Are you planning to start your own company?
According to study, 8 out of 10 newly established businesses fail in their first eighteen months of operation.
So it means that starting a business is a total risk, nuts right?
But some says it is not that bad. There are plenty of small businesses that grow fast as they face operation challenges.
And we found out that there are common mistakes from entrepreneurs. So in order for business owner to improve their success rate why not avoid these 5 traps.
Five Common Mistakes of Business Owners
1. Starting business alone
Most aspiring entrepreneurs used to find a nontraditional course to success. Normally, they do it depending on their judgment by doing it solely. This idea does not mean that they should start their company solely.
For the record, it pays to have a business partner, not just a partner but knowledgeable partner.
A business partner that is right for you, let us say if you are good in marketing, choose a partner that is good in technology.
Having mixed skills makes market even faster, and even make the company become more popular and attract investors. Let us be realistic here, founding a firm can be emotional.
Sharing ups and downs with many things and how both of you overcome those challenges just for the business to succeed.
2. Compromising talent
Finding someone who has the same vision or who believes in you, joining a company without any proven track on financial resource records is difficult.
At times of trouble and difficulties, you should not hire someone just because he is available and willing to work free.
Getting the right people that will work for your company plays a critical role towards success. There should be a safety net with your employees.
They should qualify company standards, missing this could even take your company down as fast as one to two weeks.
3. Choosing wrong board
Everything should be properly considered from top to bottom, not just the management team but your board also. To achieve success you need people who have financial interest in the business.
You need top board members that have expertise in times of difficult situation. And also having board members with top connection can tap business with fundraising and development.
4. Too much spending
The most difficult part for every entrepreneur is to raise money. Businesses don’t just grow like trees and investors eager to put up their money (investors will not do that until they see a clear picture of them getting profit).
Figuring out how much money you need for you business is not that easy. And whatever estimate you have, it is still not enough. At the beginning you need to raise money and recalibrate to make sure you are not running out of funds.
On your first months of operation, you need to be cautious with your spending so you have a high rate in reaching success than ending up a dry account.
5. No customer focus
The main target of business is customer focus.
You need to disseminate the talk starting day one. As business owner, think customer as virtual member of your operation team and product.
Build users voice in your planning. Feedback is a must and should be embedded on your business operation.
One more thing, “help desk” this is critical so don’t forget this on the plan starting from first day of your business operation.