Bureau of Labor Statistics released a report recently that 50% of small businesses fail within the first year of startup. 30 percent of those that manage to pull through the first year don’t survive past the second year of startup.
What is the probable cause for this problem?
The answer lies in startup. You need to be very careful with how you set the wheels of your business enterprise. You cannot afford the mistakes associated with starting up a business. Some of those mistakes include;
1. Failing to Hire a Lawyer and an Accountant
Hiring a lawyer may seem expensive when you are launching your business but if you know the risks associated with a business startup, you would realize the importance of hiring one. There are a lot of laws and protocol governing business startups that need to be followed; the main one being tax laws, which require the services of a good lawyer.
Accountants too are important for your business. They take care of all your paperwork and file arrangement. It can be tricky to juggle paperwork and other core areas of a business startup therefore, having an accountant takes away the burden.
For a business to really get off the ground, it is crucial that you stop whatever you are doing and concentrate all your efforts on your business startup. Most of the people I know launch their businesses while still employed. They fail to realize the amount of work needed to be put in. You can perform the planning and looking for capital while doing something else but once you are ready to take the leap, be sure to put in 100% of your time.
3. Banking on Your Business Idea Only
It isn’t enough to just have the business idea. There is much more to getting a business up and running than just the idea. A good work ethic for instance is equally important. The details in your business idea need to be framed in a way that it addresses all aspects of the business-the risks that may arise, game planning. Failure to do this will undoubtedly stop your business before it even starts.
4. Wrong Initial Spending Habits
Yes, you have all the capital you require but this does not mean that you spend it carelessly and without proper planning - especially when you are just starting out. There is a thin line between early investment to get your business off the ground and overspending too soon. I don’t need to tell you that crossing the line will cost you more than you can ever imagine.
5. Giving Away the Control of Your Business to Someone Else
Since this is your business, you need to be in charge of things, you need to do things your way. Having someone else run things is like giving away your dream.
Decisions, determination of agendas, vendors, schedules, partners and organizational structures all require you. It’s your call to make so step up to the plate and put in action on your passion. Hold the steering wheel as tight as you can and let the world know of your existence.
All in all, getting a business off the ground comes with its challenges. The wisdom is in knowing how to avoid some of the mistakes and launch properly. Best of luck with your business startup!