If you have been thinking about starting your own business, you are not alone. Entrepreneurship is on the rise and millions of small businesses are launched annually. However, a large portion of these companies struggle in their first six months and ninety percent of them eventually fail, according to stats recorded by CityA.M. While these numbers may seem daunting in the face of your own entrepreneurial goals, success is possible if you know which beginner’s mistakes are made the most often by new business owners and how to avoid them.
- Spending Before Growth Is Achieved
One of the most common reasons startups fail is because their owners put too much of their own capital into the business before achieving growth. This typically happens when company owners dream bigger than their bank accounts can handle and try to implement certain systems before profits can cover them. To avoid this, you must practice patience. Grow your company slowly, spend your capital wisely, and be conservative about taking major financial leaps until you can be assured that your current profits will cover them.
- Underestimating the Competition
Even if you have launched a niche business and you consider your products or services quite unique, you will always have to consider what kind of competition you will be facing. Some entrepreneurs make the mistake of focusing completely on marketing ploys that do not spell out what makes them different from the competition, and in many cases, those differences are what make consumers choose one business over another one that is very similar.
To illustrate this point, imagine you have opened an online store that sells organic treats for pets. Your competition is another digital website that sells the same product, only with a different recipe. If you want to stand out and catch the attention of would-be customers, you will have to offer them a wide variety of treat flavors, shapes, and colors, as well as perks that will coax them to make a purchase and remain a loyal customer.
- Inconsistent Online Branding
If your new company will operate 100 percent online, then consistent branding is one major key to success. The ability for customers to seek out and recognize your brand across the many social media platforms online is vital, for they cannot share what they cannot find. Be sure to create a recognizable brand image and use it consistently when you create business accounts on Instagram, Twitter, and Facebook.
- Sharing Ads, Not Information
Some startup owners are so eager to advertise their new business that they create a variety of social media accounts and starting sending out ads to everyone they know. While this can be exciting for those who follow those pages initially, the influx of advertisements can become tiresome and those business owners can suddenly find themselves losing followers in droves. However, there is a way to advertise your products without relying on traditional advertising, and that is by creating shareable content that highlights their usefulness.
Creating shareable information lets you interact with your customers by offering them something fun as well as useful, such as hamptoncreek does by sharing recipes on their Instagram page that include their plant-based products as ingredients. This allows visitors to learn about the company while browsing delicious recipe ideas at the same time. When you take the time to create shareable content like this, you can help your followers avoid advertising burnout.
- Trying Too Many Ideas at Once
The excitement of launching a new company can result in a plethora of ideas, but failing to focus on one or two at the outset may result in not following through on any of them. Ideas for growing your business and marketing your products are likely to be a dime a dozen; it is maintaining their usefulness that is difficult.
To narrow down which ideas you will implement as you launch your startup, make a list of your top five favorites. From there, write down three ways each idea can help you generate profit or grow your company. If any of those ideas do neither, you may want to set them aside. The more you can focus on a few good ideas that will support your startup in the long term, the more successful you may be.
Starting a new business can be daunting, especially if you have never done so before, but when you plan ahead and avoid jumping ahead before your business has the chance to grow, your chances of long-term success are sure to increase.