- Do not take financial planning for granted
Financial planning is a key step in your start-up business right from the first day. Make sure you have enough capital to start out your business as a professional one. The lack of proper financial budget will result in an amateur business. A majority of companies list financial shortage for one of the reasons their businesses failed. Ensure that you have a set budget for your business and stick to it.
- Do not forget the vision you started from
One of the biggest mistakes entrepreneurs make is not having a clear vision or goal while starting out. This results in them forgetting what exactly they were working towards achieving and they end up going on tangents. When you don’t know what you’re aiming towards, it becomes increasingly difficult to figure out how to achieve it. Planning everything in detail will make it easier for you to stick to that plan and get to your goal it that much quicker.
- Do not think you “know it all”
Having a great commercial concept as an entrepreneur? Hire or meet with an expert businessman to give you advice on how to take it to the market. Lack of business expertise manifests itself in many ways, for example when you’re too focused on making the product sell instead of creating value for your customers and keeping in mind what service they need. Trust that there are professionals who can do certain tasks better than you can.
- Do not hire the wrong people
Bill Gallagher of Gallagher Group says “’Keeping a business afloat is all about putting square pegs in square holes, and round pegs in round holes. Shuffle people around too much and the ship sinks”
Know who the right person is for each position. Hire the very best person you can afford and make sure they can do the job and do it well. Avoid going into partnerships with friends or close family. Such partnerships are fraught with complications and as emotions and relationships get involved, it becomes hard to keep things on a business level and not a personal one.
- Do not forget: “Market, market, market”
For every dollar you spend on developing a product, spend five times more on marketing it. You may have a killer product, but it is of no use anyone unless it is properly marketed. Take the time to implement a month by month marketing plan and revisit that plan to make sure it is meeting your product’s needs.
TIP: Things to consider in marketing plan: client relationship management, visibility-related activities, and targeting of new prospects and potential referral sources