10 More Small Business Startup Mistakes to Avoid

10 More Small Business Startup Mistakes to Avoid

What are some common mistakes entrepreneurs make when starting out? Here is a list of ten more of the most common mistakes new entrepreneurs make when starting their business. While mistakes can be our greatest teacher, they can be time-consuming and costly. So here I want to share with you my hard-earned experience and the insight I gained from my own errors in judgment.

1. Making absurd predictions

Is it realistic to get 60 customers in the first 6 months? Or is it more likely 6? Can you realistically sell 3,000 books of your own book in the first year? Or is it more likely 300? Maybe 600 in the second year and 900 in the third year of your book is more realistic? How do other books like yours sell on Amazon? You should do some serious research and try to come up with realistic predictions of how your services or products will sell. If you’re projecting abnormally high sales and profitability, it means you don’t have a realistic understanding of your own business and the market you’re in.

2. Reliance on one customer or one product

That one customer or one product might be enough to get your new business off the ground. But having just one will certainly not be enough to keep your business growing. Therefore, you should constantly try to add different new customers and new products. It is safer for your business to have many small customers instead of one huge customer. Ideally, you should aim to attract a variety of customers of different sizes and industries. You also need to develop different products that can be sold to different customers in different industries. This diversity is what will save your company when market conditions and consumer behavior change.

3. You don’t have a unique selling point

Why will your customers buy your service or product? Why you? Why not someone else? What do you offer that makes your services and products special? What do you bring to the table that others don’t? It is better to have a good answer to these questions before starting your business. Most businesses start up without ever asking themselves these questions. This is a very big mistake. If you want to build a successful business – one you can be proud of – then you need to answer these questions before you start your new business.

4. You’re not doing enough marketing

You can never do enough marketing. As a small business, you will be promoting yourself as much as you are promoting your services and products. It’s not unusual for a small business to spend more time marketing to the owner and building relationships than actual sales. This will help you make a positive impact on your customers and prospects and help them trust and remember you.

5. Lack of adequate initial capital

You should expect that your start-up costs will be much more than originally planned. A one-person small business may have little or no start-up costs. This type of business can become profitable immediately. But if you’re going to need an office, machinery, employees, supplies, etc., your start-up costs can easily jump above what you originally planned. And if you don’t have enough capital to pay those start-up costs, you’ll be prevented from getting past the break-even point.

6. Too much risk avoidance and fear

As entrepreneurs, we naturally try to avoid unforeseen risk. We usually only take risks that are well thought out. But we should not avoid or fear all risks. The real problem is that without taking risk, you cannot take advantage of the opportunities that come your way. You can very simply live a quiet and relatively happy life, but you are unlikely to create anything new and unlikely to leave your mark on the world.

7. Being a control freak

This is not a problem if you are a sole trader. But as soon as you start working with others, such as partners, spouses, employees, and subcontractors, you need to share decision-making power. As the business owner, you will certainly have the final say. And as an owner, your overall vision is most important. But you need to communicate your vision to everyone else you work with so you’re all on the same page. Including other people in the decision-making process and collaborating on ideas will make your business much stronger.

8. Not anticipating your customers’ needs

Anticipating what services or products your current customers will need after your initial sale can significantly increase your company’s sales. It will also create a greater connection between you and your customers. Let’s say, for example, that you install HVAC systems in residential homes. You can easily return each spring and fall to make a tune-up, change filters, etc. on the system and charge $200 for about 20 minutes of work. The customer will thank you for taking good care of their system and keeping it running perfectly. They can see you in person and talk to you. Then you ask them to give your business card to anyone looking for HVAC work in their home. You can keep your customers happy, create an emotional connection with them and go home with an easy $200. If you don’t come back every spring and fall, the customer will have to find someone else to take care of their HVAC system.

9. Believing in the myth of flexible working hours

Starting a business will take a huge amount of time. Even if you start a small business part-time, you will spend a lot of time and effort to get it up and running. But the more time and effort you put into it, the more you will get out of it. So better choose a business that you like to work. The more you enjoy what you do, the easier it will be—even the joy—to spend so much time, effort, and money building your business.

10. Ignoring your customers

This is a big problem for all businesses. But as a small business, one of your biggest selling points should be personalized service. There is always another business desperately trying to take your customers. The moment your customers feel ignored or neglected by you, they will be more open to talking to other businesses. They will feel less affinity with you and your company. Therefore, you need to find ways to create an emotional connection between your company and your customers.

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