Things To Do to Fail Your Business
Having a plan and then being disciplined to execute it is a big part of starting your business. It's not always easy to be part of a startup. Sometimes, it requires just submitting yourself.
This includes taking steps to avoid common errors made by new entrepreneurs. Here are nine common mistakes to avoid when starting a business. Or to follow - if you want to fail it. So read it and make your decision!
1. Spending too much or not enough
Money is likely to be a major concern for a new entrepreneur. Cash flow before launch is expected to be very low, so saving and making money will often take precedence over all else.
We see two types of mindsets among entrepreneurs starting out: "You must spend money to make it money" and "I'll only spend what I can to have decent cash flow." For example, for the “hire test taker” business investing too little is dangerous, because cheap staff will make not that great quality. Also, it’s bad to invest too much, because you can’t put at stake more than you can lose.
These attitudes can lead to serious health problems if taken to extremes. You should spend your startup money wisely but not be afraid to invest in quality people and products. This will be a good investment for your long term.
2. Put your product first, and people second
It is crucial to have a customer-first mindset when creating your product or deciding on your business model. Many new entrepreneurs are too concerned with making money, which is understandable. But they neglect the essential ingredient of a sustainable business: having loyal customers who will continue to buy your products over time.
Being a new entrepreneur is not an easy task. Mistakes are a part of the journey. However, you don't have to copy the mistakes of others!
3. You think you don't have any direct competitors
New entrepreneurs can get so excited about a product or business that they think there is no competitor or that their product is superior to those of their competitors that they are in a different category.
It's rare that you have no direct competition. Unless you have a new product, someone already has market share. You should do your research to learn more about these companies and how your business can stand out.
4. Cost is a key factor in hiring decisions
Although it is directly related to number 1, this is important enough to be mentioned separately. It's tempting to cut corners when funds are tight. This strategy is costly in the long-term.
Consultants and employees at low cost are often unreliable, inexperienced, or unskilled.
5. Setting unrealistic goals
Entrepreneurs can become so obsessed with their "big idea" that they forget to have a plan. You need to set realistic goals and reachable goals if you want to succeed.
Set both short-term and long-term goals and be specific. Do not just say "I want $1 million this year." Instead, set a realistic goal and determine the steps needed to achieve it.
6. Marketing is not something you should be thinking about
It is common to believe that "if you build it, they'll come." New entrepreneurs often share this belief. They believe that their products have so much potential that they can rely on word of mouth and free PR.
The vast majority of startups will have to invest heavily in marketing. This could include SEO, content marketing, and PR. Look at the marketing budgets of your competitors and think about how you can be competitive and different.
7. Too small margins
A healthy profit margin is crucial to your success. It will make your life much more difficult in the future. Customers won't be happy if you raise prices later.
Look at your production and operational costs and see how flexible they are. Are you able to reduce these costs in the future? To offset these costs, you can choose to increase your profit margins now.
8. Do it all by yourself
It's easy to believe that everyone else can do the job better than you. You are the only person who knows your products well and has the passion to see the business succeed. You can learn more before doing something, but it’s time-consuming. Assuming you
This isn't just a recipe for failure, but it can also significantly hinder your success. A mentor or consultant who is knowledgeable and experienced can offer you an objective view of your market and business.
9. Fear of "what ifs"
Only those who dare fail greatly can ever achieve greatly. Starting a business is daunting and not for the faint-hearted. While it is normal to be afraid of rejection and failure, allowing yourself to become paralyzed by fear can severely hinder your ability to move forward.
Recognizing common fears can be a great first step. It will help you feel more secure knowing that others have been there.