Startup mistakes: Starting a business is not as easy as you think. Just because you have tested your business idea and found that it has the potential to survive the market competition, it does not mean that you are all set to go.
No matter how good business idea, there is no 100% guarantee that you will succeed down the road. According to statistical data, more than 40% of new businesses shut down within the first two years despite a good business idea. Have you ever thought about why it does happen?
Starting a business is fantastic, but running it successfully is very hard. If you are planning to start business, make sure that you do not repeat mistakes that other entrepreneurs commit. It is the most crucial stage because this decides the framework for the growth and success of your business. It serves as a foundation of your business.
Running an online business requires investment of time and money. All you need to focus on your own business dedicatedly. If you think that you can manage it along with your full-time job, it is not possible. Once you have a business plan, you will be able to research how much money you will need to take it off the ground.
Of course, you must have some savings that you would put toward your business. However, you may have taken on no guarantor loans for unemployed in case your savings fell short. If you do not want to have your money and time wasted.
Make sure that you avoid these startup mistakes.
Undervaluing your products and services
Since you are new to market and there is already fierce completion, you can plan to sell your goods and services at a lower price to pull customers from your competitors. You can say that it is a smart move to change the dynamics of the market, but you will find yourself bearing losses in the long run.
You will end up with excessive amount of frustration, and this will lead to shut down. Even though it seems a smart tactic, it does not drive benefits because customers are already accustomed to buying the same products and services from your competitors.
They trust them more than you because they are older than you. Further, if lower prices can be bait, most of the users will doubt the quality of your product, and the other drawback is you will fail to recover the total cost of your products. It will become hard to manage all expenses of your business.
You will run out of money, and as a result, you will shut down. Setting the right pricing strategy is not easy. Research the market to check how much your competitors are charging.
It does not mean that you will set the same price strategy because you have to consider the quality of your products and the cost it took to come to the market. Whether you are selling less than or more than your competitors, make sure that you neither undervalue nor overvalue.
Avoiding new technology
It is crucial to accept technology upgrades because it takes your business a step ahead. Still, some entrepreneurs, especially start-ups, fight shy of investing in technology because it is a bit expensive, and it doesn’t seem very safe to learn and understand new things.
For instance, various businesses have launched their apps to provide a better experience to users. If you want to launch an exclusive app for your business, you will have to understand how an app works, consult an app developer, set a budget, and so forth.
The other example is some companies are using chatbots to solve customers’ queries so they can focus on core activities. Investing in chatbots seem to be a mammoth task, especially when you resist technology, but Chatbots are improving customer experience and leading to more leads. Of course, the more the users are satisfied, the higher the leads will be. You may be afraid of investing in technology, but you should understand how it can double your revenues.
One of the significant mistakes that start-up entrepreneurs make is they avoid delegation. You may be willing to do all works yourself as this may save your money. However, you will not get the advantage of being the jack of all trades.
If you think that you know everything or you can manage to be multitasking, you are wrong. Effective delegation of authorities is intrinsic to the growth of your business.
If you hire staff to perform tasks like cold-calling, scheduling a meeting with clients, social media promotion and generating the content, you will be able to manage other paramount tasks effectively. You can do how you can provide a better experience to customers and the changes to be made to your strategy to gain the maximum results.
Not ready to accept failure
It is not set in stone that you will not face failure if you have a good business plan. Several factors affect the growth of your business. They can be economical, political, social changes and the change in the competition level.
If you get failed due to any reasons, it does not mean that everything is finished and you cannot grow. Remember that failure is the key to success. A good entrepreneur is one who does not have a fear of failure and learn from mistakes.
If you are running a start-up, make sure that you have a good business plan and courage to take your business ahead. If it seems challenging and tough, do not give up in the middle. Try to overpower your fear and keep growing. You can easily turn your start-up into a brand if you do not make startup mistakes mentioned above.
Not Considering Your Banking Solutions Enough
Starting up a new business is all well and good if you’ve got the capital, the product, and the vision – but something that many new business owners forget to consider is if the sector you are operating in is regarded as high-risk by traditional banks. You may think selling CBD or adult products is legitimate enough (and it is!) but normal high-street banks still don’t see it that way. With elevated “risk” surrounding transactions, these banks can throw all sorts of problems in your way, such as chargebacks or even account freezes.
There are a whole bunch of exciting online banking platforms emerging and growing rapidly, answering these problems that new business owners are facing regularly. Search for a high-risk bank provider, or for an IBAN account to review specialized services for different high-risk sectors. Monneo is a virtual IBAN provider that can help high-risk businesses trade without the friction of old-fashioned banks, the board is made up of some financial giants and they are experts in the game. Many sites offer comparisons for high-risk banking solutions, as one may be better for online gaming or online dating, depending on your company’s needs.
Also read about: Essential Steps to Take While Pursuing Business Technology