Any businessperson will know that during the first year of starting up, you will learn more than you have since you were back at school. While you may think that if you research enough, and read up about the common mistakes that people make, you will completely avoid coming a cropper, but chances are you will cock up at some point. Taking heed of the advice of others can help you to avoid the common, rookie mistakes though, so that whatever blunders you do make won’t make your new start-up venture crash and burn.
Jumping straight in without a plan
Now is not the time to wing it. If you want to start-up a new business you are going to need a plan and heading into business without one will inevitably scupper you. Whether it’s a professional business plan that you’ve discussed with financial advisors or a rough outline of what your objectives are, scribbled on a piece of scrap paper, any plan is a good plan.
Learn as much as you can about the market and your particular niche. Generate a unique selling point that will make you stand out and make sure your knowledge of the area is extensive.
Thinking that Quantity is Better than Quality
The fact of the matter is, in most cases, it’s not. Selling your wares for dirt cheap prices and undercutting the competition by massive amounts won’t make you millions. Sure, be competitive with your pricing but don’t sell yourself short. Before sticking a price tag on anything, do your maths. Work out fixed and variable costs, research what other business charge and figure out the margin you need to walk away with a profit.
Cutting out valuable expenses to save money
Don’t avoid important commodities to keep your overheads as low as possible. Research what essential cover you need and invest in it – after all, what if something does go wrong? If you need professional indemnity insurance cover, or you’re working with the public so need liability insurance, make sure that putting this in place is top of your to do list. Hiscox offer indemnity insurance and various other essential cover packages – don’t risk going without for a few pounds per month.
Many start-up business owners think that, in the early stages, marketing is unnecessary, so they don’t bother to apportion any of the budget to it. Make sure you budget for a marketing plan, however simple it is, to help you to get your feet off the ground.
Being a friend instead of a boss
When it comes to hiring others during the early stages, it’s easy to forget the authoritative stance that you should be taking. Treating them as your friends is all well and good, and can be great for staff morale, but you need to act like you’re the one in charge.
By taking heed of advice and learning from mistakes made by others, your start-up business has a great chance of success. There’s plenty of advice scattered across cyberspace – use it!