Ten Common Errors When Starting A New Business

7 Aug

Congrats on your new business.  This can be the beginning of the most amazing and fulfilling period of your career.   However there are some common errors you need to avoid.  In their blog “Ten Mistakes To Avoid When Starting A New Business”, wix.com provided this list of (10) most common mistakes new entrepreneurs make and should avoid:

1) Not Researching Your Target Market – You need to know their habits and behavior as consumers. The more you know about the people you want as your clients, the more focused and cost-effective your marketing plan will be.

2) Sketchy Business Plan – You must have some type of financial forecast for expenditures, an initial marketing plan, a breakdown of your target audience and your competition, and most importantly some idea of how you plan to be profitable.

3) Getting Loans from Friends and Family – If you have a great idea and a well-organized business plan, you should be able to receive loans from institutions that specialize in these matters. Do you want to risk the relationship with people that you love? Be smart and resist the temptation, even if they offer.

4) Expecting Immediate Profit – New businesses usually take two years to become profitable. Make sure you have enough capital to carry you through, because in the beginning you will mostly be spending money, not making it.

5) Not Focusing on the Customer – You need to focus on offering solutions.  That is where your real profit lies. If your business provides something of substantial value you will get loyal clients that happily recommend your services.

6) Disregarding Controlled Testing – The only way to find out exactly what works for your business is to plan, test and analyze.  Do this in a controlled fashion and on a small scale. Don’t blow all of your investment money on random advertising or mass marketing. Test out different strategies on a small group and obtain feedback before you make any major move.

7) Relying on Your Own Legal and Accounting Skills – Do not trust yourself with something so critical as your own business. Experts are considered experts for a reason

8) Trusting Verbal Agreements – When money is involved, you need to have a written agreement to secure your interests. Contracts are not just a formality. When you sign one, make sure you actually understand and agree with its content.

9) Trying to Do Everything Alone – There are so many things to look after with a new business. Even if you’re planning a small operation, you will find yourself in need of assistance – even on a part-time basis. Seek out people whose abilities balance out yours, so that you can focus on developing your ideas and making deals.

10) Sacrificing Personal Relationships for the Biz – Most entrepreneurial efforts require around the clock attention, and can strain family and close relationships if you allow them to. You need the support of your loved ones, so don’t neglect them. Maintaining a healthy private life is crucial for your well-being. If you don’t, eventually, your business will also be affected by it.

You may read wix.com’s full article here http://www.wix.com/blog/2013/07/common-business-mistakes/

 

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