The success of a start-up requires more than a great business idea. In fact, today 9 out of 10 start-ups, fail. What most people do not realize is how many hours a good business plan takes to be created, and even more so, how many more are needed for it to be successfully put into action. This article will be focusing on some of the most common mistakes start-ups make, for you to avoid becoming one of the ones who fail.
Lack of Good Management
Today most start-up owners truly believe they are capable of running their business themselves. However, they fail to realize what a difficult task it can be and underestimate the value appropriate skills and experience bring to successfully managing a business. Entrepreneurs must always be ready to look for help, and by acquiring appropriate help, you might not only be able to come up with a sustainable business plan but also to effectively manage the work you not have expertise on (e.g., IT, research, etc.).
Lack of a Good Location
It is highly important to ensure your company is located somewhere your potential customers frequent. People do not want to have to go out of their way to purchase a product, no matter how great it might be, more often than not people choose convenience over quality. Therefore, if you sell a good quality product in a good location, there will be very little chance your business will fail. We recommend choosing the location depending on where your customers are situated, depending on where your competitors are and depending on how much traffic there is or how much parking spaces are available.
Business owners tend to have the misconception that the bigger the company the more successful it is. Hence, many start-ups make the big mistake of over-expanding before even building a strong customer base or before even having a profit margin. Successful businesses gradually grow and widen their enterprises depending on their demand.
Even though networking is key for the success of any business, when you spend too much time doing it, you might find yourself going to events where you would not actually be learning anything new. You must ensure you spend the right amount of time researching networking events and attend those that are truly worth your while.
Poor Digital Presence
In today’s fast-paced business world, it is really important to stay up to speed with everything, or else, you would be out of the game before it even starts. It is very important for any company, especially for start-ups to have a good digital presence, as this is the way customers can learn about your products and you. We recommend doing it through social media, as it gives you the ability to not only take control of your brand but also to allow your customers to give you their valuable feedback.
Lack of a Good Reason to Start a Business
Nobody should start their own business just for the money, as you must work hard before you can start seeing any profit. The reason behind starting your own business will determine how much work you will put into it, and therefore, also determine whether it’ll be successful or not.
Lack of Funds
Having a good sum of money to cover all the necessary expenses to run your business is crucial to the survival of any start-up. You might be required to pay for suppliers, employees, conducting market research, etc. When you lack the necessary funds to cover all of this, you might be obliged to go out of business. Therefore, doing a good projection of the required funds is vital to ensure you won’t run out of money, or to go out of business.
About the Contributor:
Maksim Tsiazhkin is a Russian speaking entrepreneur & Co-founder and Managing Director of a DMCC business setup company in Dubai named UAE Consultants. He is always enthusiastic about business news, entrepreneurship and marketing and an avid lover of writing about them. You can follow his YouTube channel named “Game Changers Dubai” where he interviews millionaire businessmen of Dubai, their life story & success. If you are looking for information on starting a business in Dubai you too can follow his YouTube channel.