It can be far too easy to think, ‘yeah, I’ve got a great idea for a business’ and then launch a company without doing any homework. For most, they’re setting themselves up for a fall – and possibly a very expensive one. You must remember that thousands, if not millions of people, have gone before you and tried to launch a start-up, only to see it failing within a period of months. You don’t have to be one of those people! With an effective strategy in place, and the capital and knowhow to support it, you can go on to enjoy success. Here are three classic start-up mistakes to avoid.
Pursuing a no-go idea
One of the first traps you may find yourself falling into when launching a start-up is being so passionate about your business idea, that you won’t hear anything against it. Plus, by against it, that means specialists and experts advising you that it doesn’t make financial business sense. In other words, it won’t make money. This can be difficult to swallow for some, who carry on regardless – and only realize they should have taken the warning when it’s too late.
The moral of the story is that you should speak to as many people as possible when you’re thinking about launching a company – from your bank’s business advisor to mentors to fellow business owners. Get their independent take and weigh up your options. They may suggest you need to improve your knowledge and skills in some areas. If so, check out training options around your commitments, including home learning courses with Avado.
Creating too many costs
When launching a start-up, you need to keep a close eye on finances – as you’ll have to throughout the life of your business. If you have a lump of capital to start your venture, don’t be tempted to spend it all quickly, or to make purchases on a whim.
As part of your business strategy, you need to be setting out the core costs, whether that’s the purchasing of goods, paying for staff, or hiring an office. Then you need to weigh those up with your projected income. If they’re not balancing, and if you’re not seeing a profit emerging, something needs to change.
Don’t, for example, tie yourself into an expensive 12-month office rental contract, when it’s just you in the company and you don’t know where your next customer is coming from. Wait a while and, when you expand, you could get that office.
The same goes for staff. Don’t hire loads of people then realize you’re not generating enough income to cover their salaries. It needs to be a gradual, methodical, process.
Not adapting to change
All companies need to keep their eye on the ball when it comes to changes in the market. If you notice that consumer trends are changing, or your competitors are getting the edge with new products, you need to be alert. Standing still in business can be dangerous.
About: Steve Conway is a content marketing professional and inbound marketing expert. Previously, Steve worked as a marketing manager for a tech software start-up. He is passionate about discovering new software that will advance his already well-honed digital marketing techniques.