If you’re thinking about starting your own business, you have likely done some research. You may be aware of statistics, such as that 90% of small businesses fail in the first year and half of the remaining fail by the fifth year. While that means that 10% survive at least five years, you definitely do not want to end up on the negative side of that statistic. One of the best ways to increase your chances of succeeding as an entrepreneur is to avoid some of the common mistakes that others in the same position have made.
Expanding Too Quickly
You’ve likely encountered a local business that seemed to be doing really well. Maybe, they even opened several more stores in the area. Then, suddenly they go out of business. Unfortunately, when a business expands too quickly, they may find that their profits no longer cover their expenses. Instead of growing, the business quickly fails. This doesn’t mean that you can’t expand your business, but it should be done carefully. Carefully consider the financial implications of expansion. It is important to remember that the more you expand, the more people you are going to need to hire. This is going to cost you more money. If the added expense won’t increase your profits, hold off a little longer on expanding.
Not Setting Yourself Apart from the Competition
While you don’t necessarily need to come up with a product or service that is so unique that no one has ever thought of something similar, your product or service needs to have a unique angle that will draw people in. They need to have a reason to pick your company over another one that might be more established. If you can’t show potential customers why they should pick your company instead of another one, your business will struggle to survive.
Ignoring Your Online Presence
In today’s world, many people look online before deciding if they want to try a product or service. Even before your business has opened, it’s important that you establish your online presence. You should create a website as well as establish yourself on several social media platforms. If you are not familiar with social media or you are unsure how to adequately establish a good online presence, hire someone else to handle this for you. While it will cost extra initially, a high-quality online presence could make a huge impact on your company’s success.
One great way to establish your online presence early on is to offer deals through your social media accounts. Offering these deals will draw in customers who will then recommend your company to their friends and family.
While these are only three of the mistakes that new entrepreneurs make, avoiding them will increase your company’s chances of success. The more things you can do to get your business headed in the right direction, the more likely it will be one of those on the positive side of the statistics involving new small businesses.