10 More Mistakes to Avoid When Starting a Small Business

What are some common mistakes entrepreneurs make when starting out? Here is a list of ten of the most common mistakes new entrepreneurs make when starting their business. While mistakes can be our best teacher, they can be time consuming and expensive. So here I want to share with you my hard-earned experiences and insight I gained from my own misjudgments.

1. Make absurd forecasts

Is it realistic that you can attract 60 clients in the first 6 months? Or is it 6 more likely? Can you realistically sell 3,000 books from your self-published book in the first year? Or is it 300 more likely? Maybe 600 in the second year and 900 in the third year of your book is more realistic? How do other books like yours sell on Amazon? You should do some serious research and try to get realistic forecasts on how your services or products will sell. If you forecast unusually high sales and profitability, it indicates that you do not have a realistic understanding of your own business and the market you are in.

2. Trust a customer or a product

That unique customer or product could be enough to get your new business off the ground. But having just one certainly won’t be enough to keep your business growing. Therefore, you must be constantly trying to add a variety of new customers and new products. It is safer for your business to have many small clients rather than one giant client. Ideally, you should strive to attract a variety of customers of different sizes and industries. And it should also develop a variety of products that can be sold to a variety of customers in different industries. This variety is what will save your business when market conditions and consumer behavior change.

3. Not having a single point of sale

Why will your customers buy your service or product? Because you? Why not someone else? What do you offer that makes your services and products special? What do you bring to the table that others don’t? You better have a good answer to these questions before you start your business. Most businesses start without even asking these questions. That’s a big mistake. If you want to build a successful business, one that you can be proud of, you need to answer these questions before starting your new business.

4. Not doing enough marketing

You can never do enough marketing. As a small business, you will market yourself as much as you will market your services and products. It is not uncommon for a small business to spend more time marketing to the owner and building relationships than it does actual sales. This will help you make a positive impact on your prospects and clients, and help them trust and remember you.

5. Lack of adequate initial capital

You should expect your start-up costs to be much higher than what you initially planned to spend. A small one-man business may have little to no start-up costs. This type of business can become profitable immediately. But if you are going to need an office, machinery, employees, supplies, etc., your start-up costs can easily exceed what you initially planned. And if you don’t have enough capital to pay for these start-up costs, you won’t be able to break even.

6. Avoid and fear too much risk

As entrepreneurs, we naturally try to avoid uncalculated risks. We generally only take risks that have been well thought out. But we must not avoid or fear all risks. The real problem is that without taking risks, you cannot take advantage of the opportunities that are presented to you. You can simply live a quiet and reasonably happy life, but you are unlikely to create anything new and are unlikely to make your mark on the world.

7. Be a control freak

This is not a problem if your company is sole proprietorship. But as soon as you start working with others, such as partners, spouses, employees, and subcontractors, you must share the decision-making power. As a business owner, you will certainly have the final say. And as an owner, your overview is the most important thing. But you need to get your vision across to everyone else you work with, so everyone is on the same page. Involving others in your decision-making process and collaborating on ideas will make your business that much stronger.

8. Not anticipating the needs of your customers

Anticipating what services or products your current customers will need after their initial sale can dramatically increase your company’s sales. It will also create a stronger bond between you and your customers. Say, for example, you install HVAC systems in residential homes. You can easily return each spring and fall to make an adjustment, change filters, etc., on the system and charge $ 200 for approximately 20 minutes of work. The customer will appreciate that you take good care of your system and keep it working perfectly. They can see you in person and chat with you. Then, you ask them to give your business card to anyone looking for an HVAC job in their home. You can keep your customer happy, establish an emotional connection with them, and come home with an easy $ 200. If he does not return each spring and fall, the customer will need to find someone else to take care of their HVAC system.

9. Believe in the myth of flexible hours

Starting a business will take a great deal of time. Even if you start a small business part-time, you will spend a lot of time and effort getting it started. But the more time and effort you put into it, the more it will get out of you. Therefore, it is better that you choose a business that you like to work for. The more you like what you are doing, the easier it will be, even making it a pleasure, to spend so much time, effort and money building your business.

10. Ignore your customers

This is a big problem for all companies. But as a small business, one of your biggest selling points should be the personalized service. There is always another business desperately trying to get its customers. The moment your customers feel ignored or neglected by you, they will be more open to talking to other companies. They will feel less affinity for you and your company. Therefore, you must find ways to create an emotional connection between your company and your customers.