When I ventured into business, I started out with a small retail outlet that has grown and given birth to other branches in different locations. I have also ventured into other businesses along my journey.
However, it was not always a smooth ride. I have repeatedly made some mistakes that almost killed my ventures in their early stages.
Looking around, I notice that startups keep making the same mistakes. Sadly, not many of them are lucky to survive as mine did.
I have come up with a list of some common mistakes that kill many start-ups but that can be avoided with proper planning.
Overlooking Marketing
During my start-up days, I ignored the marketing part of the business. I had a belief that marketing wouldn’t bring as many returns as I would like.
Having just a few competitors in my locality gave me the confidence of a guaranteed customer base. When I did my first analysis of my accounts, I realized that business was not doing well.
I had to take a bold step to take up various marketing strategies to attract customers, such as those that agencies like First Page Digital Hong Kong offer to name one example.
Advertisements were my reliable marketing tool. This step paid-off because there was a rise in my sales.
Starting Up Without a Plan
Starting a business without a well laid out plan is the biggest mistake that can be made by an entrepreneur.
The business does not have a specific direction to take and has no goals. Before my current thriving retail business, I had engaged in several ventures, all going south.
The failure was much attributed to a lack of clear plans. Upon this realization, I mapped out a business plan which is guiding me to date.
Setting Unrealistic Goals
At the start of my business, I had a big vision that would guide me through the business journey. I would set goals that were difficult to achieve at the start.
Also, I tended to set a short time to attain these targets. Pessimism became a part of me because I did not reach my goals and at a point considered quitting.
I would advise start-up entrepreneurs to set realistic goals and also allocate enough time to reach their targets.
Owners Thinking They Can Do It All Alone
A big mistake I encountered during those days I was starting was doing all the work by myself. At the start, one can try and do it, especially when there are financial strains.
Once the business is on its feet, ensure you find skilled people to help in the business. For me, the increasing workload forced me to hire employees.
This step yielded returns because there was increased efficiency in the business resulting in customer satisfaction. Always know when to hire (and fire too) to maintain business efficiency.
Hiring Unqualified Employees
This is a big temptation to start-up entities attributed to limited financial resources and a limited understanding of the added value skilled employees bring to the business.
I was a victim of this because I guessed I could take a shortcut and get the same returns. Unqualified employees come at a low cost which will eventually reduce production costs and increase profit.
From my experience, I could term this as a risky action because it will affect the output of a business causing losses the entrepreneur could counter by hiring skilled personnel.
Setting up a Business Without Registration
Newbies in business usually have a lot of information, but sometimes, what they have is not relevant knowledge. One thing I did not know about is the registration of a business and the steps to take.
Authorities were always a stoppage to the business because I lacked the right papers to conduct my business.
After constant disputes with them, I decided to follow the required steps for registering the business giving me a favorable business environment.
Following the right channels saves a lot of time which can be dedicated to growing a business.
Prioritising the Product and Forgetting the Customers
Today, I can confirm that the growth my business has experienced is mainly contributed to by my customers. I did not have this knowledge when starting out.
I found myself emphasizing more on the product side and not considering the consumers of the products. I put strategies on how to increase the quantity without considering the quality customers get.
After conducting some research, I had to take up the customer-oriented mentality. My customers had to get total satisfaction to sustain my business.
From a glance, these might look like obvious and small mistakes. It is, however, astounding how many startup businesses continue to make them and the effects they have on these ventures.