Starting a business can be incredibly rewarding, but it’s important to note that there are a number of common mistakes that entrepreneurs make.
Avoiding these common mistakes can help you set your business on the right path for success.
So, what are some common mistakes that new business owners make when starting up?
Below are five mistakes to avoid when starting a new business.
Not Having The Right Protection
A common business mistake to avoid is not registering your trade marks or not properly protecting your company assets.
Intellectual Property (IP) is a term used to describe any type of intellectual property that can include patents, trade marks, trade secrets, copyright, etc. These are the things that are unique to your company and represent your brand, which is why it is important to have the right protection.
Companies use IP to protect themselves from competitors using their ideas or products without paying them royalties. IP may also help a company:
- Keep their competitive edge over others
- Protect its investment in research and development
- Prevent unauthorised copying of their product
Additionally, business owners may consult an intellectual property lawyer to file lawsuits against other companies who may infringe upon their IP rights.
No Financial Planning or Advice
Entrepreneurs face various hurdles when it comes to launching their businesses. And, one of the biggest hurdles is raising capital, managing finances, budgeting and forecasting cash flow. This is why you should utilize an expense report software to help you monitor your expenses.
As a new business owner, it is important to have the right financial advice to help manage startup costs, your bottom line, expenses, cash flow predictions and the financial health of your company.
Another costly mistake some business owners make is not registering for the appropriate taxes or lodging their business tax return.
According to a recent report by CBI, up to 38 percent of new businesses fail due to financial reasons.
No Business Plan
Not having a business plan is no way to start your business adventure.
A business plan is like a roadmap, it sets out where your company is going, what you want to achieve and how you will get there.
Your business plan should properly describe the purpose of your company, outline the products or service, provide a competitor and market analysis, identify the target audience and establish any business goals or milestones.
You need to be careful with your business plan, make sure you have a proper strategy and in-depth research to minimise the risk of making common business mistakes.
Neglecting Digital Marketing
Some small business owners and startups see digital marketing as an unnecessary expense, which may be a costly mistake.
Digital marketing may help raise brand awareness, improve your company’s visibility in online search results, increase web traffic and help you gain more customers.
Not Learning From Your Business Mistakes
Starting a business is no easy task. In addition to the initial hurdles of coming up with an idea and getting your business off the ground, you also have to worry about the day-to-day operations of your company and ensuring that you’re making smart decisions with your time and money.
Making mistakes when starting out can be costly, so it’s important to be aware of the most common ones and do your best to avoid them. Of course, some business mistakes may be unavoidable and a mistake is bound to happen at some point.
But, the difference between a company that succeeds and one that crumbles may come down to how well you learn from these mistakes and how many times you make the same mistake.