We had a discussion with some of the small business advisors who have worked in this domain for more than 20 years and more. Something that every other told us was “learn from the mistakes of other people rather than making the same in your own business”. We tried to compile the talks of all the business advisors and put together a list of most common errors made by early startups and seen over the years again and again. So we want you to learn from them and not to commit these in your business.
Here goes the list
1 Borrow money from friends
Borrowed the money needed to start the business form my best friend. How can I arrange the money otherwise and this is the easiest way out.
If you are also thinking like this then you better be extra careful. It does not goes like this and as what you expect it to be. You should get prepare to losing your best buddy. Yes this is damn true and it happens. Money is something that can change the relationship between any two.
Once you borrow some money from your friend, he will start asking you about the money every single day till you don’t return him his part.
Recommendation is to take loan from bank try one of the government backed not family or friends, it’s the quickest way to lose even the best friend. You can take part in programs that fund new startups with innovative ideas.
2 Don’t make hasty decisions
You have a really wonderful idea that you think will surely work and will give you profits. Your idea is new and thinking that it might get stolen you start your business immediately. But what happens is just not expected. The market finds the product not worth and you have already invested huge amount in the business.
Don’t let that happen with you. Take your time and do some market research before starting with the business. Don’t make hasty decisions. Business requires you to take quick decisions but those decisions should be backed up with some realistic stats and data.
Take your time, research the market and think about why no-one else has done it before. It’s probably because it’s not a very good idea.
3 This business is simple to start
No don’t even think in that manner. No business is simple to start no matter how simple your business idea is and how small your business is. If you are starting it from scratch then you need to be prepared for all the ups and downs of the business.
Thinking that it is simple to start a particular business, people often make mistakes when they actually get into the market. Many unexpected things turn up for which they are unprepared since they never took it seriously in the initial stage.
4 It’s a small business, don’t need a business plan
Wrong, you can’t expect to run a successful business without having a plan. Business plan is a strategic method to decide how to launch the product in the competition market, how to achieve long term goals. Business plans are made to avoid unexpected failures in the business at a later stage. To list out all what is required to start a business on your idea you need to draft out a business plan.
The problem is that without a plan, you won’t have a clue how you are doing.
A proper business plan gets you to think – in advance – of all the mistakes and problems you might face and how you will deal with them. It will give you a map of your future, something by which you can compare your progress. A business plan is vital!
5 This is a billion dollar idea
Thinking in this direction is good but depending on just this idea and not doing anything by yourself is bad for your business. No idea is big until worked upon seriously and with pure dedication and hard work.
Every idea is good and no idea is a billion dollar just because it is unique. It is the amount of work you put in that idea every day that makes it worth. Don’t give up on any idea too early and don’t think of every idea as a billion dollar one.
We hope you will work on these mistakes without committing them in your business. Share it with your friend if he needs such advice since you believe he is planning to start a business of his own.
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All the best !!