September 19, 2019
5 min read
Our business consultants have created a brief overview of the 8 common startup mistakes that entrepreneurs and small business owners must avoid.
Turning an idea into a marketable and profitable business model is not always as it seems. An entrepreneur has to cross numerous hurdles and take tough decisions before a startup’s products or services even reaches the customers. One poor decision or wrong choice can lead to potential failure or hurt the startup in a massive manner.
There is no sure shot at success and no expert or business guru can lay down a fool-proof strategy that works for all businesses equally. While each startup has its own battle, there are certain common mistakes that a majority of entrepreneurs or startup founders commit that can hurt a business in an irreparable manner.
SeekWiser’s business consultants have created a brief overview of the 8 common startup mistakes that entrepreneurs and small business owners must avoid:
A business needs protection whether it is financial protection, protection from copycats, or protection from legal implications. Many times, small business owners do not consider it important to get the business incorporation done when they start a new business without understanding the legal implications associated with it. When a business is left without a legal identity of its own, business owners suffer personally for the liabilities and debts of the business. Any legal matter against the business becomes a personal legal matter of the owner. Not getting business registration done leaves the business as well as the owner vulnerable to unlimited liability and risk.
One of the most hectic and tedious work is to lay down the business plan and short/long term goals of the business. However, not thinking ahead and moving blindly into a direction without research can do severe damage to the startup. An entrepreneur must lay down the complete blueprint of the business strategy and focus on key areas such as the market, finances, recruiting, etc. individually. When a business does not have a strategy, it cannot predict the outcome of a business transaction. Investors also tend to avoid putting their money into a business which comes with uncertainty and risk that comes with the lack of strategy.
While some consider implementing technology into a business as a costly affair, the reality is different. New and small business owners avoid technology considering it as an unimportant expense, however, keeping up with the latest technology trends can enable the business in implementing cost-effective technology that reduces the time and resources put into completing mundane jobs. Unwillingness to follow technology and incorporating it into a business can hurt the startup more than the cost associated with it. When the business owner lacks the knowledge of which technology can help standardise and improve the business operations, it is advised to consult a technology consultant in India who can shed light to the right tech products and tech stacks suitable for the business.
Customers are the most important factor that decides the success or failure of a business. Businesses which fail to understand or research about its target audience will not be able to reach potential customers. Identifying the ideal customers and marketing the startup’s product or service to them is the key to turn the business into a profitable venture. Market research about the demands of the customers, the price they’re willing to pay for the products they like and the manner in which they make their purchases it vital to run a successful business.
When a business does not have a budget that defines the manner in which it must spend its money, it can run out of its funds prematurely without even realising it. Businesses often avoid laying down a budgetary plan that defines who much they will spend, on what they will spend and when they will spend. Without financial management, knowing which department is draining most of the money, which operations require more funds, etc., a business can incur debts and run out of money right in its initial stages. A financial management consultant is a right person to get assistance for avoiding this mistake and laying down a detailed budget for the business.
Entrepreneurs and startup owners dream of raising funds for their business through different startup funding rounds. However, when fundraising becomes the sole motive of the business, it loses focus on the customers and its product. When a business shifts its focus on the product or service they’re delivering to the customers and runs only after the numbers, it starts to lose on its existing customers as well.
Business owners hope that they never have to require the services of a lawyer and avoid taking any kind of legal assistance for their business. However, in doing so, they also miss out on laying down the requisite legal documents such as commercial agreements, employment agreements, shareholder agreements, etc., leaving the business vulnerable to legal disputes with vendors, clients, employees, shareholders, and even co-founders.
No person can do it all himself/herself. A business owner cannot handle each and every aspect of the business flawlessly and without requiring outside assistance. First-time entrepreneurs often avoid seeking the help of a business consultant and dive into business with half knowledge and no experience. Getting assistance from a business advisor can help entrepreneurs in resolving issues which are out of their expertise and finding a fresh perspective on the way the business is performing.
We, at SeekWiser, aim to assist startups and small businesses in getting connected to the best business consultants in India, who can help the business owners and entrepreneurs in avoiding these common startup mistakes and running their business successfully. To find the right startup consultants near you, give us a call at +91-8010880066 or send an email at [email protected].
Read our comprehensive yet simple online resources and guides on startups, technology, finances and entrepreneurship.
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