Starting a business is never easy, but you also can’t afford to make certain mistakes that could hinder the launch or overall success of your company. Unfortunately, startups are often launched by people with no business background, and mistakes often come in troves. Regardless of your background or your business startup idea, here are five mistakes your startup simply cannot afford to make.
Mistake #1: Choosing the wrong team.
Some people can go about their startup alone, and that’s fine if your company can actually operate as a one-person show (at least, until you grow in demand). However, if your team needs investors or other people to operate it, then you need to make smart decisions. Choosing the wrong team, whether just for financial reasons or to actually do some work, will jeopardize your company and its future. In fact, sometimes if this team becomes too broken, it could actually become the end of your company before it even gets off the ground. Be sure to take time to think long and hard about who it is you want to work with.
Mistake #2: Waiting too long.
We are all obsessed with thinking things have to wait until they’re perfect to get off the ground, but that’s not true. If you dream of having a company that offers 10 products, you don’t have to wait for all 10 of those products to be manufactured before launching. Instead, you can start with 1 or 2 products, and then bring on the others as your company starts to grow. If you take too long to start your business, you may just find that people no longer have a need for your product or service or that someone has already beaten you to the punch.
Mistake #3: Choosing the wrong prices.
You need to make money on your business, and sometimes startups fail because of their poor price choices. For instance, even though you want to make a name for yourself doesn’t mean you should offer your product or service for pennies. This could kill your margins and make it hard for your company to stay afloat. In addition, you also don’t want to price yourself too high, as you need to ensure it’s set at a price that people will actually pay. If you find your prices are too high or too low, it could run you out of business.
Mistake #4: No marketing.
Marketing costs can be pricey, but marketing your startup is important if you want to make people aware you exist. In fact, you don’t even have to spend a lot of money. Simply push information out via social media as a way to generate interest. You can also try some guerilla marketing efforts for your business too, as those can be relatively cheap.
In addition to not marketing yourself, you also want to ensure you’re not waiting too long to market yourself. For instance, you don’t have to wait until the official launch of your company to get the word out there. Instead, take after companies like Boat Planet who created a website even though they weren’t yet ready to start business. By doing this, you get your company name out there and start to generate interest. This way, when your company is ready to actually open, you’ll have a nice chunk of people who want to buy your product or service.
Mistake #5: Avoiding legalities.
One of the worst things any startup can do is to avoid seeking legal advice. Starting a business requires you to file certain paperwork and follow certain rules, and if you don’t do that, you could find your company at risk of being shut down. Talk with a business lawyer from the beginning to see what type of documentation you need to have and what type of paperwork you may need to file. By doing this, you’ll protect the company from legal issues that could hinder or completely halt your startup. In addition, be sure to find out the legal requirements about hiring a staff, workman’s compensation, and anything else you may need to keep your business on the up and up.
Running your own business can be a dream come true, but it also comes with hard work and a lot of know-how. If you are trying to make your dreams come true too quickly, chances are you’ll make some mistakes. While some businesses can learn from these, others find the mistakes are too hard to get away from and can ruin the business altogether.
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