Starting a Small Business? Avoid These Common Mistakes.

9 Common Mistakes To Avoid When Starting Your Small Business

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Submitted by Gabriel Ted

Gabriel is a freelance writer based in London. He holds a degree in Business and has previously worked at Tripadvisor. Gabriel has a particular interest in Startups and Cryptocurrencies. 

(Contributions are guest opinions only and don’t reflect the opinion or endorsement of Money Fit by DRS, our staff, client or other interested parties.)

9 Common Mistakes To Avoid When Starting Your Small Business

If you are thinking of starting a small business, below are a few common mistakes to avoid so that you can experience the success you hoped for.

Starting Without A Plan

Don’t dash your dreams of successfully managing a small business by making these 9 common mistakes. Give yourself the best chance to succeed, right from the start!

Don’t dash your dreams of successfully managing a small business by making these 9 common mistakes. Give yourself the best chance to succeed, right from the start!

Having a well thought out business plan is the first and most important step in starting your small business. Knowing exactly where you want to be within the first few weeks, months, and year as well as understanding what you’ll need to get there is vital in ensuring your success. Don’t make the mistake of walking into your new company without being sure of how day-to-day operations will run, if you will store your confidential documents with virtual data room providers, and how you will raise the capital to do so.

Fearing Failure

Everyone fails at some point or another, it’s inevitable. So, fearing failure will only hold you back and not allow you to plan for the worst case scenario as much as you’ve planned for success. Any idea you have, consider the options if it were to fail and prepare yourself and your business for that option so that you won’t be blindsided if it actually does. Furthermore, failure is a great way to learn and grow early on in the process and shouldn’t be avoided as part of the overall experience.  

Not Knowing Your Target Audience

Knowing your industry is one thing, but not knowing the audience you want to partner with your company is another. You need to be aware of who you are making your products or services for and cater your marketing techniques, design, and overall brand to them. Different generations respond to different selling points, so it’s important that you know exactly what those are before your business is live and available to the public consumer.   

Not Being Open Minded

No one is perfect, which is why it’s important to have an open mind in the way you start and run your business. Recognizing when things might be going wrong or taking the advice from someone else to better your company isn’t a downfall, but rather a sign that you are willing to put away your pride and do what’s right for your business. Don’t make the mistake of being stubborn and unrelenting—your success might suffer for it.  

Not Finding The Right People For Your Team

 The moment you are able to afford staff can be quite exciting, but don’t let it cloud your judgement of the people you decide to bring onto your team. Rather than hiring quickly, give yourself the necessary time to find those that are the right fit for what you need. Having the most capable individuals on your team will better your chances at success and save you time and money in the long run that would have to go toward rehiring or fixing errors that the wrong employees have made.  

Only Doing What You Love

It is the dream to create a business specifically around what you are passionate about, but that isn’t always realistic. Falling victim to this mentality might only lead you to failure if you aren’t exactly good at what you love doing. Instead, find something that you are good at and see if there is any aspect of it that you can grow to love. This will give you a better chance at creating a successful business that stands the test of time.  

Not Managing Your Finances

Starting a business can be quite exciting and you might be tempted to pour as much money as you can into it, but this can be a big mistake, especially in the early stages of the business. It is important that you manage your finances effectively and create a budget that works with what you accomplish and the resources you have available so that you don’t risk running out of money midway through your company’s development.  

Refusing Help From Others

It’s important as a small business owner to set aside your pride and accept help from others when you need it. This can be from your employees during important projects or from friends and family when you need a bit of extra money to get your business off the ground. Without a bit of extra help and feedback you won’t be nearly as successful as you had hoped, especially in the early stages of your business and its development.

Not Marketing Your Business Accurately

Along with knowing your target audience, it is important to also know how to market to them and the overall public accurately. Use online marketing to your advantage and don’t forgo one form of advertising for another—you never know what might provide more results when it comes to gaining a larger client base.