COVID 19 affected many different aspects of our lives, but business creation wasn’t among them. There were 1.4 million business applications filed in 2021, continuing a trend of growth.
Unfortunately, the rate of business failure is also very high. Roughly half of all businesses will fail within the first 5 years. With such a high rate of failure, it raises the question of what successful businesses did that the others didn’t?
The truth is that there are many different mistakes that can sink a business. We’ll discuss a few of these small business startup errors in this article.
1. Not Having a Business Plan
The planning phases are among the most important aspects of starting a business because businesses are not to be entered into lightly. Having long-term business goals and a way to achieve them is essential.
Your goal and plan might seem obvious at first glance. Obviously, your goal is to get business sales and profits as high as you can, but there’s more to it than that.
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If you’re starting a carpet cleaning business, for instance, you’ll need to ask yourself what equipment you’ll need. You’ll need to know how much that equipment costs and how much you need to charge to turn a profit.
2. Failing to Do Research
To run a successful business, you’ll need to understand the market your business is in. Try to learn the kinds of things that sell well and what don’t. You’ll also need to learn who your biggest competitors are.
Not all small business ideas succeed, and there isn’t a market for every product created. While this is unfortunate, it can’t always be helped. The public just isn’t ready for some things, and if your business is among them, it’s better that you find out now.
On average, it costs about $30,000 to start a business. Knowing whether your changes are good ahead of time can save you a lot of money.
Just as important as knowing if your product or service will sell is knowing that you can easily and safely produce it. Unless you can do both of these things, you don’t have a business.
3. Not Marketing Your Business
Making a business successful means attracting customers, which means advertising. Advertising in the modern world is easier than ever before since the advent of social media and other forms of digital advertising has made marketing your business online a valid option.
Advertising can be quite scary, though. Not only are you putting yourself out there, but you’re also tearing down the last barrier between yourself and success or failure.
Whether your business thrives or fails, your life is bound to change. Prepare yourself for change before getting into anything, if possible.
Small Business Startup Errors and How to Avoid them
Starting a business is a lot harder than many people think, and those that don’t take the time to prepare often fail within a few years. We’ve talked about some small business startup errors in this article, but you can never be too ready when starting a business.
If you want to know more about running a successful startup, please visit our site.