Most Common Mistakes People Make When Starting a New Business

by in Misc

Starting your own business from scratch has never been easy, but nowadays with the recession lurking at each corner and incremented cost of living in almost every country on the planet, it is definitely not a simple task. Despite all this, young people seem to be more interested in starting online businesses that don´t require a large capital, but even so, the inexperience could take serious toll on their first business project. 

Bad Planning

It is of extreme importance to have a clear idea what type of project you want to carry out and to elaborate a business plan with clear goals. 17% of failures are motivated by launching a product without a good business model behind it or without evolving the initial model, according to data from CB Insights. To this is added a 14% that closes due to not knowing how to correctly execute their marketing plan and another 10% that pivoted the business in the wrong way. Furthermore, 29% of companies close because they run out of money, according to another survey. One of the reasons is that entrepreneurs tend to be too optimistic with their income forecasts and also with the costs they will have to bear. In addition, your safety cushion to keep the business afloat is also often limited and sometimes you are not in a position to get into debt by asking for a loan.

Mischoosing partners and employees

One of the keys to creating successful business is to have a trained and solid team. It is important for them to have specific knowledge and skills according to their role so that the team is truly multidisciplinary. Therefore, it is crucial to hire workers based on whether they fit into the culture of the company, first, and their ability, second since we can always expand one´s knowledge through training. This order of priorities should never be reversed. For this, it is important to define the company´s motto so that everyone can row in the same direction. From there, you can already think about what service you want to provide and who should develop it.

Failing to analyze the market properly

You must keep in mind that you should not offer a product or service just because you like it or it solves a problem for you. In other words, you must know what really suits the needs of your customers. Another very common mistake that entrepreneurs often make is to underestimate the competition. This happens mainly due to lack of experience and because we think that our idea is so original that we may think that we have less competition than we actually do. This can be avoided by doing a thorough analysis of the competition. Even if the product or service that we offer is different, what really matters is to evaluate if that company meets the needs of our customers, and if the answer is yes, they are the competition and therefore this must be kept in mind when doing the market analysis.

Ignoring stress

There is a lot at stake when starting a business, especially if the entrepreneur has had get into debt in order to have an initial investment. Also, another factor that shouldn´t be neglected is how to deal with stress. For a business to begin to thrive, it can take many months and even years, and during that time you have to work very hard without obtaining much profit, which can cause feelings of frustration and anguish. Many business owners say that especially in the first years of their company they could not enjoy their free time because work did not allow it. However, no matter how hard you work, you should always find a way to relax in one way or another, so it is very important to find tools that relieve stress. For some, that is achieved with yoga classes or going to a concert, for others it is enjoying their favorite games from the comfort of their home. For example, for people who enjoy playing online games of chance, there are many websites where you can play for free or for real money, such as, craps game which is a very popular dice game. It is played with a pair of dice in which players bet on dice rolls.

In conclusion, before starting a business, there are many other factors to consider, and this a good way to start.