Did you know how discouraging it can be to know that up to 90 percent of startups fail? If you’re new to entrepreneurship, reading statistics like this is bound to make you anxious. While it may be tough to build a successful new company, it’s definitely not impossible.
3 things to avoid when building your business
If you’re not committed to balancing the books and keeping up with the business finances, it’s essential to get people on board to manage this for you. We get it. Being an entrepreneur means wearing many hats. You may be focused on getting a product to market or setting up a website, but don’t lose sight of the importance of understanding exactly how much you’re spending and how much you’re bringing in.
Establish an effective means of handling payments from day one. Don’t leave invoices or bills lying around or keep receipts in a drawer. Keep on top of paying invoices and update your records continually so that you know what needs to be done and which payments have been processed already.
You want to make sure that you’re receiving payment for the services and products you offer, but also that you’re paying suppliers or external agencies you work with on time. If you miss payments, this can affect business relationships. It’s worth looking into solutions like those available at https://www.dataserv.com if you don’t have the capacity to handle and process invoices on-site. Taking an interest in the books and budgeting can help you to avoid overspending, highlight issues related to cash flow long before they become serious, and ensure that you maintain positive relationships with your clients, as well as other businesses you work with.
A lack of research
Setting up a business should never be a stab in the dark. To be successful, you need to know (very early on) whether or not there is a demand for your product or service and find out as much as possible about the market and your target customer. If you go into a new business venture without any knowledge, there’s every chance that you’ll have wasted time and money on a product or offering that won’t work in the real world.
Carry out market research. Have a look at your potential competitors and what they’re doing to create a buzz around their business. If you have a product idea, develop a prototype, host focus groups, and presentations and listen to what buyers, customers, and potential investors have to say about it. Their feedback can be priceless and save you time and money on costly mistakes or things you may have overlooked.
Every ship needs a captain. If you want to lead from the front, make sure you have clear objectives, promote collaboration and communication and focus on hiring the best candidates. If management doesn’t come naturally to you, there’s no shame in hiring people who have expertise in leading teams. Not all entrepreneurs want to be center-stage. For more leadership tips, you may find this article useful https://www.entrepreneur.com/article/238747.
If you’re launching a new business, you may be apprehensive. Sometimes the numbers aren’t reassuring, but it is possible to create a successful company. Be clear on what it will take to establish a solid business model. Keep a close eye on your finances, do as much research as you can, and lead from the front.