that drives you to succeed.
- There are many challenges when starting a business.
- Always keep your WHY in the forefront of your mind. It will need to be clear and exciting to you.
- This will pull you through the inevitable challenges that pop up along the way.
NEW BUSINESS STARTUP MISTAKE
2 – Making the assumption that the banks will be happy to lend money to you.
If you have a new business that requires money to fund it then you need to know in advance that new businesses have a less than stellar rate of success.
This is why banks can be reluctant to fund new business ventures.
- Many banks make it a point to specialize in loaning money to self-employed professionals. If you’re a doctor, dentist, or accountant, you might be in luck.
- In the current economic conditions, the only way to reliably get a loan is to put up collateral. Just remember that the bank will take your collateral if you’re unable to pay back the loan.
- The other option might be to finance the business through personal savings, credit cards, selling some assets, or taking out a home equity line of credit.
- But please don’t let this stop you from starting a business you are dreaming of starting. Where there is a will, there is always a way!
- Most work-from-home start-ups actually require minimal investment. That’s why I was so excited to start a blog which required next to nothing for me to set up yet produced a full-time income for me within nine months.
Only you can decide if self-financing or taking on additional debt makes sense.
NEW BUSINESS STARTUP MISTAKE
3 – Making the assumption that customers will automatically find you and start buying your product or service.
Oh sigh! I know this feeling well.
Back in 2000, I started my first business – a life-coaching practice – and I remember being stung with the fact that clients weren’t lining up outside my door to work with me.
Reason why they weren’t lining up: they didn’t even know I existed!
In the vast majority of cases, you’ll have to market and actively sell what you’re offering. New clients and customers will not just magically fall into your lap!
Some things to note:
- People are already buying what you’re offering from someone else.
- You’ll need to give them a solid reason to buy from you instead.
- What makes you or your product more special?
- What is it about your business that sets you apart from the rest?
- Be willing and prepared to put you and your new business out there and to toot your own horn.
NEW BUSINESS STARTUP MISTAKE
4 – Not having a clear long term goal.
You should start with the end in mind.
What is the ultimate goal you have for your business?
Is it to sell your business once it is set up and capitalize on what you’ve built?
Is it to expand?
Where do you see the business going in the next five years?
Start with the end in mind and plan accordingly.
NEW BUSINESS STARTUP MISTAKE
5 – Not getting support before you get started.
Let me put my hand up and say yes, it’s true.
You will definitely need support from the people around you when you start your business, even if you are a one-woman show like I am.
For some wannabe entrepreneurs, it takes a while to understand that everyone around you will be affected by your quest to make your business successful.
Ensure you have the support you need from your family and partner before you get started.
- Vacations might have to be skipped for a while.
- You’ll probably have to work late on a regular basis at first.
- Sometimes dinner may be a toasted sandwich, rather than a fancy three-course meal.
- Starting a new business might require 60 hours/week or more when you’re starting out.
- Even though the hope is that this time investment pays off in the future, it can sometimes suck when you are in the trenches right at the beginning.
All in all, starting your own business and getting it off the ground can be quite challenging.
But hey, IT IS SO WORTH IT.
If you are committed to your new business venture, the rewards can be incredible.
With proper planning and foresight, you can earn far more money than you ever dreamed (and ideally spend less time working than you would at a conventional job.) That’s the ultimate goal!
But I won’t pretend – that success isn’t always easy to achieve.
One of the best ways to boost the odds in your favor is to avoid these common mistakes made by many other entrepreneurs.
Remember: It’s all about:
1) KNOWING YOUR WHY
2) WORKING OUT HOW YOU WILL FUND YOUR STARTUP
3) BE WILLING TO PROMOTE YOUR BUSINESS
4) HAVING A CLEAR END GOAL and
5) GETTING THE SUPPORT YOU NEED.
Take care of these common beginner new business startup mistakes and you will maximize your chances for success.
