Starting a business is the problematic process and it is more challenging to launch your start-up. Entrepreneurs have to face a lot of challenges building a company from the ground up as they often have little experience in the business world. The daunting fact is that 9 out of 10 startups fail due to the common business mistakes made by most entrepreneurs. I present to you some of the common business mistakes in start-ups.
Mistake # 1: Wrong Team
The selection of the wrong team is the costliest mistake entrepreneurs make. It not only costs you more but also wastes your time and depletes your morale You have to be careful in selecting your team as it is crucial to select people with varying skills and abilities. You should select people who share some common values, ability to trust each other in tough situations, and plenty of past experience.
Mistake #2: Fail To Set Price
Due to prior experience, many entrepreneurs fail to set prices of their products. They don’t have an accurate understanding of cost incurred. Sometimes they either double the price or don’t include the cost of defected / wasted products in the price. An accurate understanding of cost is necessary for pricing strategies. Normally 2.5 times mark-up is considered in setting prices of products.
Mistake #3: Waiting For Perfect Time & Opportunity
Most entrepreneurs think that wait for the perfect time & opportunity to launch their brand or business is the ultimate way to success. Regardless of understanding that the longer they wait, the longer they have the chances to earn and gain profit from their business. Mostly Tech entrepreneurs make this common mistake. They take more time to build the perfect app and invest too much and afterward they are left with no money to sustain their business.
Mistake #4: Lack of Knowledge About Latest Technology
This is the most common mistake. Many entrepreneurs do not have a proper understanding of latest technology and they try to get the advantage of it without having proper and detail knowledge. For example, Mary Juetten the founder of software company Trak light, did the same mistake when launching it. Initially, she identified everything needed to build software but she didn’t know about coding software or web development. That lack of technical expertise can spell disaster.
Mistake #5: Skimping On Attorneys
Legal fees issues, preparation of proper contracts and other legal requirements of any business require the right attorney. Many entrepreneurs in the beginning want to save money on legal requirements and this negatively affects the company. Skimping on legal counsel can be a major liability to your business, especially in a risky industry.
Mistake #6: Low Profile Marketing Strategies
Due to social media, most entrepreneurs think that there is no need of any marketing strategies and they prefer Facebook, Twitter, and any other social media platform to promote their brand or business. The rely on social media to attract customers for free is the common mistake in start-ups. While some entrepreneurs prefer low profile marketing strategies like choosing the cheap marketing ways to promote their business. All this is due to lack of marketing research. Ignoring the most important factor “market research” and then forecasting inaccurate data leads to quick failures.
For any business, the idea is not the only viable thing to launch it. The execution of that idea is important. To execute the business well you need to avoid these damaging business mistakes. The courage to evolve your idea as market conditions is the endemic factor of execution. The key is to learn from mistakes, save sufficiently, and spend wisely.
Jessica Barden is a Marketing Expert at the Essay Help UK firm. She has won many awards for her role as a marketing professional. She is also a freelance blogger for several publications.
I hope you enjoyed this article on mistakes to avoid that could harm your startup. Avoid these errors to increases your chances for success in business!
Interested in more articles about mistakes to avoid in business?
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Best Of Luck In Business To You All!
Michael J. Schiemer of Schiemer Consulting
Digital Marketing Manager & Social Media Professional
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