Starting a business is no easy task. It can be a very rewarding one, yes, but it can also be very taxing. The hardest part is getting started. After mustering up the necessary courage to go ahead and put your plan into motion, it would be a shame to see it be dismantled over something that could have been avoided with a little foresight on your side. So this doesn’t happen to you, we’ve compiled a list of the top ten mistakes that kill new businesses – here they are.
Not having a sound plan. Now this doesn’t mean you need to have your entire business and its future planned to the tee. Depending on the nature of your business it may make sense to leave somethings open to debate. However, having some idea about your plan of action going forward is required. This applies to each of your functional areas too, like marketing, finance and so on.
Skipping over research. Sure, research may take a lot of time but it’s completely necessary. Without doing any research, how will you know about the market you’re competing in and the consumers you’re marketing to? Be sure to do research about your market, target audience, consumer preferences and many more areas. This is not something to take lightly.
Having an unclear value proposition. If you can’t clearly articulate the benefits of your business, how will consumers ever know what you’re offering? You want your target audience to understand exactly what it is you’re offering and how it benefits their lives. You can read more about this here.
Overlooking financial requirements. The quickest way to drown a business is through poor money management. You will need money to pay employees, depending on the size of your business, and meet other expenses as they occur. That said, keep an eye on cash flow levels and don’t spend your business funds frivolously.
Thinking you can do it all yourself. This may way work for a while when you first start your business but it won’t always be like this. It’s important to understand your limitations so you can focus your energy where it counts most. For example, you may consider hiring people for tasks you don’t enjoy doing or may not be particularly strong at.
Ignoring what the data says. Don’t let this be you! Remember, numbers don’t lie. You may want to look deeper into the reasoning behind certain data, but surely you shouldn’t ignore it.
Not knowing when to pivot. As much as we want our initial idea to play out, sometimes it’s just not meant to be. However, that doesn’t mean your business has to end there. If you can establish a business model that allows for flexibility, you may be able to pivot before it’s too late. Although, you must also keep your eyes open to signs that it might be time to consider a new plan. It is as much about observation as it is about flexibility.
Unclear understanding of the sales process. Every business owner hopes that customers will come rushing to make purchases upon launching the company. Unfortunately, this is not the case. It takes time for people to make a purchasing decision and it’s vital you understand this. Some products have very short sales cycles, while others are lengthy. If you don’t account for these differences you may run into trouble when it comes to cash flow forecasting and general financial management.
Throwing money at problems. This is never the answer. Too many times, new companies get caught up with the latest gadgets and tech they need to implement. However, more often than not, these investments are unnecessary. When you’re just starting out make sure to focus on what’s important – finding customers and making sales! Until your finances allow for it, stick to the basics and keep costs simple.
Scaling too quickly. It can be exciting to start a new business and wanting to leave your mark onthe world. However, until your initial business has a steady and stable foundation, you should not expand. If you expand too early, you risk running into cash flow problems down the road and not having the necessary infrastructure to support these added operations.
Be sure to keep these tips in mind so you can be on your way to success. Find out all the ways Rich Dad Education can help you reach your goals.
Learn more ny attending our upcoming free interactive Online Training! Register Here VIDEO
Want the live experience? Attend an upcoming free workshop coming to your area! Register Here
Browse through our Rich Dad Education reviews by clicking above!
Founded in 1992, Elite Legacy Education is a recognized global leader in quality financial education. Legacy Education Alliance, Inc. is a leading provider of educational training seminars, conferences and services. Rich Dad Education offers real estate & stock training based on Robert Kiyosaki's book Rich Dad Poor Dad.