Common Mistakes of Startup Business Owners

Some mistakes are easy to correct. Other mistakes take a lot of work to fully recover from because they are so damaging. This is why it is important for you to learn about the mistakes entrepreneurs tend to make so that you can avoid falling into the same pitfalls and from going deeper into the mistakes that you are currently making in your business.

This article briefly reviews some of the most common mistakes business owners make when starting up a business. For more detailed insights you can purchase my e-book by clicking on the link below;

“Ten Common Mistakes of Startup Business Owners and How to Avoid Them”

#1 Starting without a plan- so many of us have heard this phrase before; “....he who fails to plan has already planned to fail...” Well, this quote (paraphrased) made by Benjamin Franklin is a working principle till date. This is one mistake that many startup owners make. They usually say that they have it all planned, but it's mostly just in their head. The truth is, it is VERY important that you draft out a plan for your business before starting out. Doing this will help to visualize the mental picture which you already have for your brand. Another good thing is that it is easier to carry other people along when you have a business plan that is solid. So, before you make your first move, try drafting out a business plan.

A business plan should consist of;

The vision/mission- the aim and purpose of your business venture.
Goals- the targets you hope to achieve with your business that will guarantee success.
Products or services- the type of products or services your business offers in the market.
Competition- the other companies (which could be within/outside your niche) that you are competing against and how yours will be different.
Marketing strategy- the strategy that will be used to communicate with your target market.
Funding- the source of funds that will be used to start and operate your business.
Number of employees etc.

#2 Telling everyone about your business idea- if you are like most people then you might be looking for reassurances that your decision to start a business was the right one. And so, you keep sharing your fantastic idea(s) with just about everyone you come in contact with. Dear reader, this is not the way! I mean, you can tell a few persons whom you trust and are certain of getting honest feedback from, but you need to limit the number of persons you tell, especially before you start. This is to safeguard your mind from all forms of negativity and discouragement. We all know that there are a thousand reasons why you should not carry out any business idea you might have, but then, truth is, you really do not know beyond all doubt whether it will work or not!

So, as much as possible, set your mind on the task before you and if you must ( and I think you should), talk to people who have more experience in your field of choice rather than those who know nothing about it. You will definitely learn from such people.

Again, startup owners should learn to embrace constructive criticism than avoid it. For instance, if you meet people who are more experienced in your chosen field, there are chances that such persons would analyze your business plan more critically. Do not feel bad about it, instead try to reason with them. If you do, you would likely discover that you may have to readjust some of your plans for your own good.

#3 Having too many or too few employees- besides hiring too early, most startup owners at some point, would have to consider the option of hiring employees. And when this situation arises, business owners need to carefully consider what number of employees their business can comfortably sustain. This is weighed by different factors, chief of which is the revenue being generated by the existing business.

Business owners should avoid hiring less than the number of employees needed at a particular time, as much as they need to avoid hiring too many people. Striking a balance between the two is your best bet here! If you hire too few persons, you will likely overwork your employees and they would fail to deliver efficiently. On the other hand, if you hire too many, you will not be able to meet up with the financial obligations that come with hiring.

So, let’s say you own a food truck business that sells to a maximum of fifty persons in a day with an average per/head cost of $5, you may not need to hire more than say, two persons for a start, not until there is an increase in demand which will subsequently lead to an increase in the revenue generated.

There are many more mistakes that startup business owners make, to learn more about them kindly download my e-book at no cost by using this link below;

“Ten Common Mistakes of Startup Business Owners and How to Avoid Them"

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