5 Things NOT to Do When Starting a Business
Deciding to start a business can be a brave, often scary, leap to take. It’s safe to say that such a venture isn’t for everyone; even thinking about starting your own business requires a large amount of grit, resolve and passion. Success and failure often go hand in hand – and as an aspiring entrepreneur, how do you ensure that your venture is geared more towards success?
The best way to get your feet off the ground is to learn from others’ mistakes. Here are 5 things not to do when starting a business of your own:
1. Forgetting to do thorough market research
Entrepreneurs need to make sure that they are well-versed in all aspects of the business. It’s not enough to come up with a great product, entrepreneurs will need to know how to market this product. Simply put, marketing is a key and mandatory part of the start-up process.
Coming up with a product that you think is revolutionary simply isn’t good enough. Entrepreneurs will need to figure out what exactly their product’s USP is, if there are existing competitors, and how they will disrupt the market. In doing so, they’ll need to clearly identify the target market.
Aspiring business owners will need to do plenty of market research and acknowledge that. Like it or not, there will be numerous competitors threatening to sink their product. To combat this, Forbes recommends conducting research trials, identifying the target group demographic and tailoring the business’ pitch to best fit what the market needs. Look at competitors not as cut-throat enemies but as case studies that your business can learn from. In fact, one of the best things you can do is to talk to fellow entrepreneurs and study their successes as well as failures to see what can be applied to your own venture.
2. Not coming up with a solid business plan
A big mistake many entrepreneurs make is the failure to come up with a business ‘roadmap’ of sorts. According to a study conducted by Harvard Business Review, entrepreneurs who devise their own business plans are 16% more likely to have their business up and running more quickly and for a longer time than those that go without a structured plan.
Having a concise and well-thought-out plan can help to transform an entrepreneur’s idea or vision into concrete action, providing much-needed direction for the company in its initial stages. For businesses looking to attain external support, presenting such a plan to potential investors or stakeholders adds credibility to the venture as well. As stated by Huffington Post, a good business plan is key to investors in deciding whether your venture is worth their time or consideration.
3. Not sorting out your long-term finances
It’s always good to have a sizeable amount of start-up capital, but what will you do when that money eventually runs out? It’s critical for entrepreneurs to recognise that no matter how much money you set aside at the start, it will never be enough. Entrepreneur advises any business owner to create a sound business model that will generate constant cash flow.
It’s imperative for business owners to always stay on top of their ongoing financial budgeting. Set certain revenue goals for your business and strive towards hitting them on a monthly basis. As a ballpark estimate, Forbes recommends having approximately 6 to 12 months of living expenses saved, or explore starting the business as a side venture on top of a current job in the initial phases.
4. Not investing in the right resources
Last but not least, one of the fundamental mistakes any new business can make would be to scrimp on all the wrong things. For example, entrepreneurs should never choose to hire cheap labour instead of good labour. Hiring the right labour with the requisite skills and/or experience will only serve to value-add the entire process, making it more smooth and seamless.
Businesses should also make it a priority to invest in the right technology and work with the right partners. Figuring out where to start might be an intimidating process – more often than not, it might prove worthwhile to invest in specialist arms such as Canon Business Services, which provides outsourcing and consultancy services. Take advantage of Canon’s years of experience to transform your business venture into something that will endure through the years. After all, isn’t that the goal of every aspiring business entrepreneur?
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