Congratulations! You’ve made the decision to start a business, and you have all your ducks in a row, or so you think. When starting out in the small business world, you wear many, many hats in the beginning and have a new responsibility to tackle at any given moment. But, you’ve come this far and have worked hard to make your dream a reality. Gearing up for the best years to come, here are some mistakes you want to avoid when starting your own company. We’re all human, things happen, but you want to make sure you’re staying professional and consistent when it comes to being successful in this business world. Here are just some of the many mistakes that can happen when starting a business. 

1.   Not Having a Targeted Audience

Identifying a targeted audience for your business is imperative in order to operate successfully. Without knowing who your potential buyers are, you aren’t left with much support and won’t know who would be interested in buying your products or services. Another problem with that is investors and lenders won’t have a good sense of the target market they’ll be a part of when making this investment in your business. As a business, you have to narrow the path you want your customers to go on—making it a full experience when they decide to shop with you. If you don’t plan for the type of person that is potentially buying your product, you can’t anticipate the future sales your business can make. 

2.   No Clear Plan

A plan for the start of a business is a roadmap on what you wish to achieve within your company. It is also how you see the potential in growth. Without a clear plan, you set yourself up for failure and have difficulty making critical decisions, which can have a lasting impact. By planning ahead of time, you begin to find answers as many questions start to come up. This plan is also a blueprint to present to potential investors and partners to show them the bigger picture of what you have in mind for your business. It articulates to others and yourself the goals, progress, strategies, and what you want your brand to be in the future.  

3.   Incomplete Website

Let’s face it we are living in a digital era where technology and social media rule. Establishing an online presence is the fundamental basis of having a business. You need to be able to connect with your customers beyond word of mouth or by popping up with a storefront. By having a website, you reach more people and allow your business to compete with others online, and showcase your unique product or service that you believe people need to have. Without an online space to establish credibility as a business, you miss out on the opportunity for your business to be seen and become successful.

4.   Rushed Branding

While having a website is one of the first of many steps in order to give your business a voice, branding allows that voice to be heard. Taking your time to make strategic moves in branding is extremely important for any business. You need to establish touchpoints with your customers and define your business. By creating a clear message about who you are and what you want to achieve, customers can make an easy decision on whether or not what you are offering is right for them.

5.   Too Much Inventory  

Excess inventory at the start of a business can soon lead to poor quality products, and most important, wasted money. Depending on the business, you can be looking at damaged goods, or low projected demand. Although this is a quick lesson learned, it can make a difference when it comes to the goals you want to hit when you realize you didn’t think through your inventory. 

6.   Poor Communication

As a new business, you want nothing more than for everyone involved to be on the same page and have the same mission. Poor Communication can lead to low productivity and problems that could have easily been avoided. If you want a certain behavior or action done as a business, clear communication is what will get you there. That is, if you’ve hired the right people to do the job. 

7.   Poor Hiring Decisions

The cost of a bad hire can be crippling to the start of a new business. While time may be ticking and you want to quickly hire someone for the position, the time spent in ensuring you are hiring someone who is fit for the role is much more important than a launch date. It is also imperative for you as the business to convey your brand and work culture to the potential employee. In the same instance, the employee should be providing their own personal strengths and needs to the business. This creates the basis for a sustainable business relationship that will last through any hardships or challenges that come with starting a business. Being patient in your hiring process can pay off. 

8. Not Having a Savings

Ensuring that you have money in the bank can be one of the most significant assets when starting a business. It provides you with the extra support you need to deal with unpredictable expenses and emergencies that can definitely happen when beginning a business. Although each situation can be different, a company with decent savings can be the difference between what keeps you open and what makes you close. Especially in the first year, businesses are subject to costly unforeseen circumstances with limited ways of getting around the problem. It happens. But you can get ahead of it and make sure you save accordingly to keep doors open. 

9.   Outsourcing vs. In-House

With a new business, there’s a lot you probably want to get done, and naturally, you want it done quickly. A common mistake new companies make is over outsourcing when it comes to specific responsibilities. It’s essential to take the time to see if a task can be done in house to save you money and keep both cultures and trust active within your team. Relying on someone outside of your business can create a lousy dynamic within your employees. There’s also the risk of bringing in someone who is unmotivated by your mission and is uninterested in what you are trying to build. By taking all of this into consideration, you can make better business decisions and potentially save money.  

10. Failing to Plan for the Future  

Here today, gone tomorrow. This phrase is prevalent for new businesses that start off hot and end up not being able to resonate with their buyers. With the ever-changing world we live in, research should be conducted quarterly in order to remain relevant in these advancing times. Customers want to be confident that if they are giving you their money, you are providing them with an up-to-date service or product with no hesitation. This requires businesses to plan and be open-minded to whatever is thrown their way, even if it means learning something new in the process.

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