The 3 Biggest Mistakes Startup Owners Make
When starting your business, you will face challenges and obstacles that will try your willpower and make you wonder what ever compelled you to take on such a difficult endeavor. This is normal. However, how you react to those challenges will determine whether you are successful in your business venture, or whether you will be another tried-but-failed business owner. With that in mind, when investing your time and hard earned money into a startup, avoid making these three crucial mistakes:
Foregoing a Business Plan
Many people assume that starting a business is as simple as having an idea and taking measures to bring that idea to life. While that is one aspect of starting a business, it’s just one aspect. In order to ensure a successful and ongoing business plan in place that addresses your business goals, how you’re going to achieve those goals and who is going to help you achieve them. Moreover, your plan should identify potential customers, who your competitors might be and what your mission and values might be.
Even though you must have a business plan, you should fully expect that plan to change as your vision takes shape and things start to come together. Every entrepreneur will tell you that nothing ever goes according to plan. Anticipate this, and be prepared to handle the deviation with composure. The most successful business owners are able to pivot as the market changes, and are open to a new business idea if their old one is no longer a viable option.
Being Careless With Your Money
When it comes to building a startup, you will need a significant amount of capital for marketing, product or service development and equipment. However, you need to be careful with how much money you spend on what. While it makes sense to invest in a website and business cards, it does not make sense to in a top-of-the-line website or high end business cards. Also, don’t hire too many people before you even have a clientele, and don’t buy the best of the best equipment. All that stuff can come later, when you have a nice cushion for luxuries that you couldn’t afford in the beginning.
Finally, once you do start earning an income, save it. You may be tempted to reward yourself by splurging on a new vehicle or taking a lavish vacation, but running a business is expensive, and you will quickly learn that money may come in fast but it goes out quicker.
Avoid these three mistakes when building your startup and you will be on the right path to success!