THE TOP 5 THINGS TO AVOID WHEN YOU START A NEW COMPANY
Starting a business is often a new experience for most people. This is because most people go into business with a lot of passion and positivity, which are important elements of being an entrepeneur. But also, it’s important to be cautious.
It is easy to get carried away by the moment, but the element of caution will help you pause and take into consideration several important things that need to be considered when starting a company. Avoiding these five things will be key to helping you start out your business.
1. Diving In Without a Plan
Many new entrepreneurs are guilty of letting their emotions override their senses of caution, this is why they dive headlong into business without first drafting a solid plan for their new adventure.
A business is no child’s play. Usually, it’s a new field in which you know next to nothing about, and you probably cannot anticipate the challenges you might face on the way. A business plan requires research and an insightful look into the industry and lets you see things from different perspectives.
Don’t just dive in, have a plan.
2. Ignoring the Competition
Your competition is a huge part of any business you choose to go into. There are quite a number of reasons why you should seek out the most notable and less notable names in your industry and do in-depth research into their operations. Here are just some of them:
· Experience: Your competition has lasted this long in the industry not because they’ve been doing some things right. Find out what those things are and try to mirror them in a unique way.
· Marketing: A good look at your competition’s marketing endeavors will give you tips on how to go about yours. Don’t just look at what’s working, look at what’s not working also.
· Audience: Since it’s the same industry, your competition’s audience is your potential audience too. Study their characteristics and fit your offering to match their profile.
Avoid ignoring your competition when going into business. It could be a very dangerous oversight.
3. Don’t Take Marketing Lightly
You could make the best product or offer the most beneficial service in the world, but if nobody knows your business exists, it just might not exist for long. Every business depends on marketing to help identify who and where potential customers are, how to reach them with your unique offering and keep them coming back.
While there are several traditional marketing options you can explore, digital marketing or marketing via the internet is the most important of all. The internet is the biggest marketplace today. These are some digital marketing options to explore.
· PPC marketing
· E-commerce
· SEO
· Blogging
· Email marketing
· Content marketing
4. Rushing Through the Recruitment Process
Before a ship sets sail, one of the first things the management or owner does is assemble a competent crew to help make the voyage a smooth one. When starting out in business, one of the biggest mistakes any entrepreneur can make is to ignore the hands employed to help in running the business.
Make sure your recruitment process is thorough and every member of staff you employ is not just competent, but also fully committed and in tune with the company’s goals and mission.
5. Going into Business without an Emergency Exit
For every business you decide to venture into, always ensure you have a well-defined emergency exit plan in place. An exit plan helps you determine how best to run your business. If your exit plan is to sell the business once it begins to blossom, all your marketing efforts and management style will be cut out to fit into this plan.
Also, an emergency exit plan helps you define your financing options. If the plan is to expand further, your financing options could include long term loans and venture capital, but if you want to sell the business, your financing options could be quite limited.
Nobody wants to fail in business. The five things above, if avoided, could help you start out on a strong footing and help ensure you go far in your business voyage. Good luck!