6 Common Business Startup Errors and How to Avoid Them

The startup world is full of tales of amazing highs and crushing defeats. Starting a business is difficult. Especially for those who are new to the process.

Did you know that 20% of new businesses fail within their first 2 years? It’s a competitive market out there, and the number of people starting their own business surged even higher during the pandemic.

If you’re planning on opening a new business, and you don’t want to become a part of the aforementioned 20%, then you need to know what not to do. Read on for 6 business startup errors you definitely don’t want to make.

1. Not Doing Enough Preparation

Months—and sometimes even years—of planning go into starting a successful business. The better prepared you are, the more successful your business is likely to be. You need to make projections, set long-term business goals, and create a solid business plan.

It’s not enough to simply create a product or service and then wait for the money to start rolling in—you also need to think about logistics and practicalities. For example, how are you going to ship your products? Do you need to learn about how to dropship?

2. Hiring the Wrong Employees

As a small enterprise, your employees will be a close-knit group and the backbone of your business. For this reason, the employee hiring process is something you should take very seriously. Often, new businesses owners tend to panic and hire the first applicants they see.

Take your time when choosing your employees. Make sure to choose hardworking and passionate candidates. This will serve you far better in the long term.

3. Doing Too Much Too Soon

A common reason businesses fail is because their owners become impatient with the rate at which they’re growing (or overestimate how well they’re doing) and take on too much too soon. Don’t move to a bigger space, take on more orders, or increase your marketing spend unless you’re sure you’re ready. This can end up being the thing that ends up crippling your business.

Instead, be patient. Allow your business to grow organically, and make sure you’re ready before taking on any new commitments.

4. Not Trusting Your Gut

People who start their own businesses tend to be risk-takers with an innate sense for business matters. When you’re starting out, you’ll be in a constant state of making decisions, issuing instructions, and changing your mind.

The most important thing is to always remember to trust your gut. Business decisions need to be made using reason and logic, yes. But if you’ve got a niggling feeling something isn’t right, or you should go for a particular opportunity, don’t ignore it.

5. Spending Beyond Your Means

Starting a business is expensive—to put it mildly. So it’s imperative that you’ve secured enough money from your business funding sources.

Whether you’ve attracted investors or gotten a small business loan, you’ll need to make sure it’s enough to cover your expenses. Try not to spend more than you have.

6. Failing to Focus on Marketing

Successful businesses have stellar marketing plans. Startup owners should become experts in marketing businesses online. Make sure you’ve got a solid digital marketing strategy, and you’re promoting your business appropriately both online and off.

Avoid These Business Startup Errors

Use this guide as a cautionary tale about what not to do with your new business. Avoid these common business startup errors, and you’ll have a greater chance of becoming a success story. See the rest of our site for more quick business tips.