Five Mistakes to Avoid When Starting a Small Business

Posted in Entrepreneurship | 11 comments

Starting your own business sounds really exciting. In fact, it can be one of the most challenging and most rewarding experiences you can have in life.

But let’s face it, it’s not easy to start and run your own full time business successfully. There is no magic formula, there is no fool-proof plan to easily reach small business startup success.

Many first-time entrepreneurs, and even seasoned ones, make mistakes in the process.

While there are some mistakes which are unavoidable, there are also plenty of so-called “silly mistakes” that entrepreneurs make.  No wonder more than half of all new start-ups fail within the first three years!

But don’t let this get you down.

You can start off on the right foot by learning how you can avoid these mistakes. Kick-off your new venture by avoiding these common business mistakes, and create a plan on how to face the rest.

Mistake 1: Absence of a Business Plan

“If you fail to plan, you plan to fail.” This old adage rings true for every business.

What will happen to your business if you don’t have any plans? How will you know if you are doing the right things?

Planning might not be fun and exciting, but it is something you have to do. You have to outline the plan for every part of your business – your financials, your marketing, your sales, etc.

Your short-term and long term plans serve as the foundation for your success. They help you see where you’re going.  Creating strategies, will help you determine your marketing activities and how you manage your business to accomplish your goals.

Mistake 2: Not Having any Business Core Values and Statements

Most small businesses fail to see the importance of having business mission and vision statements or establishing their core business values. The absence of these crucial elements is like riding a merry-go-round and taking the trip without any purpose. It’s easy to wind up going around in circles, and never reaching any sort of goal.

These vision and mission statements serve as your destination. Having these will give you a clear picture of where you want your business to be in the future.

Those core values serve as the guiding principles which need to be strongly instilled in your team.  All these will bind you, your employees and your customers together.

Mistake 3: Sacrificing Personal Relationships

Most start-up businesses require around the clock attention, at least in the beginning. Since you can’t simply stop working at 5 p.m. each day, nor have all of your weekends free, your relationships with your family, friends and loves ones can be affected. It can even put a strain on them if you allow it to.

This is why you need to be up-front with them about your time investment from the beginning, as you need their support and understanding. Don’t neglect these people. Strive to have a healthier private life instead.

The more support you have from the people around you and the more balanced your life is, the more likely your business will succeed. Your relationships will remain intact as well.

Mistake 4: Focusing Too Much on the Profit

Most start-ups are usually not profitable within their first year. It is vital that you set-up every aspect of your business right from the start, rather than being too concerned on getting instant results. Focusing too much on profit will hamper the growth of your business. Don’t overlook the need to learn how to run your business successfully, first.

Also, make sure you have enough capital to carry you through the first year, and a reliable income source other than your business that will help to sustain you.  Instead of focusing only on how to make a profit, it’s better to focus your work on the long-term results.

Mistake 5: Working 24/7

Let’s face it. Being chained to your computer or staying at home all the time is not always the best way to do business – even if your business is online, or a home based one.

Don’t be too busy sitting at your desk all day or all year long! It is simply not healthy.

Staying in your office or at home all the time will make your life dull. By being an entrepreneur, you also have to network and benefit from face-to-face interactions with people in the industry.  Get out of your office, or your house, have lunch with your clients, invite friends to the cafe, or simply work-out at the gym.

Tend to every aspect of your life. It will bring benefits not just to your business, but to your personal life as well.

Looking for ways on how to run a successful business start-up?  Let Pamela Finnesand, The Business Maximizer, assist you. Want to Learn the 3 more Mistakes Startups make and how to overcome them, check out http://ILoveMarketingSolutions.com