Start-Up Blunders You Can Learn From
Like anything else in life, if you’re thinking of starting a business, you should look to those who have gone before you. While you should take the time to learn from the successes of others, you should also spend time researching their mistakes. It’s reported that only 10 percent of new businesses will still be operating after five years. If you hope to be among that coveted 10 percent, here are common blunders that you should learn from:
1. Failure to Specialize
What do you want to do? What do you want your business to be? You’ve got to know the answer to these two questions before you open your doors. Sure, you’re a great writer, but what do you want to write about? Yes, you’re a whiz at marketing, but who do you want to market for? One of the biggest blunders that new business owners make is failing to specialize.
There’s a saying that goes, “You can do anything.
You can’t do everything.” Take that saying to heart.
2. Incorrect Marketing
You’re going to be working with a limited budget when you start your business. Within your limited budget, you’ll need to advertise. Don’t waste money on business cards, brochures and websites. Business cards get misplaced, brochures get thrown away, and websites can be built for free. You can spend major money on marketing when you have major money to spend; you get the gist. For now, focus dedicating your money to areas of your business that will make you more of it.
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3. The Overblown Ego
No one starts a business thinking that they don’t have the best idea in the world. If you can’t check your ego at the door, you simply don’t have what it takes to start your own business. You’ve got to be willing to accept other people’s ideas and opinions, and you’ve got to be ready to change course when things aren’t going right. When you start a business, plan on making changes; it’s rare that CEOs don’t find it necessary to alter their ways of thinking.
4. Not Having a Plan
The reason you’re starting a business is because you have an idea. Before your idea can turn into a money-maker, you have to create a plan. One of the biggest blunders you can make is to hang your shingle without creating a sound business plan first. You should outline your sources of cash, your plans of action, how many employees you will need, where you will operate; all of the things that it takes to run a business. Never think that you can just wing it.
5. Copying Someone’s Idea
Let’s face it: Not many people create the first big thing. Most business owners create the second, third and even twentieth big thing. Even though you’re selling the same thing as the successful shop down the street, don’t be tempted to steal any ideas. If you operate the same shop in the same way, you’ll get half of the business. Come up with something that sets you apart from your competition, not something that makes you blend in.
If you want to be a success in the business world, you need to learn from the mistakes of those that have come before you. By avoiding the common blunders made by others, you can be one of the select few that stay in business long after others have closed their doors. Take heed of the mistakes listed above and learn from them.
Writer Susan Brand is an avid blogger. Interested in learning more about running a business? Check out her recent articles about online mba rankings on mba rankings .
Susan Brand
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It’s interesting how real life lessons, such as learning from other’s past mistakes, can be applied to business-related endeavors. I think it’s important to know our competitors’ tactics, but duplicating it won’t get us as far as setting us apart by creating our own way.
I agree with you, wait a little bit before you start making business cards and stuff. But once you get your business up and running I think they are a very good way to get your name out into the market.
Very well said Susan & Gail, especially that you mentioned – “Not Having A Plan”. This reminds me of a quote by Lewis Carroll: “If you don’t know where you are going, any road will get you there.” I see it way too often, that startups have a grand idea but don’t map out the route to their destination, and end up wasting time on things that just don’t count. Thanks for sharing with us.
As I was reading this article, I felt that sales is one of the most important aspect of any startup. Without a sound sales strategy, you are never in business. Entrepreneurs often falter in creating a sound sales plan. Here is an article on developing your sales: http://blog.foundermates.com/getting-your-first-paying-customer/
I heard another statistic something like 1 in 3 start up businesses fail in their first three years? It’s so important to maintain finances and control spending at the same time as growing your business, and this is quite a tricky balance to get right.
Having a clear plan and direction is so important and should help you to grow as opposed to going the opposite way and getting in serious financial difficulties.
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Having a good business plan is certainly one of the first steps to starting a business off in the right direction. I still think regular print advertising, such as brochures and offsite banners and such if done the right way can target a specific audience and drive customers to your business.
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Before starting up any business one should first conduct a SWOT analysis to weigh down all internal strenths and opportunities and weaknesses and threats. This would help devising a marketing plan and strategy and ofcourse a direction. Those who jump into business without a proper plan will always face difficulties. Thanks for the share.
Hi Susan,
Marketing can make or break any business. If proper marketing is not done that it close down the business within 1-2 years of its establishment. One should plan properly the marketing budget as per the prevailing competition. We have to spend money on those areas which can bring more revenue to our business. Great Post…Keep sharing this type of knowledge.
Very interesting and informative post! Mistakes can be committed during the start up any business whether online or offline business. What’s important is that we learn from these mistakes.
A very nicely written post!! When we start up a business, we tend to do mistakes, but the key lies in learning from the mistakes and taking lessons. I liked the first pointer which says about specialization. Today’s era calls for being a specialist in one field rather than mastering all. Also a good marketing strategy can do wonders to the start up. Thanks for the helpful tips.
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Good Plan is a Key, If the plan is good backed with great marketing strategies then the success is certain.