It all starts from the idea. You get a plan to set up a business, you get your product and a team to make it; but when it comes to managing a young company, you get stuck. Running a business isn’t an easy task, especially if you lack experience and don’t understand peculiarities of side processes like documentation, human resources or funds distributing., Don’t be afraid your problem is unique and insolvable – lots of young businessmen face the same issues. Tracking their mistakes and taking stories of success I collected ten the most important advice to aspiring entrepreneurs how to avoid deadly mistakes ruining a company in the initial stage.
1) Customers first
No matter how great your idea is, it should be relevant to your clients and solve their problems. If you simply listen to your heart and remain ignorant of your client’s needs, you increase your chances to kill your business.
2) Hire less, work more
When you are a startup overhiring is the worst thing you can do for your company. What is the point of employing 30 people when you have tasks only for 15 of them? The more staff you have, the more funds you will spend on the salaries and extra expenditures like additional equipment or furniture. Before hiring one more employee, check if all your staff has a full workload.
3) Spend wisely
That’s the typical mistake of startupers – flushing funds down the drain before the company starts bringing money. They rent expensive offices in the city center, buy designer furniture, get a pet cat and finally find themselves out of money. Better save money for necessary tools equipment or personalized apps built by a custom software development company.
4) Keep management balanced
Do only those things you know how to do. For other things hire experts. In case of young companies, it’s advisable to delegate a part of non-core responsibilities to outsourcing companies. You can outsource software development, HR, accountancy, etc.
5) Slow down and think twice
Waiting for the right moment kills the willingness to start in the long run, but hurrying up kills business instantly. If you do something in business without thinking about the purpose, weighing up pros and cons and counting investments and further revenue, you risk making your company bankrupt even before the real competition with counterparts.
6) Don’t do anything for show
If you ask yourself why you do something (e.g., SMM) and find out that you just imitate your competitors, you’re doing it wrong. Only successful strategies can be copied, but copied wisely. Don’t lose your uniqueness in the chase of revenue.
7) Grow your potential
Even if you manage to catch the attention of your potential customers and arise their interest in your service/product it doesn’t mean they will necessarily buy it right away. Sometimes it takes months to turn an interested person into a client, especially if you sell expensive goods.
8) Develop gradually
Study your market and conquer your niche step by step. If you make products relevant to a local market, don’t try to sell it to a whole country immediately. Expand your selling abilities only when you feel you can invest enough into it. Came up with the idea of one more product? Test how your local clients like it instead of putting all eggs in one basket.
9) Double check and optimize
Shoveling money into PPC and expecting client flow when your website has no buttons or phone number to make an order is a stupid but widespread mistake too. Check your idea on the all the stages and prepare all the necessary features beforehand.
10) Don’t give up
If it’s your first experience in business be prepared to false steps. Nobody is immune to failures. But only those who can learn through errors have chances to achieve success in the future.
Kidal Delonix is a contributor to Mr. Hoffman's blog. The views and opinions are entirely his/her own and may not reflect Mr Hoffman's views.
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