Over the past three decades, an average of 20% of new businesses failed within the first year, according to the U.S. Bureau of Labor Statistics. That statistic could stop you in your tracks before your business gets off the ground, but there are steps you can take to help boost your chances of success. Here are some of the most common startup mistakes to avoid.
1. Not Having a Plan
When you get excited about a business idea, it’s tempting to jump in right away. But just because you’re passionate about your idea doesn’t mean there’s a market for the business. Doing thorough market research and competitive analysis upfront will give you a sense of your potential success.
Taking the steps to do a business plan will give you a sense of how much you need to get your business off the ground and operate it for the first few years.
2. Underestimating Your Capital Needs
When you’re writing your business plan, it’s tempting to overestimate your first-year revenues. Even if you’re entering a market with high demand, it takes time to build a brand and attract a steady stream of customers. Be conservative with your estimated revenues, and calculate inflation and other factors into your expenses. Then you’re more likely to be prepared for slow periods.
3. Not Understanding Your Market
Market research is part of any solid business plan, and it will give you ideas to promote your business and build brand recognition. Dive into this part of your business plan so you know what problems you’re poised to solve for your customers. Then you can build your marketing plan around how your product or service meets their needs.
4. Not Considering Your Customers
You spent time getting to know your customers, and need to listen to them. When you’re passionate about your business, constructive criticism can be tough to hear. But your customers will help you tweak your products and service to best meet their needs, helping you attract even more customers. Be open to feedback.
5. Going at It Alone
Being a one-person show seems like the easiest way to launch your startup, but consider having a business partner or two to help with different details. If you’re trying to do it all alone, you may be wasting valuable time on accounting, marketing, and other tasks that take you away from perfecting your product or service. Delegate these roles to people who are good at them. You can focus on making the best product or service possible, and your team can grow the business.
Let a Business Consultant Help You Launch Your Startup
You don’t have to go into business alone. Hire a business consultant for startups to help you with the process. The consultants at NeONBRAND have experience in planning, marketing, business strategy, SEO, and more. Take advantage of our experience to help define your mission and think of marketing strategies to make your new brand stand out.
Contact NeONBRAND now for more information.