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Mistakes Startups Should Avoid

Guest post by: Omoniyi Lawal

Article Overview: Mistakes can be very costly. Averting those mistakes is the first step to success. Below is a list of typical mistakes startups & businesses make.

Mistakes Startups Should Avoid

> Commencing a business without planning.

It is well known that businesses with a Business plan have more sales in comparison to those without one. Writing a Business plan takes thought. It helps you focus, and help you decide what services you want to offer.

It's important to write a Business plan before choosing a business name, a domain name or a web site.

Your plan should only guide you and must be flexible. When your business or your targets change, you can amend your business plan.

> High start-up expenses.

Do not spend too much money before you have made any sales.

Consider purchasing used equipment. Buy small amounts of supplies.

Keep your costs down and maximize profits. When you start to get clients, then you can buy additional equipment and supplies on a need-to basis.

Check newspapers, computer publications, and the web to find used equipment.

Recommendations:

-For accounting software check Sage Tas basic which is free.

-For Stationary check Eason store or vikingdotie online

-For Business Cards, Letterheads, Flyers, etc. check vistaprint online

-For Websites check out mrsite online or GoDaddy online.

-For Payroll check out the SAGE Quick pay which is free for businesses with 6 or less employees

Advise:

-It is always good to test the functionalities of business software first before committing your business to using it.

-Make sure to collect receipts even when buying used equipments or furniture.

-Never use your personal account for business.

> Charging less than you deserve.

Pricing is often a challenge for businesses that sell services. They are sometimes tempted to reduce their fee to get the sale. Reducing your fees does not mean increase in sales; in some cases, it will affect sales.

Create a marketing plan first and build your pricing strategy around it.

Examples of fees you can build around your plan are flat fees, hourly fees; fees based on performance, engagement fees etc.

> Not having specialties.

Being too general. Being a "Business Consultancy" is too general.

A successful Business Consultancy is always one that specializes in specific areas.

For example, Carter Marketing Consulting Ltd immediately indicates what those people specialize in.

A Business should have a clear list of specialties or services it offers. Specializing does not mean that you have to turn down everyone or general work.

But you can reach your market better if you appear to be a specialist in a particular field.

> Not having a target market.

Many businesses, when asked who their target market is, say that everyone is their market. If you think your market is everyone, you will fail. You don't want to advertise to everyone hoping that someone will need your ‘marketing’ services.

Successful advertising is always targeted. Think about what services you want to provide, and then advertise in places where

these people are. For example, if you are targeting doctors, you should go to medical facilities instead of putting flyers on

bulletin boards at grocery stores. If you are targeting students, go to colleges.

> Not asking for the sale.

If you are not asking for the sale, you're not bringing in as much money as you could be. Have a call to action (e.g. call now) in all your literature and on your web site. Ask for the sale when talking to people on the phone or in person.

> Failing to market or marketing inconsistently.

Lack of marketing is the biggest mistake small businesses make.

They may send out flyers or postcards once, or call a prospect once, and they expect the phone to ring off the hook. The key to

marketing is repetition and planning. It takes more than one contact for a customer to buy. You want your name to be in front of your customers and prospects on an ongoing basis. You want your prospects to think of you when they have a problem and need your

help.

> Not asking for help.

Most business owners have strengths in a particular area but not in others and they don't ask for help in the business areas they need help with. If you don't run your business at maximum efficiency, you're losing money.

Get expert advice from a business consultant, lawyer, accountant, or other professionals when you need it.

Running your own business can be rewarding. To make a successful impact in the business world, you have to start right and the key to this is planning.

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Article Tags: Business Tips, Marketing, Small Business, startups, typical mistakes



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