No young entrepreneur will want their business to go down the pan. For that reason, it’s vital that all new company bosses perform as much research as possible. The fact that you’re reading this article right now suggests you agree with that sentiment. So, we’re going to do our best today to help you get things right. There are lots of mistakes people like you make over and over again. Indeed, you only have to look at some of the details relating to failed businesses this year. Many of the individuals who started those companies made the same errors on their journey. They ended up having to close their firms, and that’s not something we want to happen to your operation. With all that in mind, read the information on this page carefully. Learning about common mistakes now should help you to avoid them in the future.
Failing to stick to your business plan
You should always create a business plan when you intend to launch a new company. That is the document that will outline your plans, and how you are going to achieve them. It should also highlight the amount of money you need to get started. You should add some milestones that your firm has to reach for each level of your planned expansions too. Failing to stick to that document is often the worst thing you can do. Sure, you need to remain flexible and take new information into consideration. However, companies that survive tend to play out their business plan as much as possible. So, make sure you keep that document to hand, and you don’t deviate from it without good reason.
Not seeking enough investment
It’s vital that you understand how much cash you require to get your business off the ground. That includes all the money you will have to spend before your profits cover your costs. It’s hard to make the prediction because you don’t know how long it will take to build a customer base. Still, you need to work hard to come up with a figure that’s likely to work for you. Remember that you might struggle to get more capital in the future. So, this is often your one chance to ensure you have everything you need to succeed. Banks are often unwilling to extend loans or provide additional lending until you’ve proved your operation is profitable. The same isn’t always true with private investors. Even so, it’s not worth taking the risk. Get things right the first time around!
Not investing enough in marketing
There is no getting away from the fact that you will have to spend a lot of money on advertising and promotion. That is how you will reach customers or clients and encourage them to buy products or services. If you don’t invest enough cash, you will never build a stable base for your firm. Also, it’s important to note that it’s possible to waste a fortune on marketing concepts that will never work. For that reason, you need to take a long look at your operation. Work out which type of person is most likely to place orders. You can then target them using digital techniques. You can push your ads towards groups of individuals based on their ages, locations, interests, and more.
Spending too much on premises rental
Another big mistake made by young entrepreneurs relates to the building they use. Many of them end up renting too early and spending too much money. For average costs, check https://www.commercialrealestate.com.au/for-lease/sydney-nsw-2000/. There are lots of similar websites that highlight those prices too. In most instances, it’s possible to run a small business from home during the early stages. You should never spend money on premises until you’ve started to make a profit. Until that time, you should keep the cash in your accounts and work from a spare bedroom. Of course, that isn’t always possible. However, most people start online companies these days. So, all they require is a laptop and an internet connection in most instances. If that applies to do, don’t rent an office until you’re ready to hire staff. Sure, your family might have some complaints. Still, they should support you if you explain your plans.
Another alternative is try Coworking Space, where you can use the space to run your business from hot desking, to have your own designate desk or even a private office. Coworking is a hot topic at the moment and it’s a movement that will be staying for a long time. If you have a business wanting to cut down expenses, Coworking is for you .The best thing is you are surrounding with like minded people and a great way to network as you know a small business owner most of the time you are cocooning in your own space and not making much affort to connect with people.
Not automating as many processes as possible
We are living in the digital age, and so all entrepreneurs should make use of the latest technology. That is especially vital during the early stages of your company. You won’t have enough time to spend your days entering financial information or logging into lots of different social media websites. So, you need to use tools that help to create automation. For example, there are lots of new accounting software packages that record all your income. There are also social media management tools that allow you to post to multiple sites at the same time. Many of them also enable you to schedule posts that get automatically displayed in the future. Regardless of the nature of your company, make sure you research the latest tech!
Employing too many full-time staff members
There will come a time when you need to hire other people within your business. That is a risky move because employees have lots of rights these days. If you suddenly encounter a drop in orders, you might struggle to pay the person’s wages. However, you are still legally obliged to send their salary at the end of each month. Thankfully, there is a solution. It says at https://www.mjdexecutive.com.au/executive-assistant that agencies are the solution. Companies in that niche help to find the best workers for your roles. While you can employ them permanently, many of those firms promote temporary contracts. Following that path is a wise move until your business has become a little more stable.
Failing to research the competition
Competitor research is crucial if you want to steal the lion’s share of any market. You need to understand rival firms and how they operate if you want to beat them. Considering that, you should begin your research as early as possible. Check online to view rival websites and social media pages. Assess their approach to the market and replicate it at the very least. However, ideally, you need to put measures in place that are going to blow other firms out of the water. Perhaps you should read some professional reviews online? Maybe you might spot some complaints people make over and over again? You could then design your operation in a way that provides a solution for those issues.
Expanding too soon
As we have already discussed, you will want to grow your operation at some point in the future. However, timing is everything in the business world. If you act too soon, you might end up ruining your chances of success. The same goes for anyone who doesn’t work fast enough. If you don’t have any experience at growing a company, you should probably seek some professional advice. There are lots of business advisors you could contact for assistance. You would just have to explain the nature of your operation and what you would like to achieve. You then need to let the individual know about any risks you face. They should then come back to you with a plan you can follow.
Not seeking legal advice
Many business owners will have to pay for legal advice more than you might expect. That is because there are hundreds of different rules and regulations for every industry. The last thing you want to do is get on the wrong side of the law. If that happens, you might have to pay astronomical fines to the government. You might also have to spend a lot of time in the courtroom, and that will hinder your operation. With all that in mind, it’s sensible to build a relationship with a respected business solicitor as soon as possible. That way, you will have them at the end of the phone ready to swing into action if something goes wrong. People working in that industry will work hard to avoid court cases in most instances. However, they will perform all the hard work on your behalf if you’re ever called before a judge.
As you can see from all the mistakes mentioned in this article, there are lots of things that could go wrong with your business. You just have to remember that we only know this thanks to experience. That is something young entrepreneurs have to work towards every day. So, don’t feel too disheartened if you get things wrong from time to time. Success lies in your ability to spot those errors and counteract them. Even if your first company fails, you just need to dust yourself down, learn from your mistakes, and start again. The winners in this world didn’t have any particular insights or talents. They are just the people who refused to give up when they failed. Regardless of the finer details, if you keep working towards any goal, you will reach it eventually.
We hope you have learned a lot today, and that our advice will prevent you from joining the list of new businesses that fail this year. Statistics show around 50% of companies last less than twelve months. So, your chances are about even at the moment. Continue your research, and you might just tip the scales of balance in your favor.
Want to learn more?
It’s as simple as 1… 2… 3…
- Just starting out? CLICK HERE
- Been working in your business for two years or more? CLICK HERE
- Try coworking at CoSydney – Check us out! Book a FREE TRIAL DAY
We’re here to help you to take action just like we’ve helped thousands of other entrepreneurs, business owers and creative professionals all around the globe.
Now is the time to let your passion SHINE.
Now is the time to Make Tomorrow Today!
To your success,
Vinh Van Lam & Stuart Horrex
Your Coaches ArtSHINE industries