If you are getting ready to start your first business, you are no doubt feeling excited about the whole process.
Nevertheless, you are probably a bit nervous and overwhelmed too. After all, there is a lot to take in, and you will undoubtedly be learning on the go a bit as well. Mistakes are expected along the way, but if you can minimise these, you will definitely give yourself a greater chance of success. So, with that in mind, read on to discover some of the most common mistakes people make when starting a business so that you can avoid them.
Thinking that having goals and a plan are optional
If you start a business and you do not have a roadmap for direction, you will quickly get lost. It is so important to have a plan, which documents what you need to accomplish and what you want to accomplish, as well as developing tactics and a strategy regarding how you are going to get there.
Forming your company incorrectly
In order to start your business properly, you will need to submit your company to Companies House, and you will need to have everything approved and ready to go. The best way to avoid a mistake happening during this process is to use a professional service such as the one provided by Your Company Formations. Not only will this ensure that you do not make any mistakes during the application, but most professional services will guarantee you a quick approval as well so that you can get up and running in no time.
Failing to set up a business bank account
This is undoubtedly one of the biggest mistakes that new entrepreneurs make. If you combine your business and personal finances, this will lead to a great deal of confusion. It can cause even bigger problems if you end up getting investigated by HMRC for any reason. Not only will this help you to fulfil your legal obligations, but it will make your finances a lot easier to manage too.
Not understanding technology
In the current day and age, technology plays a massive impact with regards to the way in which businesses operate, irrespective of the industry they are in. If you don’t make an effort to understand technology, you are going to find yourself at a significant disadvantage. Technology cannot only help you to run more efficiently, but it can enlighten you to various trends and insights so that you can make more informed decisions too.
Waiting for perfect when good will do
If you have an amazing idea, it is natural that you are going to want to present it to the world in a perfect state. However, the longer you take to launch your product, the longer it is going to take for money to come in, and you could find your business coming to a halt. You need to know when is a good time to go for it. Sometimes realising the most basic version of your product is a good move. You can then build upon it, and release a more advanced and expensive version.
Not checking to find out if you are legally permitted to use your business name
You will quickly find yourself in legal hot water if you infringe on another business’ trademark. You should never start using a business name on your marketing collateral, be it your social media or business cards unless you have verified that someone else has not taken it. You can easily search online to find out whether the name is available.
Having a ‘build it and they will come’ attitude
Building a great product or providing an excellent service is only half of the battle. After all, you could have the best product in your industry, but if no one is buying it, you are not going to get very far. This is especially the case in the current day and age when you consider how fierce competition is, and how many marketing platforms are available. You are going to need to do all in your power to ensure your business stands out from the crowd and attracts customers. Marketing your offerings, branding your business, and networking are all critical components that cannot be overlooked.
Trying to run before you can walk
A lot of new business owners fall into the trap of trying to do too much too soon. It’s not hard to see why this happens. After all, you are excited. You have big plans and you want to achieve everything at once. However, it is important to remember that you are in this for the long haul. You need to pace yourself. If you don’t, you will run through your resources rapidly, and you will soon burn yourself out both physically and mentally.
This post simply would not be complete without mentioning bad pricing. This is something that a lot of entrepreneurs get wrong. In most cases, they price their service or products at a rate that is way too low. The reason behind this is understandable: you want to give people a reason to choose your business over other businesses in the industry. However, by pricing your service or product so low, you are saying that this is all it is worth, and you are cheapening your brand. You need to price your service or product for what it is worth.
So there you have it: some of the most common mistakes people make when starting their first business. If you can stay away from the blunders that have been discussed above, you can give yourself the greatest chance of a successful and hassle-free introduction to business life.