5 Mistakes To Avoid When Starting Your Own Business

Written by Josh Hines on June 11, 2013 under Startup Business Plan Blogs
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When starting a business almost everyone seems to always make the same mistakes as they start their walk in the unknown, here are a few common mistakes to avoid when you start your next business venture.

5 Mistakes To Avoid When Starting Your Own Business

Business Mistake #1 - No Clear Vision

When you start your business venture you need to make sure you have a clear vision and mission statement for why you are starting the business in the first place and what you are trying to accomplish. In your startup stages you are going to have to go through a lot of barriers that will try to stop you from achieving your goal and if you don't have a clear vision and purpose for starting your business then you're going to get discouraged and give up. You need to have a vision and motto of, "Failure is not an option and there is no plan B."

Business Mistake #2 - Raising Funds Via The Bank

Most people that start a business think they are going to be able to raise capital easily and all they need to do is go to their local bank and take out a small business loan, sounds simple right? Well the fact is, that with our current economy, banks are less wiling to take on a high risk profile (startup business) because they want to make sure they are getting their money back plus interest.

As a small business owner, the only real way to borrow money from a bank is if you put up collateral such as your house or other equity to ensure that the bank will get their money back if you fail to pay your bills which is highly risky for a business startup owner.

The best way to cover your finances is to figure out how much money you need to survive for a three years considering you'll want to make sure you have these funds available considering most businesses don't see a profit when they first launch.

Business Mistake #3 - Expecting The World Will Find You

The most common business mistake and probably the most notorious business venture killer is that business owners believe that if they have an awesome product or service that their customers will automatically know who they are and also want to buy what they have to offer.

Your potential clients most likely already have a service provider that they use so it's up to you to find your customer base and then offer them something better than your competition.

There are two ways to attract customers: limit their pain or increase their pleasure. Position your business in a way that makes their lives easier and show how you will do this and customers will be attracted to your business venture.

Business Mistake #4 - Creating A Business Without Long Term Goals

Most business owner don't look this far ahead but you can't start a successful business without knowing where you are trying to go. Successful owners need to figure out their exit strategy and what they plan on doing to grow their business in order to reach this stage of success this way you can pitch this goal to investors whom might see potential and invest in your company.

As a business owner you need to always be adjusting your long terms goals in order to keep your business growing, as soon as a business becomes stagnant it is no longer attractive to its customers and will start loosing its appeal. Always be thinking of new ways to add value to your products that will attract new customers and will make your business look more attractive to potential investors and business buyers.

Business Mistake #5 - Not Getting Moral Support

The worst way to start a business is thinking you can do it all on your own. The truth is your family, spouse or partner will be highly affected by your choice to start a new business so having them on board will help to lessen resistance and turmoil as you start your business venture.

When you have moral support behind you, as you ride the rollercoaster of starting a business, this support group will be there for you to keep you motivated and working towards your goals and aspirations.

Starting a business requires an all-the-time mindset and lifestyle, at least in the beginning. The more everyone you care about understands this, the more likely your business will succeed and your relationships will remain intact.

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