Starting a business can be tough and it’s a nervous time because you’re jumping into unknown territory. Even though you’ve done your research, it’s still a new experience and you have to learn the process as you go through it. Depending on the type of business you start, you’re going to have to engage and deal with customers, marketing, content, products, social media, and other factors in success. However, you can learn a lot from the mistakes of others, which means you try to avoid some costly errors when starting out. It’s important you utilize the resources available to you and learn from them so you don’t have a rocky start when setting up your business.
I went and did some research, compiling a list of effective ways to lower the amount of start up mistakes made during business. The list is from a study conducted by Forbes.com and I’ll narrow down some of the factors below.
Insufficient Research
This has been the downfall for so many businesses and it doesn’t matter what niche you’re starting with. I’ve stated this before and will continue to emphasize the importance of research when starting a business. This was a concept outlined by Ajay Neil from HighQ.com. He said it’s easy to confuse a good idea for a good business so emphasize the importance of execution. The major elements that provide you effective execution are:
- Research
- Forecasting
- Accurate Data
If you can go through making sure all of these are in the positive, then you’ll have a high chance of surviving in your industry. Many people have great ideas but the market simply isn’t looking for it so it’s important to conduct your research, no matter what the niche.
Wrong Model
Many people, when starting out, will have the wrong model or concept in mind. Research should be able to provide insight into your success but you need to pay attention to your audience. You have to find out who your audience is, then shift into what type of products they are looking for. Once you determine this, you’ll be able to find the optimal way to deliver your product to them. Many people make this mistake as stated by Jeff Chen, Cofounder & CEO of Joyride…
“One of the biggest mistakes is chasing after the product mechanic rather than the reason for the product. In other words, the model that worked for movies might not work for books.”
Intriguing vs. Compelling
Every business’ bottom line is making money so it’s important you keep this in mind. When you start a business, people are going to have all types of feedback but take it at face value. Don’t get overwhelmed when people give you positive feedback because these people might still not buy your product. It’s important to know the difference between people who are intrigued by your product and compelled. For example,
Many customers will like the concept, but still not see the value in your product. This means they won’t buy it and not invest their money into it. You have to make sure NOT to become pleased too much by positive feedback because your bottom line should be sales. It’s easy to give positive feedback, but not purchase a product, so many people opt to do this instead. You have to know the difference between intriguing and compelling when setting up your business. Your business product or service should be so compelling, people purchased your product. It’s that simple.
Many businesses become overwhelmed by simple positive feedback and fail to understand their bottom line.
Forgetting Your Purpose
It’s so hard for a start-up to lose track of their purpose. When starting out, you had a clear vision of what you wanted to accomplish and how you were going to do this. You’ve performed your research and know EXACTLY what you need to do to create a super buzz. However, with all these things popping up, you lose track of your end goal. One of the biggest mistakes start-ups make in business is losing track of what really matters along the way. Remember, when starting out, you did your research and based success on certain criteria, so moving away from these will harm your business. When you lose track of your end goal, you’re moving away from your bottom line, which can have negative impact on your employees, success, profit, customers, etc.
I know starting a business can be very hectic, but always keep your objective in mind. Try different things like writing it down on your phone or in front of you in large letters to program it into your mind.