Most businesses die before they even start or launch. Others launch but die after a short time due to ignorance, lack of knowledge or mistakes that could be avoided.
If you are planning to start a business, there a few things you need to put into consideration if you want your business to start off right and succeed.
In a previous post, we shared the Common Beginner Mistakes Every Entrepreneur Should Avoid. In this post, you will learn 10 Key mistakes to look out for to avoid killing your business.
A business is a venture that needs a lot of cautiousness and preparedness. If you are not cautious, you will make avoidable mistakes that will cost you and your start-up.
Starting/Founding Alone.
Starting a business alone is a risky road to take. You need a team or a second party to start the business with.
Some entrepreneurs go way too far with this and have way too many people involved while starting a business. This can be a suicidal move to take.
You need to understand why you need an extra hand or two and where you need them. Understand the areas in your business that need more than you can provide in the beginning. This is why you need an extra investor or two. However, many shareholders in the beginning can also be problematic.
Have a few people support you with their skills, abilities and knowledge.
Moral support from friends and your team is also important in beginning phase of your business. Have people to brainstorm with and to cheer you up when things start getting thick.
Poor Planning Structure.
One thing every individual planning to start a business needs to understand is the importance of a good planning structure.
Planning is good, but having a good planning structure in place is what will take your business idea to the next level.
A good planning structure involves all the vital aspects of your business. The crucial plans to think through include a business plan as mentioned in a previous post, a financial/money plan for your business which is basically the budget for your business and the marketing plan which is vital in ensuring you reach you ideal customer.
Planning involves a lot of research and this can be very dreary but it will make things clearer for you and help you understand where you are going and how to get there.
Make sure you invest time and resources to coming up with a solid planning structure during the planning phase.
Get answers to all the important questions during the planning phase. Understand the challenges you are likely going to face and how you will address them when they arise.
A good and solid planning structure will give your business a sense of direction
Too Little Capital.
Depending on the type of business you want to start, you need to have enough money or capital to help you put the essential things in place before you go hitting the ground.
The money or capital enough to start a business is relative as there are different types of businesses. Some business require very little capital to start and pick up. Others need a little bit more capital than most.
You need to understand your business and establish a budget plan that suits your business and raise enough capital for your business to take off.
Wrong Customer Target.
One of the key elements that will lead to the success of your business is knowing who your target customer is. What are their needs? How can my business meet their needs? Where and how do I find them?
To know and understand your ideal customer, you need to ask yourself these questions and many more. You cannot go into business blindly without getting the answers to this question right.
You have to do your market research way before launching your business and understand the people you are trying to reach.
Understanding your ideal customer will help you tailor your products (goods and services), and your marketing strategies in line with the needs of your customers.
Wrong Location
Where you locate your business plays a big role towards the success of your business. Some businesses prosper in some places while others don’t. Your business type will help you determine the location.
Where your target audience is will influence where your business location is. Your customers should be able to access you conveniently. You need to reach your target audience.
You can have a physical location such as a storefront or an online presence/location such as an e-commerce website or a social media platform like Facebook or Instagram.
The size of your business if measured by the number of staff you have also determines the location. If you have a small business, you can run it at the comfort of your house.
The products you are selling and services you are offering also plays a role in business location.
The most important factor to consider is your customer base. When you locate your customers, you will know the right location for your business, physical or online.
Wrong Marketing Medium
This comes in your marketing plan. When coming up with your marketing plan, you need to consider the platform you need to use to reach your target customers.
Know where your target audience is and understand your marketing strategy/approach. This will help you determine the platforms you need to market your business and reach the right customers.
If you are doing digital marketing, depending on where your audience is, these main platforms will come in handy.
Google My Business, Facebook Business Page, Instagram Business Account and LinkedIn Business Page. Other platforms include search engine marketing, email marketing, pay per click among others.
If you are doing traditional marketing there are platforms such as TV, Radio, Print and telephone
The right marketing platform is determined by knowing who your target customer is and where they are.
Launching Too Early
DO NOT launch your business until it is ready to launch.
This requires patience and preparedness. Do you have everything crucial put together? Are you ready for your customers? Are the necessary systems and processes in place? Is your product even ready to launch?
There are a few things that are easily forgotten or rubbed off. Things like the payment processes, what forms of payments will your customers use? Can your business accommodate those processes? How will you communicate with your customers and your team? Do you have contracts for your team and suppliers ready?
Make sure you have covered all the cracks before your business comes crumbling down on you in no time.
Unqualified Employees/Team
Every business needs the right team. A team that will be able to perform its roles and responsibilities as required.
With the many different tasks in a business, know the positions to be filled in your business. Get people who have the right skill sets and background to fulfill these roles.
A single mistake in any area of a business such as legal issues, financial issues, customer relations, poor quality products and poor service delivery can cost you a lot to rectify.
Employ qualified personnel to work with you, they can be specialists or generalists. But as your business grows, know when you need either.
Putting Little Efforts
When you sit and wait for your products to sell themselves and bring you returns and profits without your effort, you will wait for a long time my friend.
You have to push and sell your business. You have to be a key part and a face of your business. Put efforts into marketing your business and be involved in the everyday activities of your business. Don’t just delegate duties and then disappear, be a part of the duties and follow up.
Know what is happening in your business and what your business needs and put the necessary efforts to boost your business growth.
Poor Internal Management/Leadership
The leadership or management of a business influences the success of a business.
The internal management is in control of the business activities, business policies, communication strategies, the general business environment and risk management strategies in-case of crisis.
Poor control of the business internally will affect the control of the business externally. Every business owner should ensure that the right management team is in place for the business.
The internal management also influences the productivity of employees and the efficiency of the business. A wanting management will reduce the productivity and the satisfaction of staff later affecting the growth and efficiency of the business. Don’t kill your business before it even picks up. Avoid these mistakes and you will increase the chances of your business growing and succeeding. You have to be cautious to notice, learn and correct these mistakes and to even prevent them from happeni
