So, you have a brilliant idea and are ready to start your own business. The journey ahead is certainly exciting, but many entrepreneurs face some common pitfalls and challenges.
Below, the UK’s leading company formation agent, Quality Company Formations, highlights the five common mistakes you should be aware of and actively work to avoid when starting a business to increase your chances of success.
- Not writing a business plan
Some entrepreneurs often overlook putting together a business plan. They might feel so confident about their idea that they think they have it all figured out and under control. However, missing this step can turn out to be a grave mistake.
Launching and running a business is an ongoing process that requires preparation, research, and strategising—something you can’t simply do in your head or on a whim.
To set your business up for the best start, it’s best to write a business plan. This will help you visualise your company’s first few years of life, understand what it will need to thrive, and outline how it will overcome potential challenges.
Ultimately, a business plan will determine the viability of your idea. It will also show lenders and investors that you’re serious and professional, helping instil that all-important trust in your new business and you as an entrepreneur.
- Not researching your market
Failing to research your market is like starting a business blindfolded—you’ll never know what to expect when you open your eyes. You probably have an idea of your target demographic and competitors, but without thorough research, it’s impossible to say how your business will realistically perform when it launches.
When starting a business, avoid the mistake of not researching your market. You should get an in-depth understanding of:
- Who your direct and indirect competitors are
- What other similar businesses are doing, and how your model differs from theirs
- Common pricing strategies in your market
- Your buyer persona
- How to reach your target audience effectively
Market research is a lengthy but crucial step you cannot bypass when starting a business. Take the time to research these key areas through a range of primary and secondary methods to truly understand how your brand will stand out from the crowd and excite customers.
- Employing the wrong people
Expanding your team is an exciting sign. However, be careful not to make the mistake of employing the wrong people.
When your business is just starting, the people who join you are crucial to its success, and the qualities that make them suitable candidates are wide-ranging. Relevant experience is essential, but there’s more to consider when assessing who can help your business grow from strength to strength.
Here are some of the key attributes to look for:
- Their personal values and whether they match yours
- Their work ethic
- Whether they’re a team player
- Their enthusiasm for your business
- Adaptability and flexibility
- Productivity
- Education
- Hobbies
No one can see the future, and it’s impossible to tell whether a candidate will stand the test of time. But there are ways to spot the great, hardworking people who have the potential to help your new business flourish.
- Not listening to customers
Customers are one of the greatest sources of feedback for new businesses. Unfortunately, if their reviews are negative, some entrepreneurs make the mistake of discrediting and ignoring them because they’re so passionate about their business.
Negative feedback is hard to hear when you’ve poured your heart and soul into starting your own business. However, it’s crucial to take customers’ comments on board so that you can adapt and strengthen your business model.
Your friends and relatives will most likely give you some valuable feedback, too, but it can be difficult to be brutally honest with someone you have a personal relationship with. So, they may keep constructive comments back from you for fear of hurting your feelings.
Ultimately, your customers decide whether your products and services will sell, so be prepared for all types of feedback to come your way and take it on board when it does. You should also actively encourage them to share their thoughts with you, both in person and online.
- Failing to delegate
For entrepreneurs, a business is like a baby. It’s hard to step back and let others help, as it can make them feel like they’re losing control. But running a business can get demanding and stressful, so failing to delegate could hurt the business and your wellbeing.
You might need to delegate ordinary tasks like diary management or form filling or key roles like bookkeeping, social media management, or customer service. Your to-do list will quickly stack up, and as much as you want to, you can’t do everything alone.
That’s why it’s important to surround yourself with people you trust and employ the right people who can help you manage these duties, no matter how small. Delegation is a crucial skill that will help start and grow a business, making it both easier and more enjoyable.
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Thanks for reading
It’s impossible to detect every single potential pitfall that could come your way when starting a business. However, we hope that you found these tips helpful in avoiding some of the most common mistakes that entrepreneurs make. Thanks for reading.
If you’re ready to start your business, look no further than Quality Company Formations, the UK’s favourite company formation agent. From registering your company to helping you stay compliant, their experts are always on hand to help. Choose your ideal formation package, starting at just £52.99, or explore their company services on the Quality Company Formations website.
