So you are interested in starting your own business? That’s awesome! But before making that step, there are many things you need to consider. In order to increase the chances of building a successful business you have to plan on how to move within the market. Obviously, starting a business isn’t easy. However, when you know what you need to avoid you can actually make it a lot easier for yourself.
Here are 4 mistakes you should avoid when starting up:
#1 Not investigating the market effectively
Not investing the market effectively is perhaps the biggest mistake an entrepreneur can do. Being aware of how the market operates will help you assess the overall competition within the industry and allow you to make appropriate decisions as to what you need to do.
The best way to conduct your market research is by collecting primary and secondary data. This means that you need to collect primary information on your own and then check secondary data which is what has already been published.
- Choose your target market e.g. European, Asian markets.
- Investigate findings and analyse existing data.
- Ensure that you fully understand market needs and industry trends of each market.
- Provide an indication on how you are going to meet them.
Also, check what is happening or what has happened to other businesses before. This way you’ll get to learn from their mistakes and invest on those elements that indicate good future market predictions. The future of your business will depend on this so ensure that you spend enough time for your market research.
#2 Not following a business plan
A good business plan is essentially the indicator of a successful business. Following a business plan will allow you to have a clear set of goals and a plan on how to get there. So, when you are creating your business plan you need to be thinking how and when you are going to develop your business. Here are some of the main components your business plan should include:
- Executive summary: it’s the abstract of your business plan which contains the goals of your plan. The summary is important especially if you are searching for outside funding.
- Company Overview: it provides more information about your business including why and when it was formed, its overall strategy and mission.
- Business Services: it refers to the services and products your business is offering.
- Marketing Plan and Analysis: sets out your marketing strategy in terms to your market analysis and needs of the target audience.
#3 No financing
If you are lacking financial support then how can you sustain your business in the short-run? Businesses require a lot of money to start with. Financial projections can help you be prepared by evaluating expected profits and losses. Ensure that you are able to invest the appropriate amount of money you need in order to start and develop your business. If you find that you are still struggling, prepare your business plan to introduce your business to potential investors.
#4 Poor marketing
Marketing is vital to business success. This is what is going to make your business known to the public so you need to invest a great deal of money on advertising and promotion as well. Luckily for you today there are many marketing opportunities in terms of online marketing, so you can market your business through social media, business apps and networking.
If you are serious with starting a business, make sure that you carefully consider which steps to take. First conduct your market research, write and test a business plan, find available funding and then promote your business online. Have you made any of these mistakes when starting your business? Leave your comments below.