Article Contributed by Alexis Thompson
Most business startups usually fail because of a lot of reasons not shared to the world. In this article, we will tackle five reasons or mistakes that a startup entrepreneur should not commit to be successful.
1. No commitment to do the “dirty work”
Starting a business as an owner is not just about performing the planning, controlling and marketing but it must also include operating on the actual tasks at hand. You need to be doing the everyday general tasks yourself that need to get done. Hiring people to do them for you or leveraging on others’ skills is not highly recommended because in that way, you won’t get much exposure and grasp of how to be at the forefront of your business.
When you’re planning for the concept of the business, you must also note and be prepared to set business appointments with clients and vendors, order supplies, manage bookkeeping, file and sort out legal documents, answer phone calls, check and reply to e-mails, and other procedures. If you can’t handle these day-to-day business activities, you might not be able to handle the whole business confidently and well.
2. No fighting spirit
One week you’re excited and the next week you’re not. Sounds familiar? If you let the ship sink, it would definitely be at the most bottom of the ocean. Remember, there are many other competitors in the market and if you’re one who’s quick to succumb to failure, you won’t realize and meet success. In the business world, you should be fast to adapt to changes and fight barriers that might cause your startup to fail. Likewise, if there are negative comments about your offerings and services, don’t take them for naught and be down; rather, keep a positive spirit, learn from the past venture and continuously improve for things to get smoother.
3. No defined product or service line
The trouble with most startup entrepreneurs is that they are too excited to offer so much products or service that will cater and satisfy a whole range of different markets. By doing so, they do not really have a target consumer that they should focus on. Too much diversification and offering too many varieties will only make the market confused and unsure of the business’ competitive advantage.
Startup entrepreneurs should decide to meet the needs of their primary target market first and just bring seasonal products or add more to the line when they get success in their initial launch of business.
4. No consideration of consumer choice
Startup entrepreneurs nowadays are sticking to the philosophy of following their passion in building a business. Yes, the saying that goes “Do what you love and love what you do” may be correct and fine but should not be taken lightly. Also, joining the hype or whatever is currently trending is not the good way to go. As your business is going to be your source of income, you should also think of the consumer and not only yourself. Completing the steps to build a business might be easy but analyzing how consumers are reacting or responding to it is a lot harder.
As a startup business owner, you should be more sensitive to the market conditions, customer choices with regard to demographics, location, economics, etc. The key is to understand your customers and not just do “what you love to do.” No, it doesn’t work that way all the time. This is the real business world and not your playground, Kiddo.
5. No budget plan
When you don’t have a budget plan for your startup, the tendency is to spend more. If you have a startup business and more so if it’s your first, you might put a lot on the line—your money, your parents’ money, loan from the bank, raid from your friends and other sources—thinking that the more investment or capital you place, the more income you’ll get in return. This should not be the case; rather, you should provide just enough capital to run the business, keep your overhead costs low and then provide some more only if needed. You should be able to circulate the initial amount of money and spend it wisely.
Starting a business is something serious and probably is one of the hardest things you can ever do because of unknown risks and uncertainties. The bottom line with a business startup is to put everything in black and white, plan first before implementing and stay motivated. A business majestically planned, managed and nurtured is a business that is on its way to success. And nothing is more gratifying than feeling a sense of winning from a battle in a challenging war.
About the Author
Alexis Thompson is an alumna from Martin College Australia, a former Mountain Backpacker and a 26 year old mother of 2 daughters, Sophie and Rhian. She is into almost all types of Music especially The Fray and Hillsong. She also has a passion in Singing and Scrap Booking. Follow her escapades on her Twitter.