• Categories

  • Pages

  • « | Home | »

    5 Mistakes to Avoid While Starting a New Business

    By Richian | May 19, 2015

    new business start up mistakes

    Starting a new business is not so easy. First timers do make mistakes and that mistakes lead them to loss and shutting down the business. Before starting a business, you need to study those businesses which are successful along with those which flopped. Studying both these will give you ideas and lessons about what to do and whatnot to do. If you don’t have that, here we present these mistakes which newcomers in business generally do and if you are starting up with new business you should avoid it.

    You must have a specific reason for your every why. Your mind must be clear as to why this business should be started. You must have a clarity regarding all the answers. It should not contain any but. For example it needs to happen but it has some fault. Like this you will definitely give up even before starting and running. Your mission and vision towards your enterprise should be clear, by this the initial problems will be negligible for you.

    As we all know starting up a new business is a risky thing. It does not come out with success and profit all the time. The success rate of the business is low and this is the reason that the banks are not always willing to give money. Since the financial meltdown, the banks have specifically make restriction on lending money. The only way to get the money from bank is to pledge your securities or mortgaging your home, investments or other assets. If business does not flourish then you will lose your savings, home or any other thing kept as security with bank.

    The key factor of any business is to let your product flourish in market and you will be able to sell. Whether it is product or service you must be able to sell it. The regular clients already have some seller and have maintained those from years and they already have their service provider. So you need to replace them. For gaining potential clients you must be offering them something more which they are already getting to attract them. Thing you need to do is give such attractive offer that make them compulsory to come to you and when they come once, you exceed their expectations so they keep on coming. So think upon it as to which section of customer you should be focusing on and how to get them to you.

    It’s pretty much difficult to decide how to shut down a business without even starting it. But it’s really a bad assumption to believe that the business would work out and you will be in a profitable situation. Keeping a backup plan is beneficial that can recover you from bad end up of business. Most f the owners think that it will be easy to sell the business if it does not work. But they are totally wrong only 10% flop business which are put for sale actually get sold. The reason behind not getting sold is that the business is not profitable and it does not possess proper documents to determine their worth.

    Your family members and other relatives are affected by your business in plenty of ways. So you need to make them understand and convince them that it may not be possible for vacations and extra spending. It’s also possible that you might not be able to give them that much time as you give them before. Thus their support and understanding is also very important.

    Topics: Entrepreneurs | No Comments »

    Comments are closed.