There are plenty of ways to ensure your business strategy will become one that leads to a succesful business. But, what about all the things you shouldn't do when starting a small business?
Keep reading for six mistakes that successful entrepreneurs avoid when starting and building their own small business.
1. Entrepreneurs don't skip market research
First successful entrepreuners never skip doing their market research when deciding to begin a small business of theit own. One of the first rule of starting a successful business and key to building a concrete business strategy is to research the viability of your idea and gauge the market and your customer base or target market.
Market research helps successful small business owners aware of their prospective customers as well as their potential competitors. Since you can't sell your product or service effectively without knowing and understanding your customer base or those who you'll be competing against, market research is incredibly necessary. Market research will help you lay the groundwork for a successful business and define your niche in a way that will help you stand out from your competitors.
2. Entrepreneurs don't choose the wrong team
Successful entrepreneurs choose who they want to hire wisely. According to Bill Aulet, managing director of the Martin Trust Center for MIT Entrepreneurship and author of Disciplined Entrepreneurship, picking the wrong employees to be on your team is the most expensive error entrepreneurs can make, as it not only results in a loss of income, but also a depletion in morale, Entrepreneur.com says.
"choosing who to hire and work with in a startup is like playing basketball in the schoolyard; you can pick your friends and play for them, but if you want to be good and continue to be on the court, you have to carefully pick yout team." Aulet explains.
For this reason, it is imperative to select people with varying skill sets to join your small business team.
3. Entrepreneurs don't rush into a business partnership
Just like successful entrepreneurs don't rush into choosing the wrong members for their small business team, they also don't jump to a business partnership. Just because someone may be your best friend, doesn't necessarilly mean they would make good match for you to be in a professional business partnership with. Even long-time coworkers and significant others aren't always the right people to go into business with and to maintain a business with.
while it may be easy to get excited about an idea for a small business with your partner, handling the day-to-day reality of maintaining a small business and running it properly is much harder work. Usually, the best business partnership is made up of two people with skills and approaches that are polar opposites. This will ensure that your small business is able to cover sufficiant ground without adding more employees, and it also force the partnership to think seriously and strategically about the business.
4. Entrepreneurs don't get discouraged
No one ever said it would it would be easy to start your business and to keep running. In fact, successful entrepreneurs know that even after you've begun your small business and gotten it off the ground, running and maintaining the business is a long and challenging road. One mistake successful small business owners avoid is that they don't get discouraged. Instead, successful entrepreneurs enjoy the process, including both the ups and downs.
In most cases, business owners will never reach some grand plateau of stability that's beyond failure and doubt, Entrepreneur.com points out. All small business owners and entrepreneurs will experience some disappointment and discouragement, but those who are successful in building their business will focus on becoming more resilient, learning from their mistakes, and bouncing back after failure.
5. Entrepreneurs don’t try to do it all on their own
Although when starting a small business, you may not have a great deal of funds, don’t let every responsibility fall onto your own shoulders. Instead of becoming addicted to doing everything on your own, save yourself some valuable time and energy that can be directed toward helping the business grow.
Although your expenses will increase when you contract your business, getting extra help from people who are more knowledgeable about and better trained for certain tasks will allow you to focus on doing better work yourself.
6. Entrepreneurs don’t skip the paperwork
While paperwork can be intimidating in any aspect, failing to do the correct paperwork when starting your small business can result in legal trouble, which will become an even bigger hassle to deal with. Because of this, successful entrepreneurs know to do the proper filings with the SCC to register their business, get a business license, and obtain an EIN name.
According to the Washington Post, about 50 percent of small businesses fail. While that number may be daunting, failure is avoidable with the right business strategy and mindset of a successful entrepreneur. To run a successful small business, make sure you’re focusing on what needs to be done, as well as what mistakes must be avoided.