Opening a new business is never an easy task. Even if you have started a successful company before, you know there are always some struggles with getting things just right.
Whether you have been here before or not, it’s always important to try to predict all of the different problems that could come up when you’re setting up a new business. By planning ahead you can be prepared for almost anything. To help you get started with your new company, here are some of the most common pitfalls entrepreneurs have to deal with when getting started.
Using Cheap IT Solutions
These days, it is impossible to set up and run a company without putting some IT and tech in place. Not only does this make running the business a lot more convenient and efficient it should also save you money in the long run. Using the right tech and IT can be very cost-efficient. Some entrepreneurs do try to cut cost by using cheap offshore development. Unfortunately, there are quite a few cheap offshore development problems you might run into, that could end up costing you quite a bit to fix. It’s always worth investing well in your business’s IT and tech so there are fewer issues in the future.
Rushing The Recruitment Process
There’s a good chance you’ll need to recruit some employees to join the team as soon as your company launches. Even though you might need them in the office and ready to work on day one, that is no excuse to rush the whole recruitment process. If you do try to employ people too fast, you could end up employing the wrong types of applicants. Applicants who are a bad fit for the company. Ideally, you should start the recruitment process a couple of months before you plan to open your business. That should give you enough time to thoroughly check resumes and conduct interviews. That’s plenty of time to find the perfect people to join your team.
A Lack Of Funding
These days quite a few new business owners use a lot of their own personal savings to get things up and running. If you are unable to save enough money for this purpose, there are other options available. For instance, you could always try to get a business loan from your bank. Alternatively, you might want to try to find an investor to fund part of your startup cost. No matter how you initially source your business, you need to make sure you have enough funding in place. If you try to start without enough cash, you could run into some severe money troubles further down the line.
Too Much Competition
Some people find there is just so much professional competition there is no way they can operate their business at a profit. They end up losing too many customers to the other business operating in the same niche. There are a couple of solutions you can use to try and beat your competitors. First of all, it’s best to find a really small niche for your business to operate. That way, there will be fewer competitors trying to take your customers. You should find you end up with more loyal customers who are attracted to your unique niche. It’s also worth taking a closer look at your competitors to see what they are doing. By taking a look at their products and marketing, you could maybe get some inspiration to create something that is very different from what they are doing. You’ll find customers who come to you because you’ll have exactly what they are looking for.
Wasting Time With Meetings
One of the biggest errors that can cost all new entrepreneurs is wasting time. Once your company is officially operating, you’ll need to make sure you manage your time wisely. Any wasted time could end up costing you quite a bit of money. One of the biggest time wasters for any company is meetings. You should always ask yourself whether it is really necessary before you do call one. If you can get the message across in a quick email or phone call, then you should always try that before setting a date and time for a long-winded meeting.
Burying One’s Head In The Sand
When there is a problem with the company, it is important that you face up to it. That will give you the best chance of tackling it head-on before any damage is done. Many business owners are more inclined to ignore any issues and problems, and this can quickly result in the problem getting bigger and bigger. By then it could be costing you a lot of money and could have become very difficult to resolve. Don’t ignore small issues either. These small issues can become larger issues that can prove to be detrimental to a company.
Ignoring The Demand For Sustainable Businesses
The majority of clients and customers now want to spend their money in sustainable businesses that are trying to do their bit for the environment. If you set up a company that is sustainable and uses green processes and materials, you should find that you attract a variety of customers. Be sure to share your efforts in your marketing materials and on your social media platforms.
Starting a new business hard work and you will face many challenges before you even begin to work with and serve your customers. However, now that you know that you might face these pitfalls, you can try to do everything you can to avoid them! Plan ahead and you’ll be able to be able to tackle whatever comes your way. Here’s to YOUR success!
Carolyn R. Owens has over 25 years of proven experience and serves as a Career Strategist, Executive and Leadership Coach. She is the President of Infinity Coaching, Inc. where she can help you up-level your skills, so you can up-level your income, career, business or life. Infinity Coaching, Inc. provides coaching, organizational training, personality assessments, and a signature program, the Infinity Coaching Inner Circle. Carolyn is certified to give both The Energy Leadership Index Assessment and Myers Briggs Type Indicator Assessment. You can find out more about both assessments and other products and services at https://infinitycoaching.net.
