- Leadership in its truest form comes from one’s ability to think outside of the box.
- Hiring the right team will lead to your true success.
- Focusing on building your brand through your local market can help you work out the kinks in your business and business model.
When it comes to starting your own business, there will always be many pitfalls along the way. Stumbling blocks that, if you’re not prepared for, will cause you to stumble and potentially derail your entire entrepreneurial journey. So many people that set out to start their own business end up making common mistakes that are completely avoidable in the scheme of things.
When you’re setting out to create your first startup business, you must take the time to research your market, your business, and the pitfalls and traps that can arise during the entire process. This way, you’re not making the same startup mistakes that many new entrepreneurs are in their journey to create their business and brand.
Today, we want to discuss 7 of the most common and devastating mistakes that you can make with your startup business, as well as 7 tips that will help you succeed.
MISTAKE #1 — Thinking that leadership and management are the same
When it comes to leadership, most people who are just starting their business think that leadership also means managing the situation. Leadership in its truest form comes from one’s ability to think outside of the box. To come up with solutions and new ideas in a flash while always maintaining the vision. The biggest flaw in this is thinking that you can maintain the vision while also executing it all. Please don’t make this mistake, hire someone to do it for you.
TIP FOR SUCCESS #1: Your team is everything.
Hiring the right team will lead to your true success. Understanding that you must have people around you that know how to do something you don’t and empowering them to succeed is the best way to avoid mistake number one. This will enable and empower you to be a great leader and drive your business toward success.
MISTAKE #2 — Don’t wait too long to seek your next funding round
Now that you’ve secured the initial round of funding from outside investors, or even yourself, you’ll be spending time proving to your investors that your vision for the business can be all you picture it to be. The fact is that most entrepreneurs get caught up in this trap of thinking that everything is safe and secure, and then go and rent the most expensive office space and more for their new business. And before they know it, they’re out of money.
TIP FOR SUCCESS #2: Create a business plan and model
And one that outlines your necessary funding levels and goals. Identify the parameters that you reach to trigger the need to start raising a new round of funds. Knowing your business intimately through the plan and thinking of every stage of it can help you bring your leadership to the team and carry them through until the vision is a reality.
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MISTAKE #3 — Launching before you’re ready
Many people who create the concept for their startup feel they need to launch as soon as possible, for fear that someone will steal their idea. The fear of someone else beating you to market for a similar business doesn’t mean you should launch now when you’re not prepared. Don’t go public and seek national attention when you can’t even deliver the inventory to your local city.
TIP FOR SUCCESS #3: Patience and build your brand with care.
Focusing on building your brand through your local market can help you work out the kinks in your business and business model. This time allows you to hit your inventory goals and meet the demands of the market while preparing you for a bigger launch.
MISTAKE #4 – Poor Market Research & Strategy
When it comes to understanding the market, many startups don’t take the time to do the necessary market research. This leads to a poor marketing strategy, which can become a huge problem for businesses just starting. The poor market research they’ve done means that they haven’t clearly defined their target market. This is huge when it comes to the success that every business is hoping for. Knowing your target market is essential because it impacts all of your business decisions.
TIP OF SUCCESS #4: Understanding and defining your target market
Use market research to define your target market and to determine who your potential customers and clients are. Use the data your business gathers in terms of consumer attitudes, psychographics, demographics and geographics to uncover and meet the needs of your customers. What need do you meet? What problems do your products or services solve? Effectively communicate the benefits of your products or services in your marketing messages.
MISTAKE #5 – Waiting to hire anyone
This is a huge one, something similar to hiring the right team, but there are some differences. Many business owners will try to take on everything by themselves and get so overwhelmed that they have to shut down because they can’t keep up. They’ll also believe no one can actually help them or understand how to do the operations they need. This is patently false in the end.
TIP FOR SUCCESS #5: Let go.
Be willing to let go of parts of the workload for your business. Trust that the employee you hire will do their job, and they will. This also frees you up to focus on finding new clients and business. Believe in yourself.
MISTAKE #6 – Not letting go
We’re touching on this one again because it’s one of the biggest, if not the biggest reason that all startups that fail. When you’re unwilling to relinquish hold of handling the entire scope of your operation, you’re going to go under. It becomes too much to handle, and your business is declining where it could be thriving. Not letting go will mean you’re losing your business.
TIP FOR SUCCESS #6: Let go. Just let go and trust your team.
MISTAKE #7 – Not being willing to be flexible
When you wrote your business plan, you started out and not fully understanding your business and what it will become. You created the plan to stick to the vision, and many entrepreneurs feel they must stick to that same vision at all costs. This leads to the death of their business and the vision itself. They can’t see the way through the problems, only creating more.
TIP FOR SUCCESS #7: Embrace being fluid
Be flexible and realize that the original vision for your business only strengthens when you’re willing to adjust and change course as your business grows. There will always be failures, but it’s how you come out of those that will prove your growth over time. Success doesn’t come without failures along the way.
We hope these mistakes and the tips for success associated with them have helped you learn ways to grow your business and be on your way to creating a startup that succeeds.