Introduction: Launching a business is in some respects a thrill-a-minute marathon full of pitfalls that can often be foreseen. There are numerous entrepreneurs who are so passionate about their ideas, that they jump in head first without a safety net, and then end up reinventing the wheel as they fall into the same traps their predecessors did. To save you time, energy, and money, I present here, five of the most “common” pitfalls to avoid, so you can build the foundations of your business for sustainable success into the future.
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1. Launching a business without listening to your market This is the number one mistake: falling in love with your idea without figuring out if there are people who are willing to pay for it. Before you and your team (if you have them) start creating the product or service for months, pick up the phone, and start talking to potential customers, asking them questions about their real pain points. Your initial idea will almost always evolve, and that’s okay! A viable business addresses real pain, as opposed to a hypothesis.
2. Wanting to control everything (also known as the ‘Superhero Syndrome’) You are NOT superman, you are an entrepreneur. If you think you can do it all yourself – accounting, marketing, production, customer service, etc. – then you might as well fast track yourself to burnout. Recognize your flaws and weaknesses early on, and let go – delegate or outsource as early as you can! Hiring an accountant or outsourcing a community manager will allow you to concentrate on your core business – strategy and growth.
3. Underestimating the need for cash flow “Sales will come quickly.” Maybe , maybe not. Without a doubt, the primary reason startups fail is that they run out of cash. Prepare a realistic business plan, account for at least several months of fixed obligations (rent, payroll, subscriptions) and always anticipate late payers. Better to be pleasantly surprised than taken aback.
4. Ignoring your digital appearance Today, if you are not online you do not exist. A professionally designed, optimized (SEO=search engine optimization) website is your primary storefront. Social networks are your megaphone to build a community and to interact with your audience. Do not be everywhere; however, determine where your potential customers spend their time and be engaged and consistent where your customer is.
5. Not valuing yourself out of fear of selling Many creatives and experts have challenges placing a value and as a response tend to undervalue their work out of fear of not landing the client. This is a huge mistake. To place a price that is too low attracts the wrong clients and is not a sustainable option. Correctly calculate your cost of goods, articulate the value you offer, and establish a reasonable price. Clients who value quality pay for quality.
Conclusion: Making mistakes is part of learning. But by avoiding these common pitfalls, you will save valuable time and give yourself the best chance of building a solid and meaningful business.
Call-to-action: What mistake did you make when first launching your business and what did you learn from it? We want to hear your lessons in the comments to help the community!
