Starting a business is a challenge, but there are many areas you can focus on to ensure that your business stays afloat beyond the first year and continues to be successful. We asked several small business owners and executives to share 20 mistakes that new business owners should avoid when starting their companies. According to the Bureau of Labor Statistics, more than 18% of new businesses fail during their first two years of operation and more than 55% of all companies do not survive beyond the fifth year. So how can you successfully launch and run your startup? The COVID-19 pandemic has posed an additional challenge for new business owners.
Safety measures, such as face masks, hand sanitizer, and plexiglass dividers for staff and customers, can be costly. In addition, at the beginning of the pandemic, lockdowns led to a reduction in spending, which proved to be a challenge for small business owners. We reached out to hundreds of small business owners, growth strategists, financial advisors, legal experts and business consultants to compile the biggest mistakes startups make so you can avoid them when starting your own business. If you expect the immediate success of your business, then you're setting yourself up for disappointment. Yes, it's great to have the confidence and drive to want to succeed quickly, but you shouldn't expect these results right away.
It takes a long time to grow a business. It takes even longer to make money with a business. One of the biggest mistakes any entrepreneur can make is to ignore their true passion and simply open a company to earn money. Many times these companies go bankrupt because the businessman can no longer pay the rent. He expected to earn money right away to cover his expenses.
The first mistake that many entrepreneurs make is to look for a “gap” in the market, an unmet need that no one else has seen, or for which the entrepreneur could imagine a solution that no one else has. Not spending enough money (or spending too much) is another common mistake that every entrepreneur should avoid. What if you could delve deeper into understanding the unique 20% of what the most successful companies, like Chick-fil-A, do differently, which gives them 100% better results? In other words, what if we could truly understand what makes certain companies revolutionary and apply those principles to our own organizations? What you need is an outside expert to analyze your business and tell you exactly what needs to change and where you should focus your efforts. When you start focusing on the 20% that makes you unique, instead of the 80% that you have in common with your competitors, you'll start to see a transformative change throughout your company. No matter what field you're in or what type of business you have, it's very important that you understand some of the mistakes that tend to affect so many entrepreneurs in today's market. Finally, and most importantly, it is not at all obvious that the entrepreneur is better equipped (or at all) equipped to meet the need that arises. So instead of studying the mistakes themselves, the most valuable insights can be gained by studying successful experts (serial entrepreneurs) and seeing what they do differently than the average entrepreneur starting out for the first time. Therefore, what experienced entrepreneurs do is focus on the present rather than the future.
If you want to be a successful entrepreneur in today's ever-changing market, then you need to learn to be adaptable. The Internet and social networks are very cheap tools for any entrepreneur and, more importantly, they can be very effective. While most entrepreneurs are fluent in the creative part, they probably lack the legal skills needed to protect their creations from infringements. To avoid this third mistake, experienced entrepreneurs have learned to put themselves in the shoes of their customers and to look at the world from their perspective. As an expert in entrepreneurship and small business growth strategies, I've seen many entrepreneurs make mistakes when starting their businesses.
From expecting immediate success without putting in enough effort or resources into their venture to not understanding their customer's needs or not protecting their creations from infringement - these are all common mistakes that can lead to failure. The key is understanding what makes certain companies revolutionary and applying those principles into your own organization. You need an outside expert who can analyze your business and tell you exactly what needs changing and where your efforts should be focused on. It's also important that entrepreneurs focus on their passion rather than just opening a company for money - this will help ensure longevity in your venture.
It's also essential that entrepreneurs understand how they can use cheap tools like social media networks effectively as well as how they can protect their creations from infringement by having legal skills on hand. Finally, experienced entrepreneurs know how important it is to focus on the present rather than just looking towards future success - this will help them stay adaptable in today's ever-changing market. By avoiding these common mistakes when starting your own business or venture, you'll be able to ensure its success beyond its first year of operation. With an outside expert analyzing your business as well as understanding what makes certain companies revolutionary - you'll be able to create a successful venture with longevity.
