Launching a business is exciting and all-consuming, so it is easy for new entrepreneurs to make amateur mistakes. All it takes, though, is some self-awareness for small business owners to avoid the pitfalls of the executives that came before them.
Entrepreneurs typically make six common mistakes at the onset of a new business venture, and this blog will discuss these downfalls and the remedies for any hiccups that startups might face.
One of the most common mistakes in building a new business is misunderstanding the industry that you’ll be entering. The first step to fix this would, of course, be to conduct market research. Your efforts as a business owner shouldn’t stop there, though. Not only should standard research be carried out, but entrepreneurs should also touch base with the industry and its community before entering the market. Whether the business owner might already have job experience in the field or plans to take on responsibility in that community, it is important to gain exposure to the on-goings of the industry to better know how to properly conduct business, get familiar with industry standards, and build connections along the way.
Speaking of connections, new entrepreneurs often have so much confidence in their product or service that they simply expect clients and business contacts to come to them. Thus, they may neglect networking or marketing and rely on the cliche that “if you build it, they will come.” This is a monumental mistake. Even the largest companies focus on outreach through targeted marketing, improving their Search Engine Optimization, and paid advertising. The money you spend on marketing not only draws potential clients to your business, but it also attracts potential business partners or hires. Don’t put marketing and outreach to the wayside, but prioritize casting your net.
When starting a new business, entrepreneurs often are eager to hire staff too quickly so that they may flesh out the office community. While having employees is important to building a company, it is crucial to hire the right people for the proper amount of time or money. Hiring employees at a shotgun rate makes room for lots of mistakes, such as: hiring the wrong person for the job, hiring too many employees, hiring someone full-time that should have been part-time or contracted, and numerous other hiring blunders. When setting out on a new business endeavor, don’t pull the trigger too quickly when selecting your staff.
Once you have hired your employees, you must keep two things in mind regarding business conduct: do not micromanage and do not be primarily project driven. Being caught in either one of these mindsets could be detrimental for your new business for a plethora of reasons, but the most disastrous setback that could occur from falling into these two habits is that you’re suppressing your company’s potential. When you don’t delegate and trust your employees, you don’t give them the space to grow and prosper to make your product or service better for your clients, and when you are solely project driven, you lose focus on your vision and the big picture for your business. Nothing is more dangerous than being narrow-minded, and lacking trust and vision in the workplace leads to failure.
These are just six common mistakes made by some business owners when just starting up their companies. If new entrepreneurs keep a few things in mind, though, they may avoid these drawbacks and smoothly transition into a successful business. Before setting out on a new endeavor, understand the industry before hitting the market, reach out to clients and contacts through networking and marketing, hire staff smartly, delegate what you can, and think about both the everyday business projects and the big picture. Follow these steps and be well on your way to being a strong business owner.