Jan 15, 2019
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Starting a new business can be exhausting, exhilarating, and very rewarding. That said, many entrepreneurs will start a business and fail because of many common mistakes that can be avoided with critical thinking and self-reflection. CEOs of extremely successful companies have been kicked out by their board, or they cut corners and were hit with lawsuits. It is important to make strides so that those outcomes can be avoided when you are starting out so that you can grow the best version of your business. There is no way to avoid making any mistakes when starting a business venture, but knowing very common ones might allow you to be prepared or avoid them altogether.
Impatience
There is a certain eagerness that comes with starting a new business. That passion is what allows people to pursue their ideas and take on the risks that come with venturing out on their own, but it can also blind them when it comes to making rational decisions. No one likes dealing with the red tape of trying to get a business off the ground, but cutting corners in areas can come back to haunt business owners later, and sometimes even ruin a business. The best way to remedy this is to do your research and pace yourself. Asking for help or shelling out the money to hire a lawyer can save you a lot of headache in the long run, and will help you stay on the right side of the law.
Money Management
Truthfully, everyone has mismanaged money in their life. Whether you were a kid and that given money but blew it all on candy, or maybe you were a teenager that spent all their savings on a VW Bug (not speaking from personal experience), many of us realize that money management can be harder than it looks early on. But when it comes to starting a business, the way you manage money can make or break you. Spending too much money or spending too little money can really change the outcome and growth of your business. There will always be people who are willing to offer advice, but it is best to go to professionals whenever possible.
Competition and Marketing
You might be invested in your business because you are convinced that your product is going to the best one on the market. It may be true, but thinking that you have no competitors or that you don’t need to spend anything on marketing is a mistake that can hurt you in the long run. Investing in marketing and researching the competition can give you an edge, especially if you are the new kid on the block. Don’t let false expectations hamper your business before it can even get off the ground. Dedicating a portion of your budget to marketing will almost always be a good move, so don’t try and sidestep this important part of starting a business.
Creating, managing, and running a business is very hard. You will probably make mistakes along the way, some might even be out of your control. But how you handle those mistakes will determine the outcome of your business. What is most important to remember is to not be too hard on yourself, because trying and failing is better than not trying at all and wondering what could have happened.