Many people want to start their own businesses, but they don’t want to fail. Statistic Brain reports that 30% of small businesses fail within the first year and 30% of businesses fail within their second year. But you can avoid some common mistakes that lead to startup failure by following these four pieces of advice!
4 Tips to consider before starting a new business
When you’re passionate about what you do, it won’t feel like work and people will be more likely to want to pay for your services. So it’s important to think and consider before you jump into a new idea.
#1 Know your customer’s needs, wants, desires and frustrations so that you can offer them something they want or need that the competition doesn’t provide.
If you don’t put yourself into your customer’s shoes, you’ll wind up building a business and marketing strategy around yourself and what you want, instead of the wants and needs of your customers.
#2 Don’t take on debt or outside investments until you’ve proven that your business can make money.
Putting yourself in debt for an unproven product or service is risky. You need to have solid numbers to show that not only are people interested in your product or service, but that your customers are willing to pay for what you’re selling.
#3 Don’t expect everything to go as planned.
Even if you plan for every possible scenario and you already have a contingency plan, unforeseeable things can still happen. But that doesn’t mean your startup won’t succeed! It just means that there might be bumps in the road along the way.
#4 Don’t ignore your finances.
A lot of entrepreneurs get too caught up in managerial activities that they forget to look at their financials. You have to be able to see what you’re making and what you’re spending so you can understand where your business is going.
Running a startup requires a lot of work, but it’s worth it! When you’re passionate about your product or service and when you plan ahead, you can avoid some of the more common mistakes that entrepreneurs make.