Thinking of Starting a New Business? Avoid These Mistakes!

Like many entrepreneurs, you would be spending most of the time thinking and doing the pencil work for your dream venture.

During the initial phase or while putting down primary steps, it is very likely to make mistakes no matter how hard you try. In order to be on the right path, avoid some of the common mistakes that most of the entrepreneurs do.

1. Not having a business plan

Many of the entrepreneurs talk about it, but not all are able to implement it.

A business plan is very essential before putting the first step or establishment. It is not about making a detailed document, but a basic structure of team, departments, services, and milestones.

2. Poor budget & Resource estimation

It is a bad sign when entrepreneurs are unable to make a robust financial plan and lack an estimate of capital which is essential to take the business up. An inadequate financial plan will affect the goals or squeeze the cash when business is taking the stride. Not more, but financial projections for twelve months is mandatory.

3. Lacks tracking of progress

It is essential for business to understand that planning documents are a mere garbage if proper execution is missing. Restore their importance by tracking progress and continuously upgrading the approach.

4. Neglecting external help

Not very surprising but there are several entrepreneurs who are reluctant to admit that they need support. Only after a few hit and trials, they seek a mentor or business help service.

Hiring a business consultancy or BPO firm during the initial years can bring a lot of great ideas. Some of the outsourcing companies offer free trial and affordable price plans for start-ups. All that is needed is to put a step forward, talk about the business model and get the best advice in return.

5. Purchasing assets from liquid money

A common mistake that newbies make is by using operating cash for the purchase of long-term assets. Instead of blocking this money on machinery and equipment, take business loan. Buy business assets from loan, so that you don’t run out of money anytime.

Remember! Business always requires cash-in-hand; do not block it all together unless you have a strong backup plan.

6. Hiding behind in Internet Marketing

Internet Marketing is on boom due to some reasons. And, there is hardly a business today that underestimates its potential. Being able to reach million individuals through paid ad has made it easier for businesses to think beyond their city and state. Be it social media or web-based, speak about your business idea right from the small scale.

7. Not listening to customer feedbacks

Put your ear for what your customers have to say. A customer feedback has the potential of paving your way to success. Listen to what they feel about your products and services and bring the improvement. Every business success correlates with customer happiness and satisfaction. If you can't be perfect in all avenues, aim to please your customers (at least).

8. Having unrealistic assumptions of market size

Ask a business consultancy or mentor but get the realistic understanding of target customer and size of market. Only with the correct numbers in the hand, you can strategize in the right direction. Be very specific about your target audience because it is going to help in building up a strategy.

9. Not learning from mistakes

As soon as you put the initial steps in business, mistakes are okay to happen. But, what is expected is to learn from it and take it towards eventual success. Most of the successful entrepreneurs owe their success to the prior mistakes and learning that followed.

Wrapping it up

Remember! Mistakes will be part of not only your initial phase in business but for years till your business last. All you need to do is to learn from them and not repeat them.