Starting a business? Here’s how to avoid common mistakes made
Starting a new business can be tough and we all worry about failing. It’s important to stay grounded and make sure you have a solid plan. We’ve put together some common mistakes that new businesses often make so you can avoid them and start off strong.
Being product focused instead of market focused
It’s really important to spend time developing your product, but it’s just as essential to know if there’s a market for it and who your customers are. When you understand your audience, you can make something that meets their needs. Remember, you’re not just making the product for yourself, you’re making it for them. Putting too much into product development early on, especially if you’re on a tight budget, can be risky. Finding a balance between creating your product and researching your market is key.
Too much, too soon
When you’re starting out, it’s easy to feel like you need to offer everything under the sun. It’s better to focus on one thing and do it really well.
Make sure the thing you choose to specialise in has a good-sized market so it can keep your business going. Keeping it simple and focused will not only make your idea more attractive to potential customers, but it’ll also be easier for you to manage.
Not filing for the proper legal structure
To get your business on solid ground make sure you get your business registered. It’s really important to have everything official to avoid problems down the line.
Then, choose the right business entity for your needs. This decision impacts your taxes and liability, so it’s important to pick wisely.
And don’t forget to protect your intellectual property. Trademarks, copyrights and patents can feel like extra steps but they’re worth it to keep your ideas and brand safe.
If you skip these steps, you might end up dealing with unnecessary headaches and costs later on. So, by taking the time to focus on these areas early, you’re setting your startup up for a much smoother journey.
Trying to do everything yourself
Starting a business is challenging, but you don’t have to do it alone. Find someone you trust to share your thoughts on your ideas, strategy and any challenges. Talking things through can help you to see your business more clearly and stay focused on what truly matters.
Not making a business plan
We’ve all heard that famous saying “if you fail to plan, you’re planning to fail.” Even a simple one-page plan can make a huge difference. Your plan should cover the basics like how much it costs to run your business, what you’ll charge, who your customers are and why they’ll love your product. This helps you stay focused and keeps your goals clear. Plus, having a plan can really help when you’re talking to potential investors. It shows them you know what you’re doing and have a clear path to success.
At FWD Accounts, we support start-up businesses by getting them set-up with online bookkeeping tool FreeAgent, and offering a range of services and tailored advice. Contact us for more information.