Launching a business can be exciting yet daunting as it requires sleepless nights, hard work and full commitment. Mapping out marketing strategies, sourcing for funds, writing a business plan, carrying out market research and a host of other responsibilities are expected in the pre-launch phase.

After the launch of a business, entrepreneurs wear many hats ranging from founder to marketer to human resource to accountant and the list goes on and on. The pressure from carrying out numerous responsibilities can be overwhelming and can have a negative impact on the business owner as decisions will be made poorly and mistakes are bound to happen.

Although, it is not “abnormal’’ for new business owners to make some mistakes in the early phase of a business, it is vital to ensure that these mistakes aren’t costly and do not happen regularly.

Many small businesses have failed within a few months of operation. Some have failed due to legal or regulatory issues, insufficient funds, terrible marketing strategies, a poor product etc while others have failed due to lack of basic planning, carrying out proper research and making mistakes that could have easily been avoided.

Today’s article is centered on helping first-time business owners by highlighting some common mistakes that should be avoided in the early phase of launching a business.

Some of these common mistakes include;

1 . Avoiding Technology: In recent times, technology has helped to simplify how to launch, manage and grow a business. Technology (Internet, social media, Mobile Apps) has also improved the various components of a business. For instance, through technology, business owners are able to market their products globally and receive payments from customers in any part of the world without having to meet physically, going to the bank or filling a bunch of forms.

However, many new business owners tend to avoid the use of technology for their business regardless of the numerous benefits it can offer their business. This is a common and costly mistake made by many first-time entrepreneurs and one that you should avoid making. Utilizing technology in the day to day operations of your business is a great way to save time, simplify your workload and increase the efficiency of you and/or members of your team.

2 . Absence of a business plan: Like the popular saying goes “If you fail to plan, you plan to fail”. Lack of a well-structured business plan is one of the major reasons many small businesses fail within a few months of operation. The importance of writing a good business plan cannot be over-emphasized as it is a tool that helps an entrepreneur define the business goals and map out strategies that can be taken to achieve those goals. Many small business owners fail to write a business plan when starting a business and this can have a negative impact on the business as time goes on.

3 . Not Outsourcing: Another common mistake new entrepreneurs make is juggling different jobs and responsibilities at the same time. Many first-time entrepreneurs take on too many responsibilities in the early phase and get burned out easily. Although, it is expected for a first-time business owner to wear many hats in the early phase, however, when the workload becomes draining, hiring staff or freelancers should be the next step. Many business owners are reluctant to outsource help from freelancers or consultants because it costs money, However, outsourcing when the workload becomes heavy is a great idea as it protects your mental health and reduces fatigue that can be detrimental to the growth of your business.

4 . Overspending: Starting a business doesn’t require breaking the bank. However, many new business owners go above and beyond by making purchases that aren’t necessary for the growth of the business. In the early stage of business, prioritizing the needs of the business is key. However, many new small business owners pay monthly subscription fees for online applications and tools that are not “necessary” for the day to day operations of the business. Other ways small businesses waste money include outsourcing too many tasks, Hiring staff before they are really needed, buying fancy equipment to “look big” and bad marketing tactics. Spending unnecessarily in the early stage of a business can hurt the business and have a negative impact on the finances.

5 . Ignoring Online Marketing: A costly mistake made by new entrepreneurs, especially those that have physical stores, is not taking advantage of the numerous benefits of online marketing. Promoting your goods and services online is an effective style of marketing. However, many business owners do not take advantage of digital marketing and its business tools. Increasing brand awareness, global reach, effective targeting, increasing brand appeal are few of the numerous benefits digital marketing offers your new business. It is important to note that marketing is a vital component of your business and if done correctly can boost sales and increase profit.

Starting a business is overwhelming, however it is important to carry out proper research, learn from your competitors, network with people in the same field to avoid making mistakes that can hurt your business in the long run.

For more tips on business growth and effective marketing strategies, Follow us on Medium!