Everyone dreams of starting their own business and being in control of their own future. But a successful business requires careful planning and constant attention to management.
The fact is, 90% of startup companies fail. Here are four common mistakes you should avoid.
Starting a business includes a number of daunting challenges, such as managing people, materials, finances, marketing, and looking for advantages over the competition. All of this can be confusing and overwhelming. Start by drawing up a realistic business plan for developing all these areas and stick to it. Running a company is largely about leadership, and both your employees and customers will lose confidence if you keep second-guessing yourself and changing your operations.
In an age where millions of users are following topics on Facebook and Twitter via millions of smartphones and computers, you can’t afford not to reach out to such a potential market. Social media is no fad; it just keeps growing. Create accounts on the major social sites and reach out to users. Establish your brand and focus on expanding it one site at a time. This will take some time, but staying true to your message and finding creative ways to engage and inform audiences will help you to build your own following.
A major lawsuit can cripple even the largest companies. Protect your new business venture by hiring a lawyer on retainer or even full time if your industry demands it. Make sure all your operations follow relevant regulations, both local and federal, to keep the lawsuits at bay. Also ensure that both your products and business properties are safe, as a consumer injury due to your negligence could signal the end of your nascent business. A professional with a master’s degree in safety, security, and emergency management can assist you in keeping your operations in line with the law (click here to learn more), and ethical business decisions can help keep you out of the crosshairs of a lawsuit.
Don’t Overreach Yourself
Getting your first client or big order is a great relief and confidence-builder, but make sure you can fulfill customer needs. Don’t rush growth by scrambling at the last minute for extra help or supplies to satisfy demands beyond your capacity. Excessive volume, unrealistic deadlines, or a client demanding extra services that erode profit could actually ruin your reputation before you even start. Growth should come as you acquire the additional resources to support it.
Sustaining business often relies on building a support network of staff, finance, and vendors that will drive future growth. But along the way, you’ve got to minimize the mistakes and oversights that could spell disaster.