The task of starting a business can be invigorating and eagerly fulfilling. However, many startups face a lot of trouble in running the business and making it profitable.
So one should spend quality time in planning and considering the possible obstacles the new business might encounter in the long run. Listed below are some key pitfalls that entrepreneurs should abstain from:-
1. Inadequate Funding- Regardless of the revenues a startup will eventually garner, you must have adequate funds to meet the costs of your business during the initial stage. Financial issues have been one of the main reasons for the downfall of a startup in the past.
Many vendors will be reluctant to offer their services on credit, so it is important that you negotiate the terms with them before you access their services. The options that you can try for funding are to (i) approach banks for small business loans and (ii) angel investors to invest in your startup.
2. Incomplete Planning- Before you launch your business, ensure that you structure a comprehensive plan to run your business. Proper research should be done on the potential vendors, partners, rates, suppliers and most important of all, the market.
You can initiate discussions with business people you know since they can offer valuable guidance and also with employees since they will be able to share their insights on the way forward.
3. Competition- The existing competition in the market will pose a considerable threat to your startup when you launch your business. You should be aware about the activities of your competition in the market, their business strategy, new partnerships, enhancement of products etc.
Your competition will have a better knowledge about the market than you do. Always ensure that you are updated about all the crucial developments in the market and be prepared to adapt to the changes that take place.
4. Wrong Location- Choosing the right location for your startup will depend on the business you run. If you are starting a restaurant or a retail business, you should choose a location that is accessible and familiar to everyone.
In case it is a manufacturing business, you can opt for a location that will save up the cost for transportation of goods. You should keep in mind the convenience of your employees since it will help save time which is a critical factor while managing a startup.
5. Poor Marketing Strategy- Ensure you have a clear strategy before your launch your startup. You may be very passionate about the business, but the audience might not even have any knowledge about your products.
You can go social with setting up a website and promote your business online through relevant portals. So, it is essential that you chalk out a complete marketing strategy with a focus on the potential customers, how you can retain them, their interests and how you can secure maximum visibility for your product. Talk to people, study the market, follow the current trends and add these points to your strategy.