Starting a small business is an exciting and nerve-racking time. However, many business owners hinder their success by making avoidable mistakes.
Here’s what to avoid.
Focusing on Research and Planning
Research activities such as business planning, taking feedback and gathering advice can help shape your company’s future, but everything changes once a plan is put into action. Accordingly, spending too long researching is just a roadblock to future success.
For example, if you’re taking a new product to market, make sure you have a firm deadline for the launch and stick to it. The deadline increases your focus, helping you settle choices faster. Further, you’ll learn more about the product when it’s in your customers’ and clients’ hands. Not every decision will be right, but it can be adjusted.
You’re Too Close to the Business
Sometimes a young business can overestimate what the market is prepared to pay for its product or service. It’s understandable – your business is your baby and it’s that passion that will drive your company to future glory. However, the emotional connection you have to your idea – even if it’s a killer idea – can restrict early growth.
You don’t need to devalue your product. Rather, you can strip away some features and create a cheaper basic package, which allows customers and clients to experience your offering while you get paid. You can then upsell them into more lucrative packages once your business proves its worth.
Chasing Revenue for Revenue’s Sake
Small business owners often stump up their own cash to get their company underway. Accordingly, making money can become a serious stress point, forcing you into offerings outside the core product to generate revenue and pay bills. Changing your company’s revenue model so frequently will dilute your focus as you spread yourself thin across multiple streams.
Starting with a solid foundation of capital is the best way to avoid this situation, allowing you to hone your business into the money-generating machine you expect it to be in the long term.
Allowing Investors to Call the Shots
Some entrepreneurs are at the mercy of the person who controls the money spigot, but no one understands your vision quite like you. While investors can offer quality advice, they aren’t infallible, and preparing to say no to their ideas will keep your company true to its dream.
For example, if your investor refers some executives and you hire them on blind faith, it could cause serious stress and set you back if they don’t work out. When it comes to building and refining your business, you are your own best advisor.
Trying to Perfect Everything
Spending too much time trying to get everything right means you’ll take time from perfecting your core product. There’s no need to get the online training video perfect when you need to work on package pricing or product testing.
Keeping a clear mind and avoiding these common mistakes will put your business on the fast track to success.
Read about the fatal financial mistakes small business owners make.
Information may be abridged and therefore incomplete. This document/information does not constitute, and should not be considered a substitute for, legal or financial advice. Each financial situation is different, the advice provided is intended to be general. Please contact your financial or legal advisors for information specific to your situation.