Starting any business venture, regardless of trade or industry, is rarely, if ever, an easy task. With so many things that require careful consideration and the pressure of making decisions that could affect the company in the long run, it is easy to experience mishaps and oversights. While this may not necessarily be a problem
Starting any business venture, regardless of trade or industry, is rarely, if ever, an easy task. With so many things that require careful consideration and the pressure of making decisions that could affect the company in the long run, it is easy to experience mishaps and oversights.
While this may not necessarily be a problem for well-established corporations and larger enterprises, even the smallest error can create setbacks that a start-up may be unable to recover from. As such, it’s crucial to avoid mistakes at all costs.
Here in this piece, we’ll discuss some of the most common pitfalls that you need to steer clear of if you want your newly-established company to succeed.
- Passing over the planning phase
Creating a plan might appear like a tedious task, but if you fail to establish a solid business model that includes market research and financial matters, you’ll increase the risks of failure. As the saying goes, those who fail to plan are planning to fail, and if you don’t want your start-up to go belly up, you must never pass over the planning phase.
That’s not to say that you have to spare the time planning for every process and eventuality – doing so would require you to become a specialist in an incredibly wide range of areas and disciplines, and to find more hours in the day than anyone else.
Working with a commercial lawyer to draw up employee contracts, for instance, and investing into scalable human resources and payroll software from industry-experts like Tugela People won’t just make things easier in the long run, but it’ll allow you to avoid problems that could potentially put an end to your company.
- Undervaluing the company’s goods and services
More often than not, many start-up business owners under-price their offerings due to their lack of belief and their fear of losing out to their competitors. While there’s no denying that this approach can help entice customers to commit to purchases, it can also undermine the brand’s value which can be more than a little difficult to come back from.
As such, it is critical that you do some competitive research and check the market for the price range on similar offerings first. In this way, you’ll determine what the best price points are for whatever your business is selling.
- Not comparing prices before making purchases
One of the challenges that many start-ups face is the lack of financial resources. Because of this, every investment has to count or the business risks putting itself behind. However, you can minimize the financial risks by shopping and comparing prices for your start-up’s operational needs. After all, doing so will give you the opportunity to secure much better deals than you would’ve otherwise.
While this may seem like a minor detail to bigger companies, even the smallest savings that a start-up is able to make will have a positive impact on its bottom line and, in turn, allow it to reap greater profit margins.
Attaining the desired outcome as a start-up is a terribly difficult task, and the numbers speak volumes on it: over ninety per cent of new companies fail. However, that doesn’t mean that your start-up has to end the same way as many others. By staying away from the pitfalls above, you’ll present your company with more opportunities to grow.