There’s a lot to think about when starting a business. Here are just a few mistakes to avoid at all costs, so that your business gets off to the best start possible.
Failing to educate oneself in business first
Basic knowledge of business is useful to have before getting started. Consider buying yourself a handbook, talking to an advisor or attending a workshop. You could even consider taking a course such as an online MBA degree. Areas such as bookkeeping, recruitment, business law and marketing are a few areas to swot upon.
Doing no market research
Market research can help you to work out what it is your market wants or indeed if there is a market at all. This can allow you to fine-tune your product/service before accepting your first customers. There are many different forms of market research including surveys, focus groups, analytics and keeping tabs on competitors.
Having no budget
A budget will stop you from overspending and getting into unnecessary debt. Before you start spending any money on your startup, settle upon a budget so that you can work within this. A financial advisor may be able to recommend both an initial budget and a monthly budget.
Overlooking important licenses and permits
It could be a legal requirement to obtain certain licenses and permits before starting your business. This could include food licenses and parking permits. A solicitor will be able to guide you through all of these licenses and permits. Failure to obtain these licenses and permits could result in costly fines.
Hiring employees to soon
Unless you’re opening a store or a restaurant, it’s unlikely that you’ll need to hire employees from the start. Hiring employees is expensive and you want to be able to offer them a stable future. As a result, it’s best to wait until you’re getting a good steady income coming in. When business is going so well that you have to turn people away, it’s usually a good sign that employees are needed.
Marketing will help you to gain exposure, but it’s important that you use the right marketing methods. Throwing money into producing flyers and creating internet ads without a strategy is likely to be a waste of time and money. Instead, consider who your market is, where to find them and the most popular marketing channels that they are likely to use. With a good amount of research, you can come up with a clear strategy and guarantee more results.
Skimping on equipment
As a new company, you need to be embracing the newest and best technology. It’s the best way of competing with older more established companies that are likely to still be using older equipment. Avoid cheap, used equipment that is likely to be less efficient.