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Launching your own business is a lot of things – fun, exciting, nerve-wracking, adventurous.. but a simple costly mistake can derail your business before you even get it off the ground.
Building from scratch with a limited budget doesn’t leave much room for error or failure and it might seem like the odds are stacked against you.
BUT THERE’S HOPE!
A great way to increase your chance of being successful is to avoid the usual pitfalls that entrepreneurs fall prey to. Simple, right?
I get it. It may sound ridiculous.. but you can actually learn a lot from others who have totally flubbed and lost thousands. As a smart business owner, you definitely want to look into it.
Here are 5 common mistakes you NEED to avoid in order to get started on the right foot:
Not Having A Good Enough Reason to Start
Do you have a valid reason to start your business?
If you think about it, I’m sure you can come up with dozens of reasons NOT to do anything, especially if you start thinking about all the challenges you are going to face.
So what do you do?
You need to find that definitive “why” that will outweigh any “but” you might think of.
Yes, you will have challenges. Yes, they might be many.
Your vision shouldn’t be one of those challenges.
It must be what
- drives you
- gets you up in the morning
- gives you peace of mind to deal with the issues that will inevitably pop up
Assuming Banks Will Throw Money At You
Before I say anything, I just want to state that I’m not a loan expert nor do I have any experience in any part of the financial niche. What I say here is what I’ve been told and/or an opinion. Please do your own research and don’t take financial advice from anyone but a trusted financial professional.
That being said, it’s Reality Check Time.
“According to published in 2019 by the Small Business Administration (SBA), about twenty percent of business startups fail in the first year. About half succumb to business failure within five years. By year 10, only about 33% survive.”
(Source: ZenBusiness Blog Post)
Those stats alone are enough to make you want to run screaming in the other direction.
Needless to say, banks aren’t exactly YAY about funding new biz ventures. You’re probably going to be asked to put up collateral (meaning whatever you put up becomes property of the bank if you default on the loan).
Some suggested options to finance the business through:
- personal savings
- credit cards
- selling off assets
- taking out a home equity line of credit
No one can make the decision for you so it’s up to you to decide if you want to self-finance or take on more debt to get the ball rolling.
Assuming People Will Just Discover You
Potential clients and customers are not going to automatically find you.
You’re going to have to learn marketing and sales so you can get your product in front of the right people.
They are most likely already purchasing from your competitors.
You’re going to have to learn how to get into their orbit and pull them towards you.
No Clear Exit Strategy
Before you take to the seas on your biz voyage, you need a life boat.
Somewhere down the road, you might want or need to toss your biz overboard.
What’s your plan for that? Setting up the ability to disembark without needing to don a life vest and swim to shore is a good idea.
It’s not easy to sell a business and even a smaller percentage will be worth the hassle.
Not Getting Support When You Start Out
Your people might not understand why you would take such a risk.
It would be great if your partner and/or family is behind you. All of those around you will be affected by your new venture.
- Get-togethers might be missed
- Working late might happen frequently
- Working often is pretty much guaranteed when you’re starting out
Yes, getting your new business up and running will be challenging.
Think about the incredible rewards and keep your eyes on the “whys”.
With some proper planning and foresight, you could earn far more money than you ever dreamed and possibly spend less time working than you would at a conventional job.
Success isn’t going to be easy.
Try to avoid these common mistakes and you should be off to a great start!
-> 100+ Content Marketing Trends and Predictions for Success in 2022 Post on Content Marketing Institute
Journal Your Way to the Life, Business, and Income of Your Dreams
Plan out your business through in-depth journaling. Three sections, each with their own:
In order for your business to be successful, you need to get into that mindset.
This pack will help you!