When entrepreneurs decide to launch startups, the primary goal is to grow rapidly and become a top brand in the market. However, most of these new businesses fall off within the first year because of mistakes made in the early stages of operations. Here is a closer look at some of these mistakes and how to avoid them.
Failure to comprehensively study the market
When you decide on the target market, the chances are that there are other operators already running similar businesses. Failure to study the market is like setting the business for failure. You are likely to go into the market with what you think is the best as opposed to what clients wanted. This disconnect can easily kill the business on arrival and that’s why you need a proper company secretary service.
The market research should be done comprehensively to include all aspects of the new business and its ability to fit. Here are some of the main components to include in the research.
- The targeted population and its social-economic information.
- Competitors and their strategies.
- What the target clients want.
Launching the business without ample capital
Though you have a great business idea, it is prudent to appreciate that actualizing it requires ample capital. This is the cash for installing a good business structure, registering with relevant authorities, renting office space, and hiring staff.
If you do not have ample capital, it does not mean that the venture cannot be launched. You can get funds from other sources. Consider seeking a strategic partner who can help with raising funds.
You could also seek help from financial institutions. Remember to set alternative avenues to repay loans because the business might take some time before it can sustainably meet all its obligations.
Thinking that you can do everything
At startup, many people hold strongly unto their business ideas and think they can implement everything alone.
They are the leader, cashier, manager, and everything that the business wants. This is the wrong approach to take. With time, everything will start falling apart because you cannot be everywhere or expert in everything.
The best thing to do is structuring the business and seeking expert assistance. Consider breaking the operations into departments and defining their roles.
For example, the production manager can handle production, the marketing manager handle marketing, and finance expert to deal with all money related matters. Note that all these experts can be hired on a temporary or permanent basis to help the business launch and accelerate faster.