The path to success is never linear. Mistakes and failures are an integral part of your entrepreneurial journey as a small business owner. However, unless you learn from your mistakes, your startup dream may not survive beyond the first few years.
We have rounded up the common mistakes most small business owners make:
Starting without a plan
Too many small business owners start their journey without a concrete business plan because they want to be driven by their passion alone. However, not having a clear strategy for establishing, managing, and marketing your business is the perfect recipe for failure. Even the best business idea needs a blueprint to survive the startup phase.
A detailed business plan helps establish the core strategies that will drive your business and make it easier for you to make critical decisions. It also allows you to assess the viability of your business.
Not understanding the market or your customers
Starting your business without identifying your ideal customer base or understanding the real landscape of the market can prove too costly. Your business will struggle to compete, and you will never know what the customer actually wants. That’s why it is crucial to invest time in conducting thorough market research.
Every great idea doesn’t become a successful business idea on its own — unless you narrow down your focus on the market and your target customers, you will continue to run in circles and make little progress.
Waiting too long to hire your team
Small business owners shy away from making hiring decisions because many view employees as a cost. Unfortunately, you cannot operate independently and do it all alone, especially if you want to scale your business. Don’t wait too long to onboard skilled candidates — with the right team in place, you will find it easier to navigate through challenging times.
Overlooking the importance of IP rights
Not locking down your IP rights such as patents, trademarks, and copyrights can result in your business going bust. Imagine coming with an excellent name for your company but not registering the trademark or checking if the name is already in use.
Don’t wait too long to take care of IP issues. Instead of relying on the internet, speak to a lawyer to understand what type of IP protection is required and get started with the paperwork. Taking care of the IP issues will also make your business more attractive to investors and help you secure investments easily.
Shying away from marketing
Regardless of the size of the operations, every business needs marketing. Underestimating the marketing needs of your business can result in driving away potential customers.
Most small business owners do not chalk out a clear marketing plan, resulting in inconsistent messaging and unclear expectations. Unless you invest in marketing, how will your prospects know who you are, what you offer, and how can the product benefit them? So start by crystallizing a detailed marketing strategy, focusing on all aspects of customer acquisition and conversion.
Avoiding the legalese
Even the best relationships can go awry. That’s why having solid contracts in place is essential. For instance, you have appointed a developer to create a mobile app for your business but you don’t have a formal agreement in place. The designer may end up having the IP rights to the app!
Similarly, if you have a co-founder, don’t wait too long to sign the necessary agreements setting out the details of your relationship, such as equity ownership and the role and responsibilities of each founder. Not doing this can pose significant legal challenges in the long run.
Setting unrealistic goals
Facebook or Apple wasn’t built overnight. If you expect astronomical returns overnight, you are already setting yourself to fail. This can impact your morale and also hurt your credibility in the market. That’s why it is essential to set achievable goals and slowly work your way up.
Resist the temptation of conquering it all — set smaller milestones and take necessary actions to achieve them. Once you achieve smaller targets, you will find it easier to aim for the bigger ones.
Underestimating the demands of a business
Running a successful business is easier said than done. Small business owners often step into the world of entrepreneurship without realizing that a thriving business also goes through a lot of hardships and struggles.
While running your own business sounds fun, you should be mentally prepared to face challenges daily. Don’t lose sight of the fact that building something valuable takes time and patience.
Want to avoid making these mistakes? Speak to a mentor
Owning and managing a small business is not easy. It is also not possible to altogether avoid making mistakes. But a mentor can help you develop the wisdom of identifying the potential pitfalls and making better decisions to protect your business even when you end up committing mistakes occasionally.
You don’t have to be alone in your entrepreneurial journey. Whether you are a rookie founder or have been around for a few years, a mentor can provide critical advice that can help you bounce back from your mistakes and build a successful venture.
If you want to accomplish your business goals and need a helping hand to sharpen your learning curve, it is time to enlist the help of expert mentors from Jupiter Business Mentors.
Jupiter Business Mentors is a platform set up to connect mentors to the start-up community and small & medium business enterprises to help them grow their business. With 35+ expert mentors across the industry on the same platform, finding the right mentor has never been easy. Simply sign up and create a profile so that Jupiter Business Mentors can suggest the right mentor for your needs.
Check out the various ways in which Jupiter Business Mentors can help you navigate your entrepreneurial journey successfully and avail of 90 minutes of free sessions with any six mentors on the platform.
