08.06.2020
15 MISTAKES THAT SHOULD BE AVOIDED WHEN STARTING A BUSINESS
According to data provided by the US Bureau of Labor Statistics, 20% of new businesses fail in the first two years after starting a business, and approximately half of all businesses do not survive until the fifth year. So how do you successfully grow your company?
Experts from BusinessNewsDaily contact hundreds of small business owners, financial advisors, legal experts and business consultants and compile a list of the biggest mistakes that entrepreneurs make when starting a company.
"The biggest mistake you can make is to be afraid of failure. It is key to your success and you should not be afraid of it. After each fall there are new peaks to climb”.
"Too many companies start without a master plan and that's why they fail. Every start-up company must have a clear business plan. It should include how much the operation costs, what sales are expected, who the products are aimed at and why", said Deacon Hayes, financial expert and founder of WellKeptWallet.com.
"Good organization is key. Running a small business is like running a circus. It is normal for dozens of things to happen at once. All tasks must be arranged in a list to follow. Prioritize them”.
"A common startup mistake is not taking the time to find out what customers you are targeting your products and services for. Many companies are targeting a market that is too small to start a big business." - George Deglin, co-founder and CEO of OneSignal
"The biggest mistakes that start-ups make is that they do not register it and do not protect their intellectual property."
"Unfortunately, many entrepreneurs allow themselves to think that they are alone and try to work independently without seeking advice from those more experienced than them." Surround yourself with reliable and experienced advisors to discuss your business ideas, strategies and challenges.
"An important piece of advice that entrepreneurs need to know before starting a business is that their investors are more than just financial backers. You need to be sure what their goals are. Once the companies have gone through the initial financing, they start working with investors who need to be interested in the growth and sustainability of the business”, said Krish Subramanian, co-founder and CEO of Chargebee.
"One of the biggest mistakes a business owner can make is not fulfilling contracts. No matter how good a relationship you have with the people you work with, everything has to be legal", said Michelle Colon-Johnson, founder of 2 Dream Productions.
"Hiring full-time employees too quickly is not necessary since your business is not yet so developed and you can hire people on a part-time basis."
"Improper handling of money is almost a death sentence for start-ups with limited access to capital. I made the mistake of hiring too many people instead of the right people and spending too much money without a well-organized financial management process”, said Thomas Aronica, founder and CEO of Biller Genie.
"It's often easier to set a salary for a new employee than for an owner. Whatever you decide, make sure your salary and those of your employees are as adequate and well-deserved as possible", said Diana Santaguida, co-founder and creative director of SEOcial.
"Don't value yourself too much, but don't underestimate yourself. Many entrepreneurs start with the best of intentions and give things away for free or donate to charity. Be very careful with this, don't risk going bankrupt in the beginning." James Chittenden, business consultant at OneClickAdvisor.
"You need to make a plan for how you will get your first user, the first 10 users, the first 100 users, and so on. This is where you need a detailed marketing strategy that covers the initial acquisition of customers, the transformation of those customers into regular customers to attract more", said Sam Shepard, co-founder of Cabana.
"When you start hiring, make sure you have hard-working and diligent partners who will do whatever it takes to get you together," said Devin Miller, a lawyer, founder and CEO of Miller IP Law.
"One of the biggest mistakes is rushing. Once you've set up the company and started attracting customers, make sure your systems and processes are in place, such as payment terms, contracts, appropriate communication channels, while you can still maintain your marketing strategy. Once everything is in order, then get down to business”, Gems Collins, online course creator, business trainer and CEO of Gems Collins LLC.
Conclusion:
Successful start-up of a company will not be realized if you do not have partners - surround yourself with experts to help you with the necessary advice. Mistakes are inevitable.
Don't be afraid of failure. Instead, learn and focus your business model on your needs.
