If you have invested in a startup, or have simply been hired to manage the firm, you likely know that these ventures are risky.
Trying to launch a brand new company takes a great idea, initiative, structure and enough funds to get the company off the ground.
While most successful business owners share their stories, and explain what they did correctly, few share their mistakes. Below are three things that no startup should ever make.
Cut Corners – Be very diligent about learning all the rules and regulations about every aspect of the business before starting out. There are various legal and operational parts that are involved in running a company, such as finance, legal, human resources, technical, etc. For example, you may not be aware of the different taxes that UK business have to pay, and you may not pay all of them. However, this is very risky, and will most certainly catch up with you later. When the fees add up with percentages and fines, that alone can put a startup out of business. Refer to Gov.uk to learn about business taxes that you may need to pay.
Lack of a Business Plan – Some startup owners believe that having a novel idea is enough to become successful. Unfortunately, that is not always the case. An idea is a non-tangible thing that lives in the mind; however, establishing a company to transform that idea into a commodity is an entirely different ballgame. Therefore, startups need to have clear and precise groundwork for the firm’s establishment and growth. Many experts recommend updating a business plan annually to reflect the most pressing matters. Each plan should list specific goals, and monetise them. For example, stating that you would like to garner half a million dollar in profits by the second quarter or next year. Second, explain how you will realise those goals in terms of staff involvement and investments. Create priorities and delegate who will work on each task. Finally, set deadlines for the commitments, and check back every month to make sure you follow through on them.
No Marketing Strategy – In order to launch a startup, you need to create brand awareness so that the public knows about you. Therefore, you need to assemble a clear marketing strategy to advertise your services. From the start, you and your partners need to decide on an exact vision for your brand, and incorporate it in all your marketing materials. A big reason that new businesses fail is that they don’t have an exact vision for their company, which fails to provide a unique and memorable brand image. If potential clients cannot understand what you’re trying to sell, they won’t buy it.
Remember that when it comes to launching a new business, you will likely not be able to handle all areas needed for success. Don’t micromanage and bring on knowledgeable staff members, partners and investors that can help turn your dream into a reality.
Content Marketing Consultant
The Internet Marketing Academy
(Image courtesy of Dollarphotoclub)