Getting a business off the ground is a daunting task, especially when it’s a small business that you are investing everything into. While it’s easy to get caught up in the excitement of a new venture, it’s also important to remember (and try to avoid) some basic pitfalls that new business owners often find themselves in.
Don’t wing it.
A good idea is a good idea, but a good idea with a business plan is an even better one! Come up with a business plan that includes a map of what you are trying to accomplish and the realistic steps that need to be taken to get you there.
Talk is cheap in the business world.
Don’t bro code anything — ever.
People are always quick to offer a helping hand, but talk is cheap in the business world. If you are going to rely on someone for a good or service, get it in writing. Whether it’s your childhood friend who’s offering to design your logo for free or your brother-in-law who said he’ll paint your space, have them sign a contract that makes this promise official.
Don’t think you know it all.
Research is your friend. Don’t assume you know everything about your target audience, your market or even your product. There’s a reason companies that put a lot of money in research tend to be more successful. Make sure there is a real need for your good or service in your market. Then, learn the best ways to communicate that your product can satisfy this need.
Branding will define who you are to consumers.
Don’t ignore your brand.
Once you have some in-depth research about your market and target audiences, use it to your advantage to help develop your brand. A brand is so much more than just a company name or logo. Your branding will define who you are to consumers.
Don’t skimp on your marketing budget.
Marketing is essential. No matter how great you think your service or product is, the truth is that it’s not going to sell itself. Talking to a marketing expert or hiring an agency to help you with your marketing strategy will go a long way toward realizing success.
While grassroots marketing campaigns have come back in a big way, you’re still going to need a budget to get some buzz out there, even if it’s just to boost some posts on Facebook.
The No. 2 reason startups fail is because they run out of cash.
Don’t forget to be accountable.
As much as everyone hates to say it, capital makes the business world go round. You need to know how much money you are going to invest, whether it’s going to be enough and how you are going to successfully manage this money responsibly. The No. 2 reason startups fail is because they run out of cash.
The best way to make sure you are being accountable is to hire an accountant. You can’t wear every hat for your business, and this is an area where an expert will save you time and money. You’ll thank them come tax season, which is a grueling time for any new business owner.
