Only seventy percent of small businesses in the united states last for longer than two years. That’s a high failure rate!
So, how do you start your business outright, and keep it going steadily for the long term? Keep reading to learn about the top mistakes with starting businesses, and how to avoid them and keep your business running smoothly.
1. Business Plan Issues
You need a solid business plan to make sure your business works. Under or over-preparing can both have issues. Consider your short-term and long-term business goals when you’re putting your plan together.
If you’re feeling unsure, talk to a professional and ask them to go over your business plan. That way, you’ll have someone else to check for any blind spots.
2. Too Many Cooks
Having too many people involved in creating a new company can cause confusion. Throwing in too many ideas at once can be distracting, and overextend your company.
But, having too few people can cause too much stress on the people you do have involved. It’s important to find a balance. And, you need to be able to delegate, especially when it comes to tasks you’re not as knowledgeable about.
3. Being Inflexible
You’ll need to let go of any preconceptions you have when you’re starting a business. You need to roll with the punches and be able to pivot if it turns out there’s a better direction for you to take.
So, if someone involved with your business has a suggestion to make things better, take their suggestions seriously. The same should be true of any suggestions or criticisms made by potential customers. The customer usually knows what they want, after all.
4. Budgeting Carefully
Like with all aspects of your life, you need to have a very careful financial plan. Work a cushion into your budget, just in case of an emergency. Some of the costs you’ll need to consider when you’re putting together a budget include:
- Rent or mortgage
- Incorporation fees
- Office supplies and furniture
- Marketing or advertising costs
Your budget may differ based on what your business is. For example, a budget for opening a restaurant would look a lot different than if you planned to start a marketing company.
5. Failing on Marketing
Your business plan can be perfect, but if you don’t have a marketing plan, no one will know about it. Do market research, and think about what groups you want to target with your advertising. Think about whether you should be targeting your advertising towards specific locations.
Use social media and online marketing to your business’s advantage. You can hire a firm or a consultant if you have no idea of how to get started when you’re marketing businesses online.
Mistakes With Starting Businesses: Now You Know
Don’t fall for any of these mistakes with starting businesses. With a solid plan, your business will be sure to succeed.
Do you need more business advice? Scroll through a few of our other great posts.