According to Bloomberg, eight out of 10 entrepreneurs who start businesses fail within the first 18 months. Why do businesses fail? Aside from a few other reasons, business failure could be a result of some mistakes from the business owners.
In this article, we are sharing with you 9 common mistakes you should avoid when starting a business. And we hope some of these points prepare you to be better. There’s a statistic out there that says 97 per cent of all businesses fail within five years.
Starting a Business with Wrong Intentions
A lot of times when people start a business, they had the wrong intentions. They only want money, or they just want to stop working on their old jobs. Now, it’s good to want money or fame or to get away from your job, but you have to have a positive connection with the business suitable to who you are and what you can deliver to the marketplace.
But if you want to help people and you love people for who they are, then you will make it in business. So have the right intentions and the directions to do business that will add value.
Wrong plan of Action
Many entrepreneurs have the wrong approach when it comes to starting their business. What you need is a sales and marketing plan, which could be one or two pages at most. It’s meant to detail your action plan for marketing your business and how you’re going to get people to buy what you offer.
Instead of asking yourself, how am I going to squeeze everything into the day? Ask yourself which activities I should focus on the most that will give me the highest reward. If you have the right plan of action, it will take you to where you want your business to go.
Simplifying your business is the key to success. If you want to be a successful business owner, you’ve got to keep it simple. So if you’re taking weeks, months, even years to plan out your business, then you have all these structures that don’t make sense. It’s time to simplify what it is that you do. Only focus on one or two, even three key areas that you need to develop.
No Attention to Sales and Marketing
More particularly in business, you need sales, marketing, branding, negotiation and so many other skills that will allow you to produce on a high level. The low focus at your business marketing can make your business bankrupt. Your priority should be to increase sales of your products with the help of eye-catching marketing.
The smallest business can grow with the right marketing strategies. There are many ways to market your product look perfect. You can run the ads through media or start social media marketing, the more your product gets visible to people the more chances of sales.
Quitting Before Start
There are lots of people who end up quitting with some loss in business. They never took potential actions. In other words, they are yet to build the momentum that will give them the confidence to keep going. No matter whom you are or your kind of business, there will always be challenges and also signs of achievement if you do the right thing.
The reason why people fail in business is that they end up quitting too early. They end giving up on their dreams because they don’t see results in the short term. They believe that in the long term it will never work out.
Lack of Proper Training
So many entrepreneurs try to start a business, but they haven’t developed the mindset necessary to make their business flourish. Maybe they’ve gotten into some kind of problem, and they don’t know how to deal with it. It could be legal, employees or customers related issues.
After creating your ideal business, you must have a great understanding of how to handle issues in business. You need to train on negotiation with customers, employee and target audiences.
Business is a Serious Game
Don’t play it with your friends or family members. Seeking finance too early in business is likely to put you off at first. While most people think that business is a money-making machine, you just put money into business and profit will start rolling. That’s completely wrong. To start a business you just have a mature mindset about reality and demand of the market.
To play the business game you must have the focus and apply the right strategies to boost your sales. Often, business owners, the largest mistakes are researching the market, they find it difficult to get the right market knowledge before investing their idea on a business. Business is like a game the more you practice the more perfect you will be.
Having little or no Investment
Investing less or having less money can also make your business unsuccessful. With little investments, you cannot make a quality product for the market. In business, you receive whatever you invest, for you to make sales you need to invest in the quality of your product. Another point is not investing in marketing, the zeal most entrepreneurs start a business is never the zeal they run it. A business fails due to lack of proper investment in important areas, especially for those that need capital investment for a successful journey.
Also, the more money you invest the chances that your business will succeed. Make sure before you started your business that the required investment to run the business is secured.
No Courage for Business
So many people have ideas circulating in their mind that they know would be successful, but they take no action to get there. While most individuals want to start but don’t know-how, they are either intimidated by the market or their competitors
Or maybe the fear of failure, or they fear the criticism that they might face as they start their business. Either way, you have to overcome that difficulty and decide that you’re going to move forward boldly into the direction of your dream and achieve all the goals that you’ve set for yourself.
Ask yourself the question, what will I produce in my lifetime? From the time that I have right now to the time that I die. What would I invent? And how can I get closer to doing these things? In summary, these are the 9 mistakes you should avoid when starting a business.