Friday, 30 November 2012

Business Errors to Avoid While Starting Up Your Business.

It is not unknown to many that failure is a risk one has to take in venturing into any business. But it can be avoided if you become aware of the common blunders entrepreneurs make in starting up. There are aspects that must be factored in to make sure that you find success in your first attempt at this endeavor. So let me give you 5 mistakes to avoid in starting up a business.

1. Failure to Measure.
You need to make sure that you have fully understood what you are getting yourself into.
mistakesAssess well your business capital and funds, costs, time, competition in the same industry, your market, etc. before plunging fully into the business scene. There is wisdom in the saying that “you cannot manage what you can’t measure.” So make sure you have more pros than cons as you begin setting up.

2. Operate Within Capital.
 In businesses there are economic realities and that includes expenses. But too much of it will kill your business before it is launched. There are fixed costs to consider, yes, yet anything apart from operational costs, like rent, salary for the staff (if you need any), electric bills, insurance, and other preset expenditures you can do without. Check if your capital funds can cover that thing you want to spend on. For example, spending money to put up a huge billboard of your startup company is not sensible at all. Be frugal and creative. Find other ways to promote your business without spending way out of your budget or capital.

3. Wrong Company Structure.
You need to recognize that for any business to flourish it needs to be founded on the right company structure. There are three kinds of business set up: sole proprietorship, partnership and corporation. Know ahead which set up you prefer. If you want to sell pre-loved items or second-hand products, you can go at it as a sole trader. While partnership can be beneficial too, you need to gauge if the enterprise you are starting up needs partnering. Many businesses close down because of partner issues. Determine the kind of business you have and set it up in a structure that will work best.

4. Underestimating Your Competition.
Sometimes even if the business has great potential, it shuts down because they cannot content with their competitors in the industry. Research how your competitors function, find any weaknesses vis-à-vis your company’s strengths then build on that, and distinguish your unique selling point that you can develop. Identify the competition so you would know how to compete, else your business will have a slim chance to survive. closed business
5. No Marketing Plan.
Businesses need to have a good marketing plan. Confirm first if your product or service has a strong market in your area. Enhance the niche you have by creating strategies for people to know you and your company. It does not necessarily need to be expensive (remember mistake #2?). For your start up business to succeed, people has to know that there is a new business opening up and create enough curiosity for them try it out. Take advantage of the social media channels and make interesting videos of your company. Work out your connections and ask friends to try your product or service or give out samples and let them promote for you. You may also do the traditional method but make sure you have weighed the costs well. Just be sure that you have a fine marketing plan that you can work on and develop. Your start up business will find success if you have carefully mapped out a strategic plan that is feasible. You need to be aware of these errors when creating your start up business plan. Make sure that you factor them in so that you will be able to grow the business that you have started by avoiding them. Consider a careful study of your market and wise handling of cash flow and look ahead with caution. Do not be hasty but be confident. With thorough planning and preparation, your start up business will definitely turn out well.

Author bio: Celina Conner is a Yoga Instructor, a holder of a Marketing Diploma from Martin College Australia and a mother of a beautiful daughter, Krizia. She has a passion in cooking and formulating vegan recipes.Follow her adventures on her Twitter.

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