People enter into business to make money or profits. Business is, therefore, an activity to make one’s livelihood and involves setting up an organization to produce or buy or sell products or services. Building a business is not a very easy task and if you are an entrepreneur you would make mistakes along the way. You learn from these mistakes and try to avoid them in the future.
“You only have to do a few things right in your life so long as you don’t do too many things wrong.” These words of Warren Buffett tell us one simple truth. Avoid mistakes or wrong decisions and the right decision will bring you success. The following 15 mistakes you have to avoid when starting a business.
1. Wrong choice of Partner
If you are going it alone this issue does not arise, but if you require higher investment you may need a partner to support the business. The choice that you make is critical for your business. Be very careful when you make this choice. The person whom you choose should be able to take up the responsibilities alone and possess the skills to run the business. Most importantly your vision should match. Give this issue very serious thought before you make the decision. There is always the possibility of your partner separating as time goes by.
2. Starting Business without any Market Research
Whatever business you start, you should know the pros and cons of it and study its market potential. Thorough market research will give you a clear picture of how you can handle the business. The rule is to test your products or services first before you venture into them. Your idea of how good your product is need not necessarily match the view of your customer.
3. Starting Business without Planning
Planning is a very vital aspect when you start your business. Planning not only includes the way you operate but also the kind of infrastructure you require. Your focus should be on how to operate and what infrastructure you require.
4. Starting with an I-know-everything attitude
If you are just stepping into the business world, this I-know-everything attitude will bring you down to your knees. Business is all about learning and maturing from what you have learned. This means that if you have experience in running a business or if you are a novice taking your first step, you must use every opportunity that comes your way to broaden your knowledge.
5. Not willing to change
Many businessmen have very rigid ideas about how they are going to run their business. They are not willing to change according to the changing times. People change, their habits change and this is shows in the way they do their purchases. This change is bound to reflect in the way you conduct your business. In a highly connected world, these changes occur at a faster pace and we should be prepared to embrace these changes.
6. Not understanding your Strengths and Weaknesses
Business growth depends upon the rapport you create with your customers. This means you should know your strengths and weaknesses and be prepared to work on your weaknesses. Only then can you set a growth path for your business.
7. Putting too much emphasis on growth
Many businesses have failed because they focused only on growth and forgot to address another important aspect namely the quality of your service and customer satisfaction. If these two aspects are neglected your business is bound to fail.
8. Expecting potential customers to find you
Today’s business environment is bustling with many businesses that actively encourage customers to associate with them. This is the age where you have to be where your customers are. It is your responsibility to find your customers.
9. Downplaying the importance of Technology
You are living in a connected world that depends tremendously on technology. If you refuse to understand the importance of technology and how it is going to shape your business, then you are bound to fail in a highly competitive world.
10. Underestimating your Competition
A proper study of the competition is always helpful when you start a business. If you are the kind who ignores competition, you are inviting trouble. Once you have all the information about your competition, you can plan your activities accordingly. One aspect connected with this is market saturation. If there is a saturation of companies marketing the same product, then give serious thought to this aspect. This leaves you with a small portion of the pie in a highly competitive market.
11. Avoid doing what you Love
People may advice you to do what you love. This may be ill-conceived advice as it is always better to do something that you are talented and good at rather than something that you love. In all probability, you may not be good at what you love. So be very judgemental about this aspect.
12. Starting a business without adequate investment.
Most businesses will not make profits as and when they start. Making profits is a long drawn process and companies may take years to see a reasonable profit. This means you should have enough funds to manage till you reach a healthy stage in business. Always be prepared for such eventualities as only then can you succeed in your venture.
13. Not taking your business Online
The Internet has brought tremendous changes in way we do business. We measure market acceptability in terms of how well you are visible online. More and more people now are searching online for things that they need, and if you are missing from this search you are missing a large chunk of customers. Even if you are not having a website, you should have a presence on social media like Facebook or Linkedin. This gives you a better chance for success.
14. Adopting wrong Marketing Strategies
This is a common mistake among entrepreneurs who feel that they have a great idea but fail to realize that it does not suit the product and the current day marketing scenario. You should give this aspect very serious thought before you venture into the business. The guidance of an expert could be useful to avoid this mistake.
15. Fear of Failure
Many entrepreneurs have fear of failure and this prevents them from taking risks. If you plan to become a successful businessman, you have to be prepared to take risks. Mind you, the chance of the risk taken becoming successful is not guaranteed. If you fear failure, then you are bound to fail in your venture. Be prepared for failures. Only then can you achieve success.
GetifyHR started as a Payroll Outsourcing Services provider and is today widely accepted in the industry for its excellent service and support. By integrating HR Outsourcing Services, we achieved greater acceptance and today offer services like attendance Management, Leave Management, Statutory Compliance Services, EPF & ESI Registrations, and Task Management Services. At every point in our growth, we have avoided making mistakes that could hamper our growth. Today we are one of the leading players in the industry.
The above 15 mistakes are the most common mistakes that people make when starting a business. With better clarity and focus on what you have set out to do, and by avoiding these mistakes you can become a successful businessman.