Business start-up can be very successful if the correct parameters are put in place and are well executed. Many have succeeded and you too can succeed. When starting a business, mistakes are inevitable, but some could spell doom on whatever venture you are getting into. In order for you to achieve great success, there are a couple of things that you will need to avoid.
1. Do not start a business without proper planning.
You have probably heard this before, that failing to plan is planning to fail. Have an elaborate plan that is actionable and practical. A business plan is not cast on stone, so at any point in time, you should be reanalyzing and making changes based on circumstances. A business model canvas is the best way to plan. If you search the internet, there are plenty of templates and instructions on how to go about it.
2. Wastefulness
An astute business person doesn’t deep his/her hand in the jar too soon. You ought to plan and grow the business without looking at benefiting from the business too soon. The turnover profit should instead be ploughed back to the business or invested in an account that you can turn to should your business hit some turbulence.
3. Not doing market research.
Market research gives you various insights into the needs of the market, which are very important. Many people who start a business have the technical capability, but they lose touch with the market and create products or services from their point of view and not the customer's.
4. Avoid unhealthy competition
The business ecosystem is set in such a way that there will always be enough for every business that executes its plans effectively. You should train yourself to learn from your competitors and devise strategies that give you an edge over them. Avoid at all costs engaging in practices that compromise on healthy business competition. Most importantly, stick to the rule of law.
5. Incorrect valuation of your product or service
Whatever your product or service, the resources it takes to produce it will dictate how you price. When you set your price too high, you will be exploiting your customers and too low, you will be straining your business. Do your market research, be reasonable and find that sweet spot that will leave both you and the customer satisfied. Learn about the economics of scale and device ways to lower the cost of production to maximize profits.
6. Not implementing proper book-keeping.
From the moment you begin operations, have your books in order. It is imperative that you have a clear picture of the business's finances and the trajectory they follow. There are crucial decisions that you will make in your business, and they will be informed by your statement of accounts.
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