Ten Common Mistakes by Start-ups

Content provided by a guest contributor.

An increasing number of entrepreneurs are entering the challenging new world of operatingL their own business.


We have listed ten common mistakes with some options to overcome them in the reference list below.


Please CONTACT US if you think we should add some more.


Lack Of Planning


Businesses that do not have a plan often lack direction and focus. The purpose of developing a business plan is not just to raise capital, but to direct the process of starting a new business. You need a plan.


Lack of Promoting the Business


A well-designed marketing plan is a way of ensuring your business is remembered and easily contactable.


Not Understanding The 80:20 Rule


This is when 80% of sales are from 20% of your customers, you may decide to spend the majority of time on those clients.


It is important to understand that those customers have strong bargaining power and although the sales turnover may be high the profitability is often low. Also, if you lose those clients you lose 80% of your business.


Undercharging for Products or Services


Some start-up businesses undercharge because they do not know how to work with mark-ups that take into account operating costs.


Extending too much Credit


Start-up businesses that extend credit may end up with a lot of bad debts. If customers do pay, waiting for 60 to 120 days can threaten sustainability.


Acting as if you are a Big Business


It may be tempting to act as if you are a long established big business.


Suppliers and customers are not easily fooled and will view you as dishonest. Remember all big businesses start off as small businesses.


Providing Bad Client Service


Customers will always be drawn to efficient effective service.


A happy customer will become a loyal customer. They will tell their friends and word of mouth marketing or referrals are one of the best ways to grow a business.


Letting Emotions Influence Decision Making


Decisions based on emotions without thought or analysis can be financially detrimental. For example, a pushy salesman wants you to buy an expensive item or to sign a two-year service contract. It’s best to take the information and say you need time to think about it.


Financing Growth


Growth is a good indication that there is a demand for a product or service. But can you finance the growth? Growing costs may include needing more people or machinery.


Lack Of Motivation


Entrepreneurship requires the ability to stay motivated.


Persistence, perseverance, and patience are key ingredients to claim a share of the market. The ability to keep going both financially and personally is often a problem.


Using a consultant and speaking to other entrepreneurs or a mentor can keep you motivated. Please CONTACT US for more details.