Every day, thousands of new businesses are born. Only a very small handful, less than 5% in fact, will still be around in five years’ time. Let that sink in for a second—less than 5%.
Thanks to the internet and the huge range of services, platforms, tools, and integrations, among other things, have made it easier than ever for people to start their own business. Whether it’s an e-commerce business using Shopify, WooCommerce, or PrestaShop, or an online marketing agency, anybody can do it.
While running your own business may sound great—escaping the 9 to 5, working on your own terms, and nobody being there to boss you around—it can actually take its toll very quickly. Pretty soon after launching, all entrepreneurs will realize that while owning their own company is great, it takes a lot from you.
There are lots of ways to fall down a rabbit hole when you are launching your own business, and many entrepreneurs do. Unfortunately, not many entrepreneurs find their way out of it and their business mistakes cause it to fail.
4 Common Business Mistakes to Avoid
When your enterprise is young, it is very vulnerable to common mistakes, mistakes that can easily be avoided with some research and adequate planning.
Here are 5 of these common business mistakes that you should avoid if you want your company to be a success.
1. Skipping the business plan
You need a business plan. There is no way around this. Planning may be boring, tedious, and take a long time but it is absolutely crucial to the success of your business. Without a solid plan in place that has looked at areas such as competition, your company’s market potential, and your target audience, you will be working in the dark.
It’s not just a business plan you need, either. What about finances and marketing? These are just two examples of other things you need to plan for.
2. Not setting goals
It may sound cliché bit goals give your business a direction, particularly in its earliest days. They help to keep you on track and visualize success—you should be setting them.
By following the revered “SMART” goal format, you can identify where you want your business to go, the steps it will take to get there, and what it will look like when you have finally reached them.
Constantly review your goals and make sure they are kept up-to-date.
3. Avoiding new, smart technology
As a small business owner, it is easy to think that you don’t need the latest technology and tools. After all, it’s only useful for larger businesses, right?
The right technology deployed in the right way can work wonders for small businesses and provide new opportunities that would never have otherwise been found.
While new technology and tools can sound and look intimidating, you should take your time to learn about them and explore the market thoroughly to see exactly what is on offer.
4. Being scared of marketing
Marketing is a hurdle you are going to have to overcome sooner rather than later. In fact, you should get ahead with marketing before you have even launched.
It is something that comes in lots of different forms—referrals, social media, word of mouth, etc—and it can be difficult to understand. To add to the confusion, it is an area where everybody has a different opinion of what is “right” or “wrong” and there are no rules set in stone for it.
In fact, the right type of marketing for you will depend on your industry and target audience, among other things.
It is important to do your own marketing research (or outsource it!) so that you can find out what strategy will be best for you. With that information, you can hit the ground running straight out of the gate.
Avoiding Common Business Mistakes
These four mistakes are only a few of many (and there are hundreds!) mistakes that you can make as a new small business owner.
Whether you have just had a great idea for your business when you were in the shower or you are already in the planning phase, make sure that you keep these in mind.