It’s estimated that up to 20% of new small businesses fail during the initial two years of opening. About 50% of businesses won’t make it past the fifth year. With these types of sobering statistics, you may wonder: how can you launch and run your startup business? Start by considering the common mistakes small business owners make, and take steps to avoid them. Keep reading to find out what they are.
Failing to Create a Business Plan
Having a business idea is great; however, you’ll never know if it’s a good idea unless you create a business plan. The primary purpose of a business plan is to figure out if you have a viable idea. While creating this document is time-consuming and requires a lot of research, you’ll save money and time down the road if you invest time in this now.
Not Preparing to Fail
You should never be afraid to fail. In fact, failure is the key to your overall success. Jumping into what you fear is beneficial for the future of your business. How you start again after failing, and the mistakes you make, are keys to long-term success.
Not Doing Something You Love
It’s important to ensure that the business you start is something you’re passionate about. However, there are many people out there who love things they’re not good at. If you want to start a business, do something you love and can do well.
Not Being Organized
Getting and staying organized is an essential part of running a small business. Chances are you’ll have many things going on at once, so keep track of what you need to do and when. When you know your priorities, you can avoid getting sidetracked and losing productivity.
Not Conducting Market Research
More and more people who start a business do so without conducting market research. Take time to test your services and products first before starting a business. If you fail to do this, you won’t know if enough people will buy what you’re selling to make a profit.
Not Having a Productive Work Area
If you run a business at home, you need to design a home office optimized for productivity. Be sure to implement ergonomic elements, such as a comfortable chair, invest in a headset (preferably with a microphone) so you can focus on what you’re doing, and buy equipment that helps you stay organized, such as file cabinets.
Not Knowing Your Target Audience
Another common startup mistake is failing to take time to understand your customers. Take some time to see who will be interested in what you offer and figure out what they want and what their pain points are. This can help you create an effective marketing plan.
Are You Ready to Open a Small Business?
Several mistakes may occur when opening a business. Knowing what they are will help you avoid them and achieve success.
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