Okay, you have a really brilliant idea and you are very optimistic and passionate about it. You are certain that your idea will be the next big thing that everyone will be talking about and now you are ready to launch your new business.

Starting a business can be a very exciting and fulfilling venture. However, what’s more important is staying in business and keeping the business running.

According to statistics, eight out of ten startups fail within their first eighteen months of operation, but I’m sure yours will not be among the eight, not after reading this article.

If you’ve started your business already or you are in the process of starting your business, BRAVO!.. You have certainly made some decisions to have come this far but the truth is, to keep your business afloat, you’ll have to put in more thought and make even more tougher decisions on a daily basis as you journey through your entrepreneurial career.

Below, I am going to point out 5 mistakes that you must be aware of and avoid if you must take your startup to greater heights.

1. Lacking Focus:

It is very important not to lose focus on the very aim and purpose for which you started your business. Obviously, every entrepreneur is in business to make profit but, often times they get carried away in their bid to make more profit and lose focus on the core purpose for which the business was started.

If care is not taken, you might fall for the temptation of chasing after every opportunity (note: opportunities that are unrelated to the company’s core function) to make more profit and forgetting the core purpose of the business, this will in turn affect the overall progress of the business and might eventually lead to failure.

To avoid falling for this trap, before starting a business, you should already have in mind how you intend to make your profit from the business, then stick with that system and continue to improve on it.

2. Zero Customer Base or Target Market:

Don’t just start a business without a clear definition of who your ideal customers are or a set of people who are already waiting to purchase your product after launch.

Many startup entrepreneurs fall for the illusion that everyone and anyone is their ideal customer, this is not true. By taking a closer look you might discover that people from a particular demographic, who are of a certain gender, have a particular interest and are of a certain age range are the ones who patronize your product or service.

Putting your product in front of people who are not interested is a waste of time and resources, and this can lead to frustration.

Take the time and define who your target audience are, then present your product or service to them and you will have better results.

3. Working Alone or With The Wrong Team:

Yes you have the idea, you carry the vision, you are very enthusiastic, you even have so much energy and do virtually everything alone, therefore, you handle all operations of the business all by yourself.

Bravo!!! But, this isn’t the best route to take, in fact, you are actually slowing down your business. As an individual, there is only so much you can do alone within every 24 hours but when you work as a team, so much more can be achieved within the same space of time.

Just as vital as it is to work with a team, working with the wrong team can be worse than working alone. Not everyone who wants to join the team is as passionate and interested in the vision and goals of the company as you are. Some people just want to get a steady paycheck at the end of every business month and that’s all they care about.

When choosing your team members, be very sensitive during the selection process and choose only people who can help the business realize its visions and goals.

4. Partial Involvement:

Okay, you’ve started your new business, you’ve also hired your superb team members to handle all the day to day operations of the business, so you can go back home and relax while watching your favorite TV series (Wrong).

Your business is still in its startup stage, you still have so much to do and so many decisions to make. To make good and well informed decisions and take the right actions, you need to get firsthand experience of how the business runs on a daily basis which can only be achieved if you are present in the business and involved in its daily operations.

Moreover, as the founder of the company, you are the man with the vision and dream of the business; no one can lead the team better than you.

5. Poor Funds Management:

Every company requires proper fund management to be sustained, otherwise it will be out of business before anyone realizes. As a startup, you have to carefully watch your expenses and only spend money on what is necessary.

Some entrepreneurs start out with buying high-end office furnitures and renting overly large office spaces which adversely reduces their initial capital.

You have to spend your money very wisely. Try and keep your expenses as low as possible as long as it does not affect the day to day operation of the business. Hiring a financial advisor can come in handy if you are having a hard time deciding what to or what not to spend money on.

In Conclusion…

There you have it, 5 mistakes you must avoid as a startup and how you can avoid them. The journey of growing a startup can be quite challenging and overwhelming, arming yourself with the knowledge of the mistakes you should avoid and avoiding them will surely set your business on the path of continuous growth.

SOURCE: Accounting Wizards’ Blog

cc: Mynd44, Dominique, Lalasticlala

I hope you enjoyed it?

cool

Fine tips. Thanks OP.

Let's also see 16 REASONS WHY MANY BUSINESSES FAIL AND HOW YOU CAN AVOID THEM.

Nice one. Thanks

Great.

Thank you

Donald3d:
cool

wisdom4today:
Fine tips. Thanks OP.

You're welcome

You're welcome.

IamKollinx:
Nice one. Thanks

Also read: How To Fix Your Company's Accounting Mess

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