Starting a new business can be a daunting task, whether you decide to create one from scratch or buy an online business for sale. There are too many risks involved but they shouldn’t stop you from trying.
If you’re planning to launch your own business, you’re probably made constantly aware of horror stories and troubling statistics stating that approximately two third of startups fail in their first year. While this fact is true, what you probably aren’t told is that most of these startups fail due to their owners neglecting to undertake certain practices or take sufficient care. In this article, we look at some of the most common mistakes that lead to startups going under at an early stage.
Insufficiently Researching Your Budget
Everyone knows that budgeting is vital when planning a business. After all, you can’t apply for bank loans or approach potential investors without a well laid out business plan containing projected income and expenditure for at least the next three years. However, so many startup bosses base these figures on guesstimates, approximations and lazy research. Ideally, you’ll need precise figures for as many lines of your budget as possible. We highly recommend calling suppliers for accurate quotes and speaking to other specialists within your field to get an exceptionally accurate picture of what you’ll make and what you’ll spend throughout your first three to five years, taking factors like seasonality into account.
It’s so tempting to plan out every aspect of your new company in minute detail. After all, it’s your baby and you want it to be perfect. However, you really need these plans to be based on more than your own tastes and preferences. Do as much audience research as possible and find out everything you can about the approaches favored by your target demographics. You should keep looking for feedback after you launch. If a particular change is requested multiple times, you should definitely consider making adjustments based on those suggestions. At the end of the day, you won’t have a business without customers, so it’s vital that you listen to what they want.
Investing Too Little in Marketing
Marketing is often one of the most underfunded areas of a company’s budget, and this often ends up being that enterprise’s downfall. It is vital that the relevant people know who you are and what you do. You need to be able to target individuals who are most likely to invest in your products and services. You should invest time, effort and money into a range of marketing techniques. These may range from advertisements delivered via various media outlets to more modern approaches such as intent SEO, a method of optimizing your website to boost its position in the search engine results by targeting users who have a clear intent to invest in your brand. These techniques will enable you to consistently outrank competitors and multiply revenue.
Failing to Find a Niche
You must ensure that your brand stands out from the competition. You can do this by offering a service or product that isn’t provided by rival businesses, or by studying areas in which other companies in your sector fall short, then ensuring that you excel in those same disciplines. You can also take stock of your own unique personal strengths and those of your staff members. What are you capable of that no one else can do? Try to apply this to your business in order to attract new audiences.