- October 12, 2016
- Posted by: Chowdhury Shahid Uz Zaman
- Category: Business
The mortality rate of new businesses is always higher in a period as difficult and in an increasingly competitive and professional market. Increasingly, they are start-ups that will close the first year of operation with doom. What are the 5 most common mistakes that are usually committed in the first year as those who choose to open a business?
# 1 – Think of being able to carry out all the tasks in the first person
Many owners, entrepreneurs and professionals novice decide that (at least) all the tasks of the Start Up just started (administrative, technical, legal, etc.) Can be handled in person without the support of specialized personnel in the individual assignments: this deeply flawed belief, from a certain side allows to save money, but on the other hand requires the founder to perform tasks that do not belong to you, forcing you to steal precious time to the development of strategies for business growth and to raise the probability of evaluation or operational errors. Investing in staff allows to better structure the company, guaranteeing the resources it needs to grow and prosper over time.
# 2 – Acquiring any kind of customer
Usually, anyone who throws a commercial reality its only fixed idea is to find as many people as possible interested in the products-services to quickly build their customer base: understandable but dangerous maneuver while that, already in the short term, is likely to lead the company an unreliable public. One of the main problems caused by the people who are turning to new businesses may arise from the fact that the same (assuming that it had to do with professionals also willing to sell out just to begin to collect some money) afford to behave shortly seriously wondering discounts unlikely, leaving a few outstanding invoice or wasting time and money to the leaders of the newly-formed company. Select the customer with care and attention to avoid having to deal with issues ready to compromise the sound development of young entrepreneurial project.
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# 3 – Underestimating workloads
In the vast majority of cases, those who decide to open their own businesses, tends to completely underestimate the fact that, especially in the beginning, will have to manage an incredible workload without resources or support of any kind: Prepare your website, print business cards, create e-mail addresses, find a way to generate monthly invoices and assume marketing strategies aimed at ensuring visibility to the company are just some of the many tasks that take time and energy to the owner immediately. Start your entrepreneurial experience with the knowledge commitment needed to start a company, helps to deal with in the best way also the pitfalls that can generate in the future anxiety, discontent and dissatisfaction.
# 4 – Do not have enough liquidity
Although for a Start Up can be very difficult to have cash in an emergency, it is imperative to find ways of ensuring the timely cashing and, above all, to avoid as much outstanding : some customers are late with payments, but continues undaunted to ask for new interventions? Prior to please you must push it to pay its debts, explaining calmly that all your requests will be met at the time when he will prove timely in dealing with overdue invoices. It is the first step Adopt a valid credit recovery policy to be taken to get the owed money by ensuring your own company the funds it might need to grow.
# 5 – To hope that customers come spontaneously
Why should the public go wild in a new commercial reality if the holders thereof do absolutely nothing for sponsoring them? Because customers are certainly not famous for rain from the sky, if it prevails the need to attract people interested in the products-services of a young company, it is necessary to adopt strategies which enable it to be known: distributing flyers on the street, leaving a business card to anyone, invest in advertising on and off line and harness the power of social networks can be useful to disseminate corporate messages attracting consumers in target. A series of effective maneuvers (to play, particularly in the first period), which definitely help in laying solid foundations for the future.
These are the 5 most common mistakes made by those who choose to open a business: more or less dangerous mistakes from which it is always best to keep a safe distance!