Things to Avoid while Starting a Business Startup
Hundreds of startups build every year and most of them are failed to develop the business. The worse part, some of the startups have to close their business after a year or 3 years. If it is lucky, startups can only survive not more than 5 years before finally closed their business activity. What is the problem? You might have done one of the points explained below in which you don’t have to do it.
Be a Leader and Manager as the Same Time
A strong business needs a strong, innovative, creative, and smart leader. You might have those characters to build a great business startup. The thing you have to understand is that as a leader it doesn’t mean that you have to handle everything alone. You can find brilliant ideas to develop your business but you need a manager to manage everything while applying the idea. It is okay to do everything in the first year but it is impossible to use the same method for a long time. In short, you might be a great business leader but it doesn’t mean that you are also a great manager. Hire someone to be a manager otherwise, the traditional system ruins your startup.
Don’t Have a Good Business Plan
It is true that you can do the business first and learn from the experience you have made. But, it doesn’t mean that you don’t have a business plan at all. Remember! Starting a business is not only about preparing the money, products, and services but also preparing the plan. The plan is including the idea, target market, financial, marketing, and many more. It is better to have a business plan first before starting a startup. A business plan is like a roadmap to achieve business goals. This is the reason why you also have to develop or create a new business plan based on the condition of your business startup. It might take time but you have to do it to develop the business for the next few years and prevent bankruptcy in the first year.
Don’t Have Clear Business Goals
Another important thing you need to have before opening a startup is setting business goals. Running a business without goals is like walking without any specific destination. Business goals are the destination you have to achieve. Achieving business goals one by one is the key to survive in a tight business competition. You may write daily, weekly, or annual business goals. You can also include the steps or ways to achieve the goals. When it is ready, you can start to run a business and follow the plan and goals.
Don’t Set the Right Price
One thing you have to achieve in running a business is profit. You can use the profit to develop the startup into a larger business or company. You earn profit from products or services sales at the right price. Just imagine if you are undervaluing your products or services because lack of confidence and fear of failure feeling. The common side effect is that you can sell products and services and even reach the goals but you still suffer from the loss. Before it’s too late, you can check the market price first. Then, compare it with the quality of your products and services. Don’t forget to include all the expenses which will be covered in the price of the products. You may sell the products and services the same with the market price or even higher than the market if it is possible. Don’t sell the products under the market price except for promotion otherwise, you have to close your startup earlier.
Lack of Marketing
It is a must to make your target market notify your business. When the target market knows about your business, products, and services, they will be interesting and buy the products. Actually, marketing is the way to make people or customers aware of your brand, products, and services. A successful startup has great marketing. You can use the power of internet marketing or word of mouth referrals. Nowadays, marketing activity becomes so easy because marketers or startup owners are able to use social media or any online platform to educate and ask them to buy.
Overspending and Under Spending
Overspending or under spending is not good for startups. In the case of overspending, it seems that you are too confident with the startup and spend all your money to build it. You spend the money on everything such as software, equipment, promotion, marketing, and many more even though there are cheaper options. In the case of under spending, it seems that you are too afraid to develop your business even though there are great chances to do it. You may invest in several things but you don’t do it. The point is that you have to learn more about priority and effectiveness in running a business startup. By learning it, you know the time to keep or spend the capital to grow your business well.