Everyone makes mistakes. Hence the proverb’ to err is human’. We should not shy away from our mistakes. Instead, we should accept the mistakes, make amendments and move on. That same principle applies to business as well. Even seasoned people in the business make mistakes. Every mistake committed is a lesson to learn.
When you start a business, you may have to avoid inevitable mistakes, for instance, rushing the hiring process. Then you may end up hiring the people with the wrong skills for the business. That can strain your business on vital resources.
As a rookie entrepreneur, you should be enthusiastic and passionate about your business. Enthusiasm for your business is a blessing and a curse. Passion for your business can be the driving force for success. Still, it can also lead to operational and financial disasters unless you take enough time to consider all odds before making a decision.
This article explores eight ways to avoid rookie mistakes when you start your venture.
1. Don’t fear the unknown
When you start a business, you should not fear the unknown. That is the fear of failure. There’s a possibility that the business would not kick-off. You would not be so sure until you tried. If you are afraid of failure, you will make poor decisions trying to play safe. If you are starting your business afresh, never give in to the fear of failure.
Remember that ups and downs are part of the learning process. So never be afraid of taking risks. If you are to grow, you have to take risks.
2. A business plan
A business plan is a document that outlines the vision for your business, goals, and financial projections for the next three to five years. A business without a business plan is a recipe for disaster. A business plan is essential when approaching an investor or a bank for a loan to fund the business.
The business plan should include sections explaining the business concept and products. It should also include market research and competitor analysis of similar products or services. The business plan should also have the following;
- Company and management structure
- Marketing and sales strategy
- Investment requirement
- A projection of the business’s financial performance for the next three or five years
You need not have a formal business plan if you can fund your business. You could have a slimmed-down version, but the business plan should include goals, objectives, market, and competitor analysis.
One of the primary reasons why businesses fail is the lack of investment. For a business to begin operation requires a considerable investment. For instance, opening a restaurant requires a substantial investment. On the other hand, a freelance writing business needs no significant investment.
For funding to start the business, you should first assess the initial investment required. When approaching an investor, you should not hesitate to ask what you need.
4. Market study and audience
New business owners often make a common mistake: the lack of market study and the audience they intend to target. The start-up may have a great product, but the market they try to address may not be significant and may be enough to grow the business. Therefore, a sound market study is essential because you would know the market and the audience you intend to address.
The product you are about to launch is to address a specific audience, market, or problem. A market study helps you to determine the size market and the audience you target. Once you complete the market study, you will be well aware of the market, the audience, and the scalability of the business.
5. Never ignore the competition
The business owners make the mistake of ignoring the competition. Over the years, the market has become very competitive. There are numerous products available in the market, and they will only grow in the future. Therefore, you should not ignore the competition in the market. You have to study the market trend and introduce the products. A thorough market study will get you familiarised with the market and in a position to predict emerging trends. So you can address the appropriate market.
New business owners often think they are alone and have to do everything by themselves. You don’t have to do everything as a business owner. If you do things by yourself, you may cut some corners, but in the long run, you may be able to get things done on time. You can delegate duties and responsibilities to your staff or hire help when needed. If you want direction, when you feel stuck. You can appoint a board of directors to gain wisdom and guidance.
7. Digital Footprints
In the digital era, you have to maintain digital footprints. The covid19 pandemic accelerated the need to preserve digital footprints. When starting a business, you must also ensure that you exit the digital sphere. Creating a website is halfway. Social media platforms are the ideal choices. If you want to tap into its potential, you have to maintain the social media profiles professionally.
8. Maintain proper records
The small business owner often fails to maintain appropriate records of what goes on, especially the financial matter. Keeping records takes time and effort, but you have to do it anyway. It is essential when it is time to pay taxes. Moreover, it will give you a sense of where your business stands financially and make an informed decision about the company.
Picktime is an appointment scheduling software that organizes your schedules for the day, week, and month. As a small business owner, you can not afford to have an appointment canceled. The software can quickly send an automated reminder via email or SMS. You can also accept partial or complete payments by merging the payment gateways.
In conclusion, following these steps would help you avoid the common mistakes that new business owners often commit.