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10 Business Mistakes for Start-Ups to Avoid

10 Business Mistakes for Start-Ups to Avoid

La'Shon Anthony | SmallBizLink

Too many people jump into a business without thinking it through. Success involves analyzing, planning, and implementing strategies for the venture. In this article, you’ll find ten mistakes often made by start-ups and tips to prevent the pitfalls.

1.Not enough research on the business. The idea is not feasible or the owner lacks important information.
For businesses with a physical location:

a) Is the area getting sufficient foot traffic?
b) Are surrounding business owners unified and networking?
c) Could the business survive in good and bad economic times?
d) Is the community safe? What are the neighborhood crime statistics?

2. Miscalculating the size of the market and the owner’s potential share. Not knowing the customer.
Know the competitors in your target market. How have they achieved success? Don’t re-invent the wheel – use what works! Determine whether there is a substantial demand for your product or service. According to an eHow article, find out the demographics of the area and whether your intended product or service will be useful.

3. Underestimating operating costs and not having enough money.
Start the business with sufficient capital and reserves. For a brick & mortar establishment, estimate costs for:

a) the lease
b) lighting
c) heating
d) water
e) insurance
f) equipment
g) postage
h) staff
i) office supplies
j) printing
k) marketing
l) software

If you have an internet business, have you projected annual web hosting, domain, and other service provider costs?