Although there isn’t a business on earth that hasn’t made at least a few mistakes when first starting out, the important thing is to learn from those mistakes. Most are mistakes you can’t really afford to make again, but if you look at them as stumbling blocks, they can provide a learning experience to help you grow going forward. Here are four mistakes start-ups are likely to make and the key is not to make them again.
1. Don’t Think You Own the Market
If there is one thing in common to most start-ups, it would be that fact that they are excited about what they feel they have to offer. To them, they are offering something new and heads above what is currently on the market, and so they assume there is no real competition out there. Get that thought out of your head from the very beginning! If you can think it, so too can someone else.
Just because you don’t see any competition, it doesn’t mean it’s not out there, so marketing would be your best way to overcome this stumbling block. Assume the competition is fierce and you can devise a marketing campaign that will knock them out of the running!
2. Relying on Conventional Payment Options
Sometimes, you really do have a novel idea that will set the market on fire. However, someone else may also have a similar product or service in the works and you want to beat them to the punch. If you rely on the conventional way of ordering and paying for materials you will be using to build products or services, you could be unnecessarily delayed.
By the time conventional money transfer hits your supplier, it could be three to five business days after which your order is processed and shipped. Instead, why not seek a faster payments service like AccessPay through which your supplier gets the payment within hours and your order can be processed and shipped the very same day? AccessPay can have your funds transferred to the supplier within hours, not days, so don’t make this mistake if you are looking to hit the market first.
3. Failing to Hire a Team
Sometimes,in an effort to cut costs, entrepreneurs forego hiring professionals with experience. Instead, they rely on friends and family to fill key spots in the fledgling company. This could be one of your biggest mistakes of all. Is it worth it to pay a smaller salary (or none at all!) to the detriment of your bottom line? Sure, you will have lower overheads, but you will almost certainly realise a much smaller amount of profit. As well, those laypersons you’ve incorporated into key positions could also make grave errors, which could quickly put you out of business or in trouble with the taxman. If you want a start-up with stellar growth, be prepared to hireexperienced peoplefor the team.
4. Failure to Write and Follow a Sound Business Plan
Most people look at a business plan as a means of procuring financing or funding. While it is true that lenders will want to see your business plan, there are other reasons why you want to have a well-written plan. This is your roadmap to success and, as such, you need it to work your way from step to step to ensure everything goes smoothly. Without a business plan, you may be running your new company in a totally haphazard manner and that will slow you down unnecessarily while you stop to see where everything went so wrong.
Again, humans are prone to err but that doesn’t mean you need not worry about how many mistakes you make when starting a new venture. The fewer mistakes you make as a start-up means there will be fewer you need to correct!Instead of hurrying to hit the market with your product line or services, take the time to do things right the first time. Yes, there may be competition out there, but the thing that sets you apart will be the fast and efficient way you fulfill orders along with reliable and courteous customer service. No one is perfect, but the fewer mistakes you can avoid while starting up, the easier the process will be.