The start of a new company is definitely one of the most sensitive periods – you need to go through so many ups and downs before you begin to notice the first signs of success. Many entrepreneurs are horrified that they’ll make a brutal mistake that will make all of their work go down the drain.
Well, it’s pretty unrealistic to assume you’ll do everything perfectly the first time around, but mistakes can be turned into valuable lessons. You know what they say: the wise learn not from their own mistakes but from other people’s mistakes. If you’re starting a new business, you should do exactly that. Here are 6 mistakes that are made way too often by new business owners, which you should avoid.
1. Using disorganized data
Disorganized data creates so much unnecessary stress, and new businesses are usually flooded with data messes. Depending on the industry you’re in, you’ll have lots of different data sets coming in: marketing data, sales data, financial data, inventory data, emails, and many more. Unstructured data is never easy to navigate.
Create a data organization policy before the start of your business. You should have special folders for specific sets of data to make data retrieval as easy as possible. Doing so will ensure that your data works for you, not the other way around.
2. Trying to wing it
At the beginning of business, you probably won’t be a huge expert in your field. That’s fine: most entrepreneurs learn as they move forward. However, you should still have a basic business plan with specific goals for the upcoming quarter or year.
You should also conduct or purchase market research. Even if you think you “know” your audience and what they want, the reality might be different. The more you’re able to put yourself in the shoes of your customers, the more successful you’ll be.
3. Forgetting about patents
Before going public with your business, you must get the necessary patents and copyrights. As soon as your business starts taking off and catches the eyes of the public, others might take advantage of your lack of a patent. If someone else patents your product, you’ll end up being in the wrong, even if it was your idea in the first place.
4. Getting overworked
It’s not always the case that the more you work, the more you get done. As a new business owner, you need to know your limits and take breaks every once in a while. Working for 12 hours straight every day will only make you less and less productive, which will be no good for the success of your business.
Don’t be afraid to take some well-deserved time off. View your breaks as a time to recharge for the next day or week. If you start to notice that you need some help, hire an extra set of hands.
5. Failing to properly track your finances
You should always have a budget and know how much money you’re willing to spend. Avoid making the mistake of assuming that you’ll spend “however much it takes”. Have a clear idea of how much money is required for your business, and if you run out of money, think about where you went wrong and how you can improve your spending.
In addition to your budget, you should also keep track of your expenses and income. Where is most of your money going? Are there any cheaper alternatives? Which marketing channels are bringing in the most income? Are you making a profit yet? Keep asking yourself these finance-related questions to notice where you’re making mistakes and where you can improve.
6. Setting prices that are too low
It can be tempting to set prices so low at the start to attract as many sales as possible. It’s a great idea to give away some free samples or free trials at the beginning of your business to raise awareness of your product and attract long-term customers. But don’t make the mistake of setting your prices so unrealistically low that you can’t earn a profit. Instead, spend some extra money on marketing and letting the world know why your product is worth the extra money.
Conclusion
As a new business owner, you’re certainly in for a ride. Be prepared to make mistakes. In fact, be prepared to make a lot of them. However, you can minimize the number of mistakes you make and make the ride much smoother by keeping these common ones in mind.
