10 Common Mistakes By Small Business Startups
Posted: June 13, 2013 by Alex Chan
Around 400,000 business startups were launched in the US of 2012. Studies have shown that 25% of startups fail the first year. 36% in the second, and 44% by the 3rd. The 4th doesn't look great either with another 37-58% closing shop. That leaves 45,000 to 68,000 remaining after 4 years, with an average success rate of 14.1%. Numbers don't look great, but we do it anyway. Why? For profit, enjoyment, freedom, or any other reason that gets us up in the morning. Before reading what to avoid, you should first review our article on how to succeed in our 10 tips for starting a successful business article. Once you're equipped with tips for success, this article will arm you with new tricks for fending off failure.
1. Waiting To Build The Perfect Product
Everyone wants to start a business by launching something new and amazing. You dedicate yourself to planning the smallest thing, and before you know it, you have missed your chance. Sometimes it is better to start from the bottom and work your way to the top!
2. Hiring Too Soon
Once you open your business, don't get overexcited and start hiring out the easy stuff. Great companies are not made in a day! Hiring someone cuts into your profit. Make your business economically strong and then consider hiring new people.
3. Refusing To Update The Business Model
Every business starts on a set path. Where the company ends up may not be where it started going. What every business owner must realize is that times change very fast. Follow the trends and be a company that follows them or risk getting left behind.
4. Losing Focus
Losing the focus from quality to quantity can have serious negative consequences on the business. Customers stay loyal to companies that put the customers' needs as their top priority. Offer what people came for, and see sales grow.
5. Lack of Funding
In our statistics did we mention most businesses lose money for the first 2 years? Well, they do. Before your business is up and running, are you able to work for "free" for the first 6-8 months? Each step requires funding, research, time, and resources. Make sure you have enough to go the distance.
6. Forgetting to Rethink and Rebuild
Nothing is perfect. If you launch something that needs work – upgrade. Take the time to revise your work and improve the products used by your customers. They'll be happy, and want to spend more time using your products.
7. Not Paying Attention To The Market
The market is a tricky place. One day something is hot and another it is not! Good market analysis is what separates the wheat from the chaff. Follow trends! That is all.
8. Not Enough Branding and Advertising
People need to be reminded how cool and amazing your products are. Content marketing is a very good technique! Make sure you use it. Engage your customers and update them on a regular basis. Social media is the perfect place to start.
9. Fail To Research Competition
It is important to know your competition. If you don't research your rivals before you start, you will probably end up making the same mistakes. Take all the positive lessons they've learned and implement them into your company.
10. Making Things Too Complex
Try and make everything about your company easy and simple. Especially your website! Make is easy for users to navigate, register, and buy products. Over complicating things discourages everyone, especially potential customers.