Starting a business of your own is a goal for many people, but you have to keep in mind that having a company requires dedication, planning and facing constant challenges. The temptation to start your own business is great, as it is becoming easier nowadays because of the simple tools that help entrepreneurs put their ideas on the ground. In today’s article, let’s talk about the top mistakes to avoid in setting up a company!
Not knowing the market where you want to act
Often entrepreneurs are so convinced that their idea is perfect that they don’t do an exhaustive market study to assess the competition or to see if consumers in fact need the product or service they want to sell. However, if there is not a need of your product, there is no point in starting a business. Thus, studying the market well in order to know all its particularities is essential to have a successful company in the short and long term.
To think that you can do everything by yourself
Even if you think you can do it all yourself, you are advised to surround yourself with a trusted team. Business can grow faster than you think and you will need support to respond to all requests. Likewise, if things don’t go so well, it’s better to have a team that helps you to deal with the difficulties because if you are alone you may feel discouraged and give up.
Too high investment
Even if you have studied the market and all the predictions are that your business will succeed in a short time, you shouldn’t invest more than what is strictly necessary at an early stage. The additional costs should be reduced as much as possible and investments should be made according to the commercial evolution of the product and not on the basis of future profit forecasts. Very high investments at an embryonic stage of the project are the main causes of business bankruptcy in a short period of time after starting a business.
Do not invest in communication from the first moment
Many entrepreneurs think that communication is only important from the moment the company starts to grow. However, this is an area of the company that you should pay attention to from the beginning, because it is essential that the market knows that you arrived and that you are there to win. Pay particular attention to the name of your brand and the logo that illustrates it because they are the first elements that contact the public and should be coherent and differentiating. Having a good website and a strong presence on social media is imperative on these days and you should invest time in working these areas.
Lack of market segmentation
Communicating to everyone, in an undifferentiated way, is a mistake that should not be practiced, especially since the current consumer is increasingly informed and demanding. Starting a business without knowing who your target audience is and without knowing their main features and needs can be a real waste of time. As good as your business is, not everyone will need it, so you’ll be spending resources communicating with people who don’t need your product or service. So you should target your audience according to their main characteristics, so you can communicate in a personalized way with each type of person. In this way, it will be easier to reach people who really need you!
