Start-ups are fun ways to make your entrepreneur dreams come true. But before you start doing things powered by the happy high of owning your business, planning to break even within years and raking in generous revenues, pause to reflect on how you are going to go about it.
Sure, you have a plan and all. But how does that pan out in terms of facing stiff competition in the market? Do you have a robust business plan in place with room for contingencies? It is that time when you should keep an eye out for the most typical pitfalls that hinder start-ups from flourishing the way as initially planned.
Here are the 5 start-up pitfalls to watch out for, and expert tips on how to avoid them.
- Being the lone wolf
This is an absolutely rookie mistake when it comes to venturing into the tricky waters of a start-up. Being the lone wolf will make you face all the ups and downs of the new business all by yourself with almost no one to share your stress and workload.
How to avoid this: Try looking for a business partner you can rely on, he or she should be more of a teammate for you and less of a business partner in times of crisis when it comes to saving the day for your start-up. You will also find new heads to get together for brainstorming sessions, and comforting souls around you are sure to urge you to push on with your dreams.
- Ignoring legal aspects
Not paying heed to the need to have business agreements or employee contracts has the chance of coming back to bite you at times when you least expect it. Many start-ups have gone totally belly up due to unclear legal contracts or employees fuming over inconsistencies for not having a proper contract in place.
How to avoid this: Right at the very beginning, even before you put in an ounce of your efforts or work at your start-up, draw up the necessary legal contracts. Be it business agreements, non-disclosure agreements for your employees or employee contracts, have all of them authorised and approved by a legal counsel you can trust.
Whether you have a plan for setting up assignment help start-up or an on-the-go milkshake truck is more of your kind of start-up niche, steer clear of overspending. Not having a proper budget for the initial months of expenditure can leave you quite out of depth when it comes to managing your money for business, jeopardising the very point of launching your business.
How to avoid this: Make sure you have a financial advisor for your business. If you cannot afford a professional for that, manage the accounts yourself. Prioritise properly, and you will know the best way of managing the resources at your disposal.
- Not upping your comm. game
Lack of communication sounds the death knell for any business, and start-ups suffer the most due to poor communication skills of the bussing entrepreneurs. Since business thrives on communication these days, not having a strong comm. game can cost you quite a dear price.
How to avoid this: Make plentiful use of all the communication resources that you can get your hands on. Establish a transparent channel of communication between your employees, the administration, and your clientele to keep business coming your way.
- Paying no heed to location
Lack of research, insight or business knowledge tends to affect the young start-up owners when they choose all sorts of wrong locations for setting up their businesses. Since revenue and capital generation are all linked to where you are at, it is one of the cardinal sins that you must avoid when it comes to taking your start-up to the next level.
How to avoid this: Just as Silicon Valley would have been your obvious choice were you a young software techie with a new start-up, place your business at a lucrative locale to rake in the moolah (from both clients and investors) as much as you can.
Be prepared to make a lot of mistakes along your start-up journey, but make sure that you are not making these 5 for they have the potential to crumble your entrepreneur dreams to dust. Learn from the mistakes and enjoy what you do – that is perhaps the best lesson that owning your business can offer you. Good luck!
Author Bio: Arif Rashid
Being a versed blogger, I have found the inspiration in the generation of millennial while creativity connects to your writing. And I try to discover new trends in the world. Love to write blogs endlessly and enlightening others.