Starting a business is always a good thing to ponder on. When ideas pour on you, you sometimes become so in love with them that you forget to actually map out how to start properly.
You’re actually doing the right thing in researching these 5 things to avoid when running a Start Up, so without further ado, sit back and read on:
1. GETTING AHEAD OF YOURSELF
While you believe in your idea so much and you firmly think it’ll work, success doesn’t happen overnight. You can’t expect everybody to also just embrace it wholeheartedly in a snap of a finger. There are things to prove and you’ve got to sustain how you aggressively started. Allot enough time to develop a business plan. Adhere to it faithfully then study how you could make it better. Once it’s earning money, then add increments to it as you expand. Consider its day to day progress. The best way to hone your idea is to work on it. Follow the business model that was agreed upon and study each concept well if it works or not. If it makes the business progress or does it hold it from opportunities.
2. SPENDING TOO MUCH OF THE CAPITAL EARLY ON
A business idea should honour the relationship between profit and costs. There lots of people who commit mistakes in keeping these two in balance. While there are fixed costs, the idea is to minimize variable costs to help gain profit. Remember to tighten the belt at the beginning. But not too tight that you don’t get professional help in terms of IT service, hiring lawyers for legalizing and notarizing documents, and hiring an accountant to sort out finances.
3. RELYING ON OTHER PEOPLE’S MONEY IN STARTING UP
It’s a business strategy, yes, but if your first business is meant to eat up a family member’s entire savings because you can’t get approved of the loan. You didn’t get approved of the loan not because your idea was bad. But it’s because there’s some elements that are missing. Maybe its logistics need to be clearer. Or maybe, you have to develop it more. A deeper feasibility perhaps? Maybe there’s a lot of competition already that the idea needs more tweaking. Don’t start up with a 100% loan. Worse comes to worst, it would need huge collateral so here you are, giving up the deed to your house and causing trauma towards your family. Or some of your resources may be auctioned out to pay your debts. And that’s just the most awful thing. A lot of times, money is made in a start-up through marketing correctly. Example; if you’re aim is to run a successful nanny recruitment agency then don’t advertise for anything other than nanny services. Often times people will make the mistake of advertising way too broadly, keep it simple and straight to the point.
4. LETTING OTHER PEOPLE HANDLE YOUR BUSINESS
When you start a business, proximity to it matters a lot. You will be the decision- maker, the strategist, the resource of all reactionary business and the mind of everything. If you allow other people to run your business, you might as well just give it up. You have to understand that they will never have the same compassion and drive as you. If you’re not 100% committed to starting this business, don’t bother putting effort into it from the very beginning. This goes the same with those who would like to launch their business but are doing something else like having a day job. A business requires your attention 24/7. It will require longer working hours from you other than the usual 8-hour office job. So, unless you intend to give up the other things you have to do, think twice about putting up a business.
5. NOT HAVING THE RIGHT PEOPLE.
Some say you should have the best people to make a business run. But the real deal is, you don’t need to have the best but just the right people beside you. This would mean faithfully adhering to making the goals happen altogether. If there are things you can’t do on your own like maintaining a website, bookkeeping and looking into legal documents and reviewing deals with collaborators and investors, by all means, hire professional ones. While you remain to be the CEO of the business, learn how to delegate tasks. Know your crew and have the same pulse with them. Be clear in assigning tasks among your team from the first day of planning all the way through. The right people around you also incorporates those who you employ. If you are running a factory based on wire work, you are not going to hire someone who specializes in plumbing, you will hire someone who has an extensive history in welded wire mesh and similar projects. Make sure when putting together a team, the team is experienced and all share a central goal.
In general, putting up a business will always go through a trial and error phase. If you are creative enough to come up with a product that is uniquely necessary, well and good. But it doesn’t end in having an idea. It builds on grit, determination and the biggest why. So, stay motivated. And work your way through.