We all know that setting up a business is fraught with risk, yet there are many things that you can do to minimize such risks and with so much competition, carving out a market share can be a real ordeal. Assuming you have already done some extensive market research to establish a demand for your products or services, here are a few common mistakes to avoid when setting up a new business.
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1. No plan –
Prior to launching your enterprise, it is essential to draw up a comprehensive business plan. You need to spend a lot of time on this; your plan should include a general overview of the business, a vision and mission statement, start-up costing, and a good marketing plan. This document would typically be 25-30 pages long and any potential investor should get a clear picture of what you are about after reading your business plan.
2. Lack of funds –
Don’t think you can wing it on a few thousand dollars; it only takes one unexpected cost to pull the rug from under your feet and running out of money is the number one reason for a new venture to fold. Crunch the numbers, come up with a figure that will set things rolling, and add around 40% to that and you are somewhere there or thereabouts. You should have access to extra capital should the need arise; liquidate some of the equity you have in your home.
3. No IT infrastructure –
It is critical that your offices have a good IT foundation; something the leading Washington based managed IT services provider can handle. A few wireless routers and some structured cabling and you’re good to go and migrating all your business data to the cloud leads to a higher degree of efficiency. Forget cellphone networks, all business communication should be via VoIP platforms, which offer real-time video and reasonable cost; ask a local provider for a free demo of a VoIP platform, which uses the Internet to send and receive data.
4. Blanket advertising –
This is not the approach to adopt, rather you should talk to a leading digital marketing agency and they can carry out an online audit to see where you are in terms of a digital profile. The SEO technicians can optimize your website for Google searches and a targeted campaign that includes social media will generate web traffic; identify your target groups and find out where they go when online and they are the platforms to advertise on. Here are a few great tips for the new entrepreneur.
5. Poor management –
The business needs firm direction and a strong leader and in the absence of such a person, there will be no common goal or teamwork. Every employee is a tiny cog in the machine and in order for your organization to be efficient, every player must be totally onboard.
There are a lot of free resources from the US government about setting up your own business and you may even qualify for financial support, after all, this is the land of opportunity!