Most businesses fail in their first year. If you’re planning on building a business empire, you need to start off with a bang. Fortunately, this guide will show you the mistakes you can’t afford to make at the start of a business.
No Business Plan
A business plan isn’t just for banks and investors anymore – it’s also a great way to keep your staff on track. Writing down exactly what you want to accomplish this quarter, this year, and beyond is a real motivator. If you don’t know where you’re going or how to get there, something is bound to go wrong.
Hiring in a Hurry
It’s tempting to hire someone quickly when you need help. It’s hard enough to start a business – adding the extra stress of training new employees can be too much to handle at times. But don’t take shortcuts on your hiring process – hiring the wrong person for the wrong role could set your business up for failure.
Skipping the Legal Registration
When you’re starting a business, do it the right way and register with your local government. If you don’t, you could be held liable for damages to any person or organization as well as be fined. This can mean losing your home and savings as well as jail time if serious damage is caused. Registering also makes doing business easier if you want to expand later on.
Doing Everything by Yourself
You’ve got a good idea, and you know how to execute, but why should you do everything by yourself? Delegate your work and learn to rely on others. Not only will this reduce stress, but it will also allow you to focus on the bigger picture. Even if you don’t trust other people or think they need guidance constantly, you’ll be surprised how much easier it is to accomplish more by dividing the work.
You may have a good idea and a great team, but you need the money to actually make it work. If your business plan doesn’t include all expenses, you could be in for some nasty surprises down the road. You should start getting quotes from all potential suppliers to give you an idea of your expenses. Most services will provide free quotes. For example, if you need a quote for eBay shipping, you can go to Shiply.
Wasting Money on Unnecessary Things
You should always think about the end goal and how you can minimize costs. You might want to invest in a new website or an expensive trade show, but what if those things don’t actually work? If it doesn’t improve sales or help your bottom line, it’s probably not worth the money. Start small and work your way up.
Underestimating the Importance of Digital Marketing
Some entrepreneurs believe that they don’t need to worry about digital marketing when starting up since they’re already succeeding in the offline world. But if you want to expand your business and take your brand offline, you will need to develop an online presence first. If you’re not doing SEO, Facebook ads, Google+ Local, or LinkedIn company pages, you’re missing out.