As new entrepreneurs, there are many pitfalls when starting out with a new business but the good news is many other successful people have gone before you and already learned the hard way.
To help you out we have compiled a list of the top five most common mistakes which all new entrepreneurs should avoid, which hopefully will help you to navigate your business journey more easily.
Lack of Knowledge for New Entrepreneurs
Too many new entrepreneurs jump into a business without doing the groundwork initially. It’s important to understand the industry which you are planning to set up your company in, from the inside out.
Ideally, you should have experience of working directly within that industry. Have a mentor who has a lot of knowledge and can help and support you. You can’t get the information you need just from reading about the industry, you really need to live it.
Not Keeping Track Of Your Finances
For our friends at Crunch, a provider of online accountants; it is important to keep track of your finances to make sure your business is on track. Keep your accounts updated regularly and don’t forget to track income and outgoings every month.
You need to pay yourself from your business as well as your staff but it’s also important to keep track of payments coming in and importantly, any payments which are due but haven’t been received yet.
Failing to Seek Help
When starting out with a new business it can be very exciting and very tempting to do everything yourself but this is one of the most common mistakes which new business owners make.
If you can get a great team around you it will help your business to have new input and creative ideas outside of your own. They will also help you to grow your business steadily.
New entrepreneurs should get help in areas they are not an expert, for example, marketing, sales, and accounting. This frees up time to actually get on with running the business.
It’s best to avoid relying on friends and family as that can strain relationships and lead to problems. It’s important to hire a good team around you from the start.
Failing to Market Your Business
One of the fears of new entrepreneurs is often that someone else will steal their idea if they put it out into the world, so they then fail to market it properly. If you don’t put your idea out there, no-one can buy it and without customers, you don’t have a business.
It might be that someone else does steal your idea but if it is unique then you should have it legally protected and seek help to get this arranged. It shows that your idea is worth pursuing as well.
You need to have the confidence to go out there and promote your business aggressively, to make sure your customers know about it and why it’s different. After all, if you think about how many similar products are on the market, for example, all the different cars you can buy, it proves that there is room for more than one as long as they are marketed differently.
Not Having a Mentor
When you are starting out you will need to be learning lots of new skills, jargon, and ways of doing things, which are all unknown to you so looking for a mentor who works in your industry is the ideal.
Trying to find your own way in the business world without any advice could find you in all kinds of problems, particularly if you end up making serious errors like failing to meet regulations because you weren’t aware of them.
The mentor will also help to advise you on the best way to grow your company as well as with your professional growth and is someone to lean on when you want to make decisions you are not confident about.
Starting up a new business is an exciting time in anyone’s life and it can be tempting to try to do everything yourself but this can lead to committing some of the most common mistakes which entrepreneurs make.
Seeking help in the form of experts, a team around you and a mentor are key for any new entrepreneur to ensure their business gets off the ground and grows in a steady and consistent way.
While it can be tempting to hide your new business idea under a bushel so no-one steals it, if you want to be successful it’s important to have a strong marketing strategy to get your products or services out into the market place so that your would-be customers and clients can find you easily and make the best use of your business.
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