Starting a business is no easy feat. There’s so much to take into consideration, and it can prove challenging, even for those prepared for the ups and downs. However, the thought of working for yourself, seeing your ideas come to life, and making your own rules is well worth it.
Why then do so many start-ups fail?
While the answer to that loaded question has multiple facets, one of the main answers is that entrepreneurs often make mistakes. These mistakes can cost them their business before it’s even gotten going, and what’s worse, is in most cases, they can be avoided.
So, what are these mistakes? We’ve outlined the most common ones, so you know what to avoid when building your business.
Not Asking For Help
It’s normal to be protective over your start-up. It’s yours after all, and you can never be too cautious about who you trust. However, very few start-ups have seen success with just one person doing all the work. There’s so much to be done that it can prove to be overwhelming. If only one person is managing every aspect, they’re likely to fall short in some areas where they don’t have the experience, or simply cannot pour enough energy.
Asking for help is key to a successful business model. Knowing which vendors or services to use will go a long way in relieving pressure, and can serve as an excellent start to industry networking. Ask for help from professionals in their field and outsource work wherever possible.
Not Being Able To Adapt
For any business, big or small, established or brand new, being able to adapt is key. Almost every business has had to deviate from its original plan at some point, as nothing ever goes the exact way we plan. The ability to adapt is essential for every venture. It will help carry it through fluctuations in the market and ensure the business can withstand socio-economic changes on every level.
Many of the world’s most successful start-up stories come from business owners who had back-up plans. Odeo first existed as a podcast platform, but it quickly had to pivot when Apple launched iTunes podcasting. Today, that platform is known as Twitter. If Odeo hadn’t been able to adapt, they’d never have achieved global social media success.
Being In The Wrong Location
Location is one of the most important aspects of a business. It’s a key factor, especially for businesses with a strong focus on retail. Once a business is in the right location that’s close to its audience and investors, it’s significantly more likely to succeed.
For example, Rowland H. Macy built a department store in Massachusetts, but it didn’t go quite as planned, and the business failed. He then tried a different location and relocated the business to Sixth Avenue in New York City. This time, the business was successful, and became the retail giant currently known as Macy’s.
Another reason that location is so important has to do with funding. Typically, venture capitalists fund start-ups that are close to where they’re based. This is likely because investors learn about new start-ups through networking with other businesses in their vicinity. Silicon Valley’s booming tech industry is a prime example of this working in action. When locating your business, think carefully about where potential investors could be.
Lack Of A Proper Business Plan
It goes without saying, business plans are integral to successful start-ups. Not having a solid business plan is one of the biggest mistakes that many start-ups make.
The benefits of a business plan include:
- Setting better objectives and benchmarks
- Securing better financing
- Reducing overall risk
- Opportunities to iron out issues
- Help with critical business decisions
- Having a clear plan of action
- Providing a clear guide for service providers
Even as your business evolves and expands, your business plan is integral in ensuring you execute every business development beneficially. Business plans also hold you accountable for reaching any long- and short-term goals you set, and provide a roadmap for success.
Launching At The Wrong Time
When launching a start-up, timing is everything. Certain situations lie outside our realm of control (such as natural disasters, pandemics like COVID-19, or a dip in the economy) but as far as possible, try to control the timing of your launch as best you can. Make sure your business doesn’t risk launching too early, or too late.
If you launch too early, your entire concept may not be received in the way you want it to be.
Consider the following question: Do you have a product or service that people really want, and is it ready to be marketed?
If so, ensure the business is absolutely ready to launch to the public. Nothing is worse than rushing to open your doors and compromising on the quality of your product or service. Remember, you only have one opportunity to make a first impression—make it count.
On the flip side, if you wait for too long before launching, you risk leaving the market open for too long, giving competitors the space to sneak in ahead of you. Try your best to avoid procrastinating and make sure everything is ready to go as soon as the business launches. Establish strict deadlines and stick to them. This is the best way to create a reliable impression on the public who will support your business throughout its run.
Starting a business is not an easy task, but you can make it a more successful and enjoyable venture by avoiding these mistakes. Your start-up is your baby, and you need to do whatever you can to nurture it so it grows and flourishes.