A large percentage of new businesses and start-ups will fail within the first five years. But there are a number of strategies that you can utilize as you strive to avoid the most common pitfalls and business mistakes. Consider the following recommendations from CEO Scott Binsack, founder of The Rain Maker and Mansions & Estates International.
Business Mistakes: Don’t Skimp on Your Business Plan
A business plan is really essential for a start-up, not only for presenting to prospective investors, but it also gives you an opportunity to perform some vital research into your business niche and target audience.
Your business plan will also force you to consider all of the essential issues that will impact the company’s day to day operations and ultimately, its success (or lack thereof.) It’s a chance to strategize and plan, which is vital for a new company.
Many first-time business owners are very eager to get started and they skip things that they view as unnecessary — but this isn’t one of those unnecessary items!
Business Mistakes: Being Inflexible
Don’t be rigid and inflexible. A start-up will involve a fair amount of evolution and trailblazing.
When it comes to business, things don’t always go according to plan. Sometimes, you accidentally happen upon a niche or approach that’s more effective and more profitable than your original strategy or concept. So go with it and be ready to bend – that’s what it takes to succeed!
Seize those opportunities to learn and improve too. Criticism can be very valuable.
Business Mistakes: Skimping on Marketing
You could have the most incredible, innovative venture or product, but what good is it if nobody knows about it? Be sure to include a significant marketing and advertising budget as you plan your new venture because chances are you’re not going to have the advantage of word-of-mouth and buzz right out of the starting gate.
Promoting your business the right way is essential for its success, especially in the beginning. If you lack experience in terms of marketing, hire someone who knows what they’re doing as you can waste a lot of money promoting or marketing your business to all the wrong people and using all the wrong avenues.
Business Mistakes: Failing to Assemble a Winning Team
Your team is important. You can’t do it all yourself; you’ve got to delegate. So find others who share your vision and your enthusiasm and move forward together, as a team.
Finding an enthusiastic, positive team is essential for weathering the struggles of starting a new business.
With these tips to avoid these business pitfalls, you’ll be well on your way to success!