MISTAKES PEOPLE MAKE WHEN STARTING A BUSINESS

Having a new business is like giving birth to a baby. How the baby is cared for, nurtured, and provided for, will determine how well he will grow. And so the first eighteen months of a business are the hardest because this is the stage where you teach the baby how to speak, eat and walk. However, the time you invest into the business will result in a positive output in the long run.

People start up a business for various reasons. Some may see it as a way of giving back to society, while some see it as a means of doing away with excess or liquid cash, and some as a means of earning a living. Whatever your reasons are, it is important to remember that anything worth doing is worth doing well. Most people even make the mistake of venturing into a business before figuring out what they enjoy doing; this should not be the case, as the latter should come first. To build a sustainable business, you must be willing to play the long game and not trade short-term gains for long-term successes.

Below are a few mistakes people make when starting a business:

Making Finance your short-term goal

Patience here is a virtue, as many people fall prey to this mistake. The zeal to solve a problem should be your driving force in starting a business; gradually, everything will be added. Your business will be profitable when your product or services meet people’s needs. Do not dream of having a lot of money at the initial stage of your business; get started as small as you can because the danger involved in pursuing cash is that you may become impatient at the early stage, just before you can break even.

Working with friends or family

Business is a serious game, and I would advise you not to play it with your friends or family. Some work with their friends or family because they cannot do it alone. The problem with doing business with your friends or family members is that this group will start feeling a sense of entitlement sooner or later. They would think they deserve a larger company share, more pay, or less work.

Not choosing the right business name

I once spent about two months thinking about my business name. It is that serious. Your business name is important because people always judge a book by its title. Some companies recorded massive success just because they rebranded and changed their company name to a more creative one. As small as this may seem, a wrong business name can destroy your business so take time to choose it.

Planning only for success

One thing that is very common among entrepreneurs is that most of us are optimistic. That’s understandable because if you are not optimistic, how on earth will you create something out of nothing? However, this becomes a problem along the way because you do not have an adequate plan for the unexpected. Do not just plan for success; make some plan for failure too. Fail and remain in business.

In conclusion, I will advise that anyone aspiring to start up a business must, first of all, ask yourself the question, ‘What do you enjoy doing? Many companies crumbled because they started their business based only on market research. While it is important to do a market survey, it is paramount that your response to the question above will determine which business to venture in. When you enjoy what you do, you can persevere, even when facing serious business challenges. You do not throw in the towel.

#MEMBA11

Written by Tutty Tero