If you’re ready to turn your vision into a reality and trade in the nine to five for being your own boss, starting your own business could be the right move for you.
According to the Bureau of Labor Statistics, approximately 20% of small businesses fail within the first year. Being aware of and avoiding some of these common pitfalls can help your business to grow, while saving you time, energy and resources.
In this article, we’ll explore some of the mistakes to avoid when starting your own business, giving you the greatest chance of success.
Not Making a Business Plan
Having a business plan in place can help you to clearly define your short and long-term business goals and objectives. Without a solid plan in place, it is difficult to measure the performance of your business and determine what areas need addressing or whether it can continue to operate.
A good business plan should include, amongst other things, key performance indicators (KPIs) that will help you know if you are on track to meet your goals, cash flow projections, a sales forecast and budget.
Undervaluing Your Product of Service
When it comes to pricing your product or service, it is important to factor in all of the costs of production and to carry out thorough market research to identify other similar products or services on the market to determine the right entry point.
Avoid giving too much away for free or offering excessive discounts in order to attract a customer base. It may take some time, but setting a balance between promotions and profit is key to ensuring a successful startup.
For advice on setting up your startup, you can consult an Alabama business startup attorney.
In the digital age we live in, any business owner must take advantage of technology when it comes to matters such as marketing, supply chain management, communications or simply social media.
Relying solely on traditional marketing methods, for instance, rather than incorporating digital marketing strategies into your marketing plan could risk your business being left behind by the competition.
Know Your Customer
Before launching your product or service it is essential to have carried out research to identify exactly who your customer is.
Knowing your target audience will allow you to customize your marketing efforts ensuring your message is more likely to be received and your product or service purchased. This valuable information will also allow you to involve your customer base in any new initiatives or products that you are developing by gauging their feedback.
No Unique Selling Point
Your Unique Selling Point (USP) is the essence of what sets your business apart from the competition. It establishes how your product or service directly addresses the needs of your customers in a way that none of your competitors are doing.
For instance, are you offering a solution to a problem which no one else is addressing? Are you able to deliver a product faster than anyone else on the market? Without something unique that makes your proposition stand out, you risk being lost in the competition.
Avoiding the five pitfalls which face a startup set out in this article you can ensure your business will get off to a successful start.