Being your own boss is a dream for many. It is one reason, many individuals take a step to start a business of their own. Usually, this idea stems either from the fact that you just can not work under someone or second, because you have an Idea.
Whatever the reason is, in 2020, you see the industry is booming with start-ups. People are getting out of the thinking of doing a 9 - 5 job, and taking the courage to start something of their own. While 2020, is marked with the most financially unstable year due to the COVID-19, where many successful businesses have failed, It has also given the opportunity to many, to start-up their new ventures.
While being a businessman is a dream for many, it is not as easy as one might imagine. There are so many factors to consider and constant decision making, that if you are not as active, you might end up incurring huge losses.
There is no safe plan to start a business, it comes with lots and lots of risk. Some you can see and some are unforeseen. In this article, we will outline the 20 startup mistakes you can make. Therefore, it is better when starting your business to avoid these mistakes for a better outcome.
1. TAKE TOO LONG TO Launch: Yes, the idea of having your business is exciting, do not take too long to enter into the market. There will always be a risk and you might be a little scared, but jump in when the need exists. Do not take too long to plan in pursuit of a perfect plan.
MONEY AND TIME NEEDED: While you might have made a
business and financial plan, but when your start goes into action, there might
be a lot of hidden costs that you didn’t imagine were to be dealt with. It
might also mean additional labor and time. Be prepared and keep a fund for
these additional costs, so you are prepared. Hidden costs might include taxes
you didn’t foresee, some architectural or technical problems, etc.
DON’T EVOLVE WHEN THEY SHOULD: According to the
need of time, evolve! This means technologically, financially, etc. E.g. Many
don't make websites or get their businesses online, but today you can see all
businesses are conducted online. Those who didn’t upgrade, now had to on an urgent
basis to survive.
LEGAL PROTECTION: Many have suffered and many are
still suffering. Cover yourself legally, get insurance, etc. Do not risk
SPEND TOO MUCH: Many businesses, as soon as they
enter the market spend too much. It might be on marketing or HR. Wait for the
right time to invest in the right platform.
INVESTING IN INTERPERSONAL SKILLS: Businesses
should make it a practice to focus on how employees treat their customers. It
is one of the most important factors today, many customers are lost because
they were dealt with harshly.
INVESTING IN MAKING EMPLOYEES HAPPY: Start-up don’t
understand the importance of maintaining happy employee and focus more on
hiring new employees. Businesses need to be successful, they should make sure
their employees are focused on and boost their morale through different reward
HAVING GOALS: Make goals. This includes having
project goals, short term goals, long term goals, mission statement, and vision
HAVING ANALYTICAL TEAMS: Teams should be built to
make sure the timely attainment of goals. These goals and achievements should
include financial analysis, market analysis, etc.
INVESTING IN WEBSITE DEVELOPMENT: Today if you do not
invest in website development, your business will suffer.
11. DO NOT
BE A ONE-MAN ARMY: Remember, you might think that
you don’t need many people to run a business, but it's not true. It is better
to get professional help for different roles of businesses, rather than trying
yourself. In pursuit of trying to save your money on hiring help, you might end
up losing money.
HOW LONG SALES TAKE: It might take a couple of
months when you start generating revenue. It is not going to be instant. It
takes time and the right investment. Be patient.
ON CASH: While you might be generating a lot of
sales and cash, it is important to invest in growth, profitability, and ROI.
DOING YOUR ACCOUNTING: Invest in accounting
services and hire professionals for it for your start-up. It is important to
keep track of inflows and outflows from the start or you might end up with
missing cash or unaccounted transactions.
DOING TAXES: Do not even forget about filing your
taxes. It might get you in a lot of trouble and jail time.
16. DO NOT
UNDERESTIMATE THE POWER OF NETWORKING: Today,
Business success depends on how connected you are as well. A lot of things
might get easier for you if you are connected to the right people in the
TO PREPARE FOR RAINY DAYS: Every business is bound
to see rainy days, due to economic downfall or financial crises, etc. It is
important to have a plan for such days and to keep the business afloat.
ON HACK: Do not rely on hacks or shortcuts. Take
the proper route, even though it might take longer but make sure you are doing
it all legal and in the right way. This will save you a lot of trouble in the future.
19. NOT INVESTING IN QUALITY: Always, Always make sure that you do not compromise on your quality of the product, customer service, etc.
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