Starting a new business can be one of the most exciting things in life. It's the start of something new where you're in charge and the future has yet to be decided. Unfortunately, the reality is that most businesses fail in the first few months or years and there are generally a few common reasons why this happens. Here are five deadly mistakes to avoid when starting your business ...
Over Exuberance and Not Being Realistic On Expectations
I get it ... you are excited to be your own boss and that's an amazing feeling. However, as euphoric as you might be ... you need to be realistic too. Not everyone is going to care about how great you think you are and no matter what you do there are always going to be established competitors that have more experience. Of course, the opposite is true as well - avoid letting your fear paralyze you!
Not Focused On What You Can Deliver Best
Years ago when I ran a marketing agency in Chicago, I tried to offer everything possible from Public Relations to Digital Marketing and even Graphic Design and Event Planning. The result was that while we did earn a handful of clients, few of them were big enough to make money on and we spread ourselves too thin. Additionally, because of how many services we offered, it cost a fortune to buy tools, promote multiple channels, and maintain our expertise. Later, by focusing specifically on Digital Marketing we were able to promote our expertise in Social Media and Influencer Marketing.
Not Picking The Right Tools And Partners
Selecting the right tools and partners is critical to success in business. While you can do research, ask for references, and trust your gut - mistakes will happen. Before making any investment in software tools for instance, make sure to read reviews like this Bitcoin Trader scam post. While you need to take online reviews with a grain of salt - look for multiple data points to help you form your own opinion.
Failure To Plan For Contingencies
No matter how solid your business idea might be and regardless of how many customers you get right out of the gate ... your business will encounter obstacles. These obstacles can't always be predicted but they can always be planned for. Whether that means designing your business plan for multiple revenue streams or saving a percentage of each payment for a reserve fund, there are ways that you can plan for contingencies.
Not Spending Enough Money The Right Way
This is a mistake that a lot of startup businesses don't understand and frankly it is a tricky lesson to learn. In some previous businesses, I was miserly with my funding and didn't want to waste it. What I actually discovered ... months too late ... was that because I never spent the money I needed to promote the business and present a successful image, I never was able to bring the money in to be successful. This lead to a slow burn and chasing low hanging, unprofitable work simply to pay the bills.