Approximately 50 percent of all new businesses are going to fail in the first four years of operation. In many cases, this failure is attributed to some of the most common mistakes that startup business owners make.
If you are starting a business, and want to avoid being part of this statistic, then you have to learn what the most common mistakes are. From not having a plan in place to forgetting the importance of attestation of documents, the mistakes that can occur are vast. To help you start off on the right foot, and give yourself the highest chance of success possible, keep reading.
Not creating a comprehensive business plan
Do you have an amazing idea, and all the motivation and drive needed to get your business off the ground? If so, that’s great. However, you aren’t going to get too far if you fail to create a business plan.
If you are dedicated to succeeding as your own boss, then you have to get everything in writing – first. This is the absolute only way that you can feel confident you will have a successful business launch.
When you have a business plan, it forces you to look at all the angles of your business idea. Don’t overlook how important a comprehensive business plan is for your startup.
Doing something that you love
There’s no shortage of business advice out there. One piece that is heard time and time again is that you need to try to do something that you love.
Unfortunately, the fact is there are more than a few people “out there” who are in love with things they aren’t really good at doing. Chances are you can think of a few right now. Someone who thinks they can fix virtually anything – but really can’t. A person who believes they are a great cook – but aren’t.
The bottom line is that you can’t simply focus on doing something that you love. Instead, find something that you are actually good at, and that someone else is going to pay you for. While this isn’t quite as catchy, it’s going to result in higher profits.
Failing to do any type of market research first
There are more and more people who try to start their business without doing any type of market research first. In the long run, they wind up being devastated when the business they have tried to start is unsuccessful.
It’s crucial that you take the time to test your service or products before you actually begin your business. If you fail to do this, then you aren’t going to know if anyone is even going to be interested in what you are offering.
Not paying attention to your competition
Another fatal mistake you can make when starting a business is ignoring your competition.
Consider this – if you are planning to sell a certain item for $8.00 each, but Bob just around the corner sells the same item for just $5.00 each, who do you think is going to sell more of this item? It’s even worse if Bob has the item that tastes, feels, smells or looks better than the one you have. You have to consider your competition – failure to do this is going to lead to your failure.
If you want to give your new business the best possible chance of success, then you have to avoid the most common mistakes that are leading to failure. When you know what these are, you are already a step ahead of so many other business owners.