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- Planning only for Success
Being optimistic when starting a business is a good thing. However, exceeding that optimism and assuming all will be well is the beginning of the end. As an entrepreneur, you need to be prepared for anything and have a contingency plan in case the business does not go as was planned
- Failing to analyze and understand the market
This is another mistake entrepreneurs do over and over again. The most important thing, even more than understanding the industry, is understanding the market. You need to ask yourself whether or not the products and services you offer are in demand that particular place, at that specific time. Understanding the industry is subsidiary to understanding the market. Before jumping in with both feet you may want to consider taking an online business course , it will certainly prove helpful.
Spend money to earn money. When starting a business, avoid the urge to do everything on your own, even those that you are not good at so that you can save money. Focus on the tasks you are good at then delegate the rest to expertise in those areas.
- Focus on satisfying the customer first.
It is typical with most of us that when we start our business, however small it is, we start visioning how much money we intend to make and how well-off we plan to be. While dreaming for your sweat to be rewarded, shifting the priority from customer satisfaction to being rich erodes every effort you’ve made.
- Choosing the right investors for the wrong reasons
The primary thing to consider in an investor is the mutual agenda of both of you towards the same vision and morals of your business. Money comes second or even third to this. While a good investor can help you make money, money cannot help you make a wrong investor right.
Failing to establish who is the major decision maker with your partner
Small startup businesses do not have well-developed rules, and decision-making procedures may not be well-formed. It is therefore essential that at the start of a partnership, the two of you decide who holds the 51% shares and can make final decisions in cases of indecisiveness. This prevents disagreements and saves time that could have been wasted going through an issue over and over again.
- Failing to create an entity
It is essential that when you start a business, alone or with partners, you need to remove the liability off yours and your partner's shoulder by registering for limited liability corporation (LLC). There are other corporations, but LLC is the cheapest. We strongly recommend you use Swyft Filings, let the pros handle the paperwork.
- Creating business on the basis of friendship
Less than half of the companies that are formed on the basis of friendship ever go well. In as much as starting a business with a friend can be fun, that will change three months down the line when you cannot say no to the friend-partner who is wasting the business’ money. It is advisable to do business with a friend only if you cannot avoid it.