Business Start Up: 5 Deadly Mistakes To Avoid
Starting a new business is very exciting process for young entrepreneurs and can bring big rewards if it is done right. What makes some entrepreneurs successful and others fail is the difference between learning from others who have done it before you? Albert Einstein famously said “If I have seen further, it is by standing on the shoulders of giants. Business is about building on what others have done before.
For a start up it’s important to study what others have done before and especially take note of what made them successful. We all make mistakes but some are more critical than others and can shatter our dreams of being a successful entrepreneur. To achieve success, entrepreneurs must build a solid foundation to anchor the business on. Listed below are some of the mistakes to avoid when starting or setting up your business.
Setting and using smart goals
It is very easy when starting out in business to follow instinct and just perform tasks as they come to you. Many people fail in business because once stared they do things haphazardly without setting proper goals. When goals are set it’s easy to know where you are going but mostly importantly you can also set out an action plan or road map to achieving that goal. Young entrepreneurs must set goals, write them down and follow them. The goals set must be SMART to help you measure how you have done with them. A goal can help motivate you towards your final destination of success. To have a real chance of achieving something set a goal and you are likely to succeed.
Recording all business costs
When starting up most people will use free resources like friends and family to help. The Americans say “they aint nothing like a free lunch” somebody has to pay. Accounting for everything is a must to help you with balancing your books and tax purposes. Starting from how much time you spend on the business. Work out an hourly wage rate and add up all hours spent on the business by you and friends even if money doesn’t change hands. Recording all costs will help give an indication of the personnel needs to keep your business going. Planning for recruitment will be easier in the future.
Having a mentor or master group
Starting out as an entrepreneur is not easy and it can have its challenges. Smart entrepreneurs always have people they go to for help when things get confusing or tough. There are two options you take on this one, have a mentor who has had success in business or assemble a group of knowledgeable people to help when you are stuck. Sometimes you need someone to just point you in the right direction and you are off to a winner. These guys become your support network to keep things going.
This is the most important stage after your brainstorming phase. A business plan can be anything from one page to over a 100 pages depending on the type of business. Writing a business plan is the first real chance you get to make sure your business survives. A business plan will show you how feasible your business idea is, and can help you gather everything you need to make it successful. A business plan will help you with your pitch to investors but investors will make informed decisions from a solid written business plan.
Personal SWOT analysis
The biggest hindrance to small business owners is accepting their weakness which has an adverse effect on the growth or success of their business. From the onset the entrepreneur has to perform a personal SWOT analysis. A SWOT analysis will help you improve on your weaknesses and take advantage of your strengths. You will envisage threats and capitalise on the opportunities. With a solid business plan, savvy investors normally invest in the person not necessarily the business plan only. An entrepreneur who is aware of their capabilities is more likely to be successful than one whose not.
The best of entrepreneurs have made massive mistakes but the one thing there are good at is learning from them. A smart entrepreneur will learn from others before him and build on where they left off. Avoiding mistakes as a start up entrepreneur will be a big motivator for you.