Are you making common startup mistakes with your new business?
Perhaps you are making uncommon startup mistakes.
For instance, marketer Eric Sui revealed one of his startup mistakes in his podcast.
He read a book recommending he avoid micromanaging his business. He neglected the business so much that as a result, his startup was worse and not better as Sui intended.
Let’s get started by discovering if you are making these dreaded startup mistakes.
4 Things You Shouldn’t Neglect When Running Your Business
Whether you’re setting up your startup business or you’ve been established for a while now, you’re likely aware of how complicated running a business can get.
Even a seemingly simple business idea requires a great deal of work outside of producing your product or delivering your service. It can therefore be easy to neglect certain aspects of your business, but to do so could be a major mistake.
Make sure that you pay attention to the following considerations.
The Supply Chain
Before you’ve even won your first job, you will need to have a supply chain set up. Regardless of your business type, there will be some level of a supply chain, and it’s up to you to make sure that your client gets their product.
If you are running a service-based business, you will need to have the supplies that will enable you to complete the project. Even a digital project that is delivered remotely will require you to have certain software, whether it’s Microsoft Word, some kind of CAD (computer-aided design) software, or anything else that you need to complete the project.
It all comes down to being able to deliver the promised product or service. Without a reliable supply chain, you may lose potential customers and even develop a poor reputation within your industry.
If you are dependent upon a more traditional supply chain, managing it can be difficult as you have to consider your suppliers and keep track of any potential issues on your end. Some clients can be somewhat forgiving of supply hiccups, especially if it has affected your competitors as well, but you should always strive to make things run as smoothly as possible.
Larger companies with complicated supply chains sometimes choose to expand their business to allow them to supply themselves. This allows them to know exactly what’s going on at all times and to potentially save or even earn more money.
The Financial Side
Income and cash flow are the lifeblood of a business, allowing it to continue running and providing you and your employees with a wage. Unfortunately, business finances are more complicated than simply “earning more money”.
Even popular and seemingly successful businesses can fail, as the business model itself may be untenable. If the outgoings of your business are consistently higher than your income, then you may have a problem.
If this is the case with your business, then it may be worth hiring a business accountant to go over your recent finances. They may be able to help you save money where it counts. Certain accountants also specialize in tax accounting, so could find ways to improve your situation by taking advantage of certain tax breaks that you may be entitled to.
The world of business is fraught with paperwork, for better or for worse. There are certain guidelines that certain industries should follow, and to neglect doing so could be very painful for your business.
Depending on your industry, certain certifications will declare your business as being of high quality, and consumers will look out for these.
For example, a company that is part of the production or manufacturing industry may need to follow GMP guidelines. These guidelines are designed to make sure that the processes within your company are safe and that the production line results in a consistent product.
Earning these certifications doesn’t just look good for your customers and potential employees, but it can improve your productivity and yield, which potentially earns you more money. It’s definitely worth researching what appropriate certifications are within reach for your business.
Marketing and Sales
It seems obvious that you should always aim to sell your products, but this doesn’t come naturally to everyone. After all, many small business owners started their businesses because they specialize in a certain field, such as construction or digital artwork. But even the best product or service needs some level of marketing, and many professionals are unfamiliar or even uncomfortable with the sales side of things.
Depending on your business, it may be an idea to hire a marketing expert. Outsourcing your marketing is often a good option, especially if you aren’t in the position to hire a full-time member of staff. Agencies and freelancers alike can provide marketing services, so you don’t have to.
While you’re at it, consider moving to the online market. Social media and eCommerce are some of the fastest-growing resources for businesses and will allow you to connect with a larger potential customer base.
Startup Mistakes FAQ
What are 4 mistakes startups typically make?
Startups don’t have needed supplies, new businesses spend more money than they bring in, new business owners don’t get needed certifications, and new business owners refuse to outsource.
Wrapping Up: Startup Mistakes to Avoid
This post began by sharing one of the startup mistakes Eric Sui made. He read a book that inspired him. He took the advice, a hands-off approach to running his business, and instead of improving, the success of his business deteriorated.
As you can see from Sui’s examples, making startup mistakes like these can be dangerous to your business growth.
By reading this post, you discovered four common startup mistakes and one of marketer Eric Sui’s startup mistakes that he made early in his career.
Readers, please share so new entrepreneurs avoid these startup mistakes.
I look forward to your views in the comments section. Can you suggest additional startup mistakes new business people should avoid making?
If you want to see examples of new businesses that went on to become giants in their industry, check out these business blog examples.
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