Starting a business venture, especially for first-time entrepreneurs, can be an exciting and exhilarating experience. After all, not only does it present us with the opportunity to generate more income, but it also gives us control and freedom over the direction in which to steer our companies. And it is for these reasons that more and more people are giving up their nine-to-five jobs and going into business for themselves instead.
But make no mistake, as starting your own company is no small feat. In actuality, it’s a massive undertaking that requires a considerable commitment of time and effort. As to achieving success, about 20% of startups do not get past their first two years of operations, and over half close down in their fifth year. So, in order to keep your business from being a part of this statistic, here are some common mistakes to avoid, and some tips on how to curb them.
1. Taking marketing lightly
One of the critical aspects of launching a successful startup is effective marketing. When you get right down to it, even the most impressive products and quality services won’t be able to generate the desired sales if no one is aware of their existence. And because of the multitude of accessible platforms available to create exposure and awareness for a business, many inexperienced entrepreneurs make the mistake of taking it lightly. And they fail to secure their target audience as a result.
So never take marketing lightly. Make sure never to skimp out on research to identify your market and study your competitors. Tedious as it might seem, it will go a long way in helping your startup improve its revenue stream.
2. Hiring people on impulse
These days, more and more people are opting to work for startups instead of well-established companies. And for a good reason: not only can it accelerate their careers, but it’s also an opportunity to learn more about the intricacies of starting a business. However, it’s good standard practice to carefully consider the people that you’re hiring. After all, workers are the foundation of any business. And if the foundation isn’t strong, it won’t last.
3. Overlooking insurance coverage
Mistakes are often unavoidable realities in business. There’s no getting around this fact. And to ensure that the impact of these errors is kept at a minimum, it’s a general rule of thumb to secure the right coverage like general liability insurance. It might sound like additional expenditure to some, but you’ll have the financial protection that you need in the event that a problem arises.
Despite its accessibility in this day and age, taking the entrepreneurial road and starting a business is a colossal endeavor that is fraught with many difficulties. But by avoiding many of the common mistakes made previously by business owners, not only will you keep your company from any financially catastrophic issues. But more importantly, you’ll give yourself more opportunities to achieve success for the business.