Often you see businesses closing their doors for the same basic reason that they have started the wrong business in the wrong place at the wrong time.
Here are the top 10 business mistakes you don’t want to make when starting a new business:
- Not making a business plan
The main purpose of a business plan is to know whether your idea can be transformed into a successful business. This is essential tool to help test the feasibility and give you the best chance of success with your business. It is time-consuming and takes a lot of research, but investing your time now will save you time and money later down the road.
- Doing what you love
Doing something you love may seem like a good idea but there are a lot of people who love things they are not good at. Choose something related to your interests and something that people will pay you for to insure you have a successful profitable business.
- Not doing market research
Without any research, you have no idea if there is a market for your business. Test your product or service before you start to be sure
- Ignoring the competition
Ignoring the competition won’t make them go away. Who is going to buy your product if Joe sells the same product for 10% less and what if his look/smell/feel better than yours? You also need to keep in mind market saturation. Is there any room in your area for another business that already exists?
- Not considering your strengths and weaknesses
Sometimes our strengths or weaknesses don’t fit well with the business model we want to use. For example, if you are not an outgoing person with good people skills, maybe retail isn’t the right business for you.
- Not understanding what you sell
You need to know what you are actually selling and create a Unique Selling Proposition accordingly if you want your new business to be successful.
- Not making sure you have enough money
The majority of new businesses will not make money when they open, some may not make significant money for the first few years. You have to have enough money to live while your business is getting established and enough money for your business to survive and continue to grow.
- Not investing in marketing
No one will know your business exists without some effective marketing. Most marketing strategies like referrals and social media take time to become effective but if you want your business to be successful it is important to take the time.
Remember that starting a business is a process, not an event. Take the time to do the thinking and the research to increase the likelihood of your new business succeeding.