5 Mistakes Most Start-Ups Make and How You Can Avoid Them
With the job market in a pretty sorry state right now, more and more people are launching their own businesses to fight back. The notion of being a self-sufficient entrepreneur is nothing new. For decades, people with a product they’re passionate about have forayed in the world of start-up businesses.
But the sad fact is, many start up businesses fall at the first hurdle. With almost 50% of start-ups disbanding in the first 5 years, something isn’t adding up. There’s something we’re doing wrong.
In this article, we look at 5 of the biggest mistakes fledgling businesses are making and how you can make sure you avoid them:
Not Knowing Your Target Market
Perhaps the biggest error you can make is not clearly identifying your target customer. Sure, your amazing product will change peoples’ lives, but what people? If you don’t target the right audience, there’s every chance you’ll fail. To prevent this, identify what is called your ‘ideal customer’.
This is the person you see buying and using your product. Outline what they want – e.g. to be able to buy their children nice Christmas presents– and what they need – e.g. a way to make extra cash at home. Target both of these, but play on their needs. This way you’re much more likely to secure a sale.
Lack of Budget
Leaving your current career to launch your own business is a big financial risk. And without the proper budget, and financial know-how behind you, chances are you’ll lose money rather than make it. Everything from rent and bills, to insurance and wages need to be catered for.
If you’re not particularly in-the-know when it comes to budgeting, enlist the help of an accountant. They’ll be able to help you work out how much money you’ll need to allocate to each aspect of business, and help you spend sensibly.
Another reason why things are looking bleak for your new business is that you chose the wrong location. Not only can a bad location eat into your budget, it can also be the reason your products aren’t selling.
Prime high-street locations are always the location of choice for retailers, but it may prove more cost-effective to sell products online. In the early days at least. You can set up an ecommerce website, or even sell products via Facebook to help get your brands name ‘out there’.
Hiring The Wrong Staff
For many start-ups, the rush to hire staff can lead to their downfall. While sharing the workload is important for growth, you may end up hiring the wrong person in a hurry. Instead, run the business alone for a while. This allows the dust to settle, helps you get to know your business, and means you always work with the tight people..
When the time comes to hire, you may consider using the services of a specialist recruitment company to help you out, when the time comes. They will help you hire the right people, for the right role.
Once your start-up is off the ground, do you expect people to find you by accident? Of course not. The biggest reason why fledgling businesses, don’t go the distance is that their marketing strategies are ineffective or none-existent.
You don’t have to hire a marketing team, or be an expert, to carry out effective campaigns. Using social media, direct mail, and online marketing, you’ll be able to promote your business. If you have the financial backing, consider pay-per-click and social media optimization campaigns to increase your presence in the search engine rankings.
There’s never a guarantee that your start-up will be the next Apple, but with careful planning and consideration you can give yourself a fighting chance. Weigh up your competition, identify your unique selling proposition (USP), and take the time to find your feet.
Outcomes UK is a specialist recruitment company that can help your start-up find the right people to fill vacancies. Contact them today to find out more.