Starting a business can be a thrilling and exciting experience. It can also become a living nightmare very quickly. If you want to make sure that you fall into the former category, then here are some top tips that will help you to establish your online presence while also avoiding some of the top mistakes that a lot of new business owners make.
Not Planning
If you don’t feel the need to plan anything to do with your business then you aren’t going to get very far. It’s so important that you have some guidelines to work by, so that you can make the best decisions and so that you can attract investors as well. There are so many online tools that are designed to help you with this, so do your research and also make sure that you have a business plan.
Not doing Market Research
So many entrepreneurs start a business based on what their friends and family have to say. The problem is that they aren’t going to be the ones who are buying your product. Your customers are, and if you want to appeal to them then you have to make sure that you have a well-defined target market. The best way for you to do this would be for you to conduct market research, and to also use secondary sources too. This can include census data and even focus groups. By doing this, you can then identify exactly who is going to be buying from you, what they want, and how they want it. It also helps to invest in a UX research platform too.
Choosing the Wrong Type of Business
Did you create a sole proprietorship by chance? Or did you choose to form a limited corporation because that seems like the standard way to do things? Either way, you have to make sure that the business structure you have reflects the type of business you want to create. You also need to understand the legal risks and implications of creating that type of business too, so that you don’t get tangled up in red tape later down the line. If you want to help yourself here, then it helps to work with an attorney and an accountant. They can then take into consideration any future goals that you may have, and they can also help you to choose a business structure that works for you.
Waiting Too Long Before Hiring Someone
Think about it, are you trying to save money? Or are you just against delegating? Either way, if you wait too long before you hire someone then you’ll end up either limiting your success or hiring someone who is not qualified for the job just because you’re in a rush. To get around this, hire a friend, or even a freelancer to help you out during the first few months of your business. The more you do this, the easier your job will be and the more connections you can build.
Having the Wrong Team
As mentioned above, waiting too long to hire someone can have a detrimental impact on your company. On the flip side, hiring too fast can also be an expensive mistake. When you do hire someone, you need to do it strategically. Establish an interview process, and know exactly what you’re looking for. When you do meet someone who looks like a good fit, take a moment to find out if they align with your company culture as well.
Not having a Website
So many new businesses don’t think that they need a website. This is a huge mistake, and it’s the equivalent of not putting a sign up outside your new store. If you are not thinking about starting a website because you think it’s too expensive then you’ll be glad to know that a lot of hosting companies will host your site for free, at least for the first few months. It’s also possible for you to design your site yourself, to cut down on cost even more.
Not Seeking Financing
It can be hard for small businesses to get the financing they need. The whole process is time-consuming and frustrating, but that doesn’t mean that you shouldn’t be trying to seek it out. If you want until you desperately need the money then you may be forced to settle for an option that is less than ideal, and you may be paying higher interest as a result. The solution here is to try and stay on top of the cash flow you have as much as possible. You also need to have an ongoing financial forecast too. When you do this, you will be able to spot any financial crunches that may affect you in the future, and you may even be able to remedy them before they hit your business.
Under Pricing
If your prices aren’t high enough for you to make a good profit, then your business will slowly fail. It doesn’t matter how many customers you bring in either because it will never be enough. If you want to price your business fairly then you need to study the prices that other businesses are offering, and you also need to calculate how much you need to charge to make a profit. When you have these two numbers, you can then work out a fair price for your customers. Undercutting other businesses rarely works, so don’t focus on that as your only pricing benchmark.
Agreements
Whenever you land new clients, or when you go into a partnership with someone else, you have to make sure that you get an agreement in writing. The last thing that you want is to get overly excited and jump right into business. You should also note that a handshake or even a casual email doesn’t constitute as a contract either, so make sure that you take your time and plan out exactly what your partnership or relationship involves. This will help you to avoid any potential lawsuits in the future and if something goes wrong, you have something to back up your side of the story. There are plenty of websites out there for you to use if you want to download a contract, so don’t be afraid to use them.
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