When a person starts a business, they dream of making a profit and seeing their enterprise grow. Sadly, not every entrepreneur actualizes their goals due to some common mistakes during startup.
This article will show you the common mistakes new entrepreneurs make so you don’t find yourself struggling with them.
1. Starting Without a Business Plan
A good business plan is an important tool for every entrepreneur. It helps you stay focused on the strategic steps you’ll need for your business to succeed.
You would be able to guide your company’s efforts and put together your sales budgets, cash flow projections, and income statements. Such information will give potential lenders and investors the information that will inspire them to join forces with you if that is your desire.
Putting together a business plan is quite tasking, and many times, small business owners discover that their ideas aren’t actually feasible.
That is why new business owners prefer to skip this stage entirely and kickstart their businesses, hoping that fortune will smile on them along the way. This is a risky move that could cost an entrepreneur a lot of money because things may not work out as they envisaged. Make sure you don’t make this common mistake when starting your business.
2. Not Keeping Track of Your Sales
When a business is running, its customer base could increase, and sales could grow rapidly. This is every entrepreneur’s dream, but they could lose clients if this process isn’t managed correctly.
Keeping track of sales is challenging and many new entrepreneurs make this common mistake. You would need to monitor your sales team’s performance and distribute leads or prospects to your sales reps based on each prospect’s requirements.
Managing all these tasks at the initial stage of your business may be feasible, but when your business expands, you may need to automate your sales management.
With the correct sales management tools, you would be able to deliver value with every customer interaction, optimize your sales cycles, and grow your revenue. You would also strategically develop an effective sales process to suit your customers’ buying cycles.
3. Starting Without Insurance is a common mistake to avoid
Having business insurance is crucial because a potential mishap could wipe out the entire assets, and the financial consequences can be devastating for a small business. Insurance helps to protect you in case a customer or worker experiences harm in your company or if your business is damaged by an incident like a fire.
In addition, insurance could enable you to run your enterprise effectively because it could be a requirement for some types of business activities.
Some business contracts require that you be insured, and without the required insurance, you may miss out on such opportunities. You’ll need to research the type of insurance your business will need or contact an insurance consultant to help you.
4. Trying to Do Everything Yourself
Many entrepreneurs are self-reliant at the initial stages of their businesses to reduce the cost of paying other people to perform specific tasks. You should know your limits and delegate tasks that require specialized skills and knowledge to professionals that can handle them.
When making hiring decisions, focus more on the value you’ll get instead of the hiring cost. If you have inexperienced or unskilled people on your team offering their services at lower prices, you could end up paying more in the long run. This is because they may not perform tasks properly, and you may waste resources and time trying to redo them.
5. Not Planning For Marketing
No matter the size of your business, you should think about how to spread the word about your brand. Some business owners think their products or services are revolutionary and rely solely on free marketing by word of mouth.
Even if you have the best and most unique product, you’ll always have competition out there trying to get your target customers’ attention.
That is why you should invest in marketing. Look at the areas your competition is spending the most on when marketing and determine how best you can compete and stand out.
Patience and resilience are essential traits for entrepreneurs. With these traits, you would stay focused on your goals regardless of any challenge.
Running a business requires time, commitment, and hard work. You may want your enterprise to become profitable immediately, but you shouldn’t make business decisions hastily because of your enthusiasm.
Don’t be disheartened if you fail to make a profit within the first year or two. It is common to suffer some setbacks even after things seem to be picking up. You should have the patience and financial reserve to keep pushing forward to see your business flourish.
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I am Adeyemi Adetilewa, a media consultant, entrepreneur, husband, and father. Founder and Editor-In-Chief of Ideas Plus Business Magazine, online business resources for entrepreneurs. I help brands share unique and impactful stories through the use of public relations, advertising, and online marketing. My work has been featured on the Huffington Post, Thrive Global, Addicted2Success, Hackernoon, The Good Men Project, and other publications.