There are some things you should not do when starting your business because if you do this things, they might have negative effect on your business.
I’m not saying you cannot make mistakes when starting a business but there are some mistakes that are so costly that when made can kill your business instantly, you should avoid these mistakes.
Don’t start without a business plan
There is popular saying that if you fail to plan, then you plan to fail. I actually believe that because in business if you don’t have a business plan, you will not be consistent at what you are doing.
You might be excited when you started your business but because you do not have a business plan which can lead to a state of confusion, that can make you give up on your business.
The reason why most people don’t have a business plan is because they do not know how to write a business plan and it’s understandable because writing a business plan is something that you need to learn.
Another reason why some business owner’s don’t do business plan is because they do not want to pay someone to do it for them even though they know it is important.
You can learn how to write a business plan and I suggest you give it a try even if it is not an extensive one but if you don’t want to try, you can hire a professional to write it for you.
Don’t do a business because others are doing it
Don’t go start a business because everyone is doing it or because it’s trending. You should not do a business you do not understand or have enough knowledge about.
I know it is easy to go into the same business that your friends or colleagues are into but if the business doesn’t work out as expected just know that you are alone. So when going into business make sure you are not going into it because others are doing it too.
One of your major reasons for starting a business is to add value to lives of people around you and not just doing business because everyone else is doing it.
Don’t employ staff based on favoritism
When starting your business you might need the expertise of other people which might lead you to employing staff for your business as you do not want to overburden yourself with all the work. When employing your staff you should not do it based on favoritism.
Some business owners employ their relatives or family friends maybe because they can pay them lower salary compared to what they will pay a professional.
When employing staff for your business you should do it based on what the person has to offer to your business in terms of skills and expertise. I’m not saying that you should not employ your relatives and family friends but if you must do that, make sure that they have the required skill for the position you are employing them for.
Don’t borrow loan
It is always tempting to start your business with loan because credit firms keep advertising loans to you and you will feel it’s a quick way for you to get money and start your business.
Getting a loan from a bank or credit firm could actually mean working for them as most of the profit you are making might be going to them due to huge interest rate on the loan.
When starting a business sourcing funds from family and friends seems to be one of the best options of raising funds and I think you should give it a try because most of them won’t ask for interest and even if they do, it won’t be as high as that of the bank.
Another option you have is starting your business with little capital and growing it gradually till it gets to the level where you want it to be.
Don’t start without getting advice
Getting advice about the business you want to go into makes doing the business easy for you to do.
Most times a lot of people want to independent, they want to start the business and run it on their own without getting advice from no one.
It pays to get advice from people who have been in the business before you so that you can avoid the mistakes they made and also learn some business tips from them. I feel getting advice from successful businessmen is something that is worth it even if you pay for it.
Don’t do business based on emotions
Naturally as humans we always want to do things we enjoy doing but most times what you enjoy doing might be able to pay the bills. A lot of people will tell you they want to build their business around their passion, I’m not say it is not a good thing but if it is not profitable just opt out and do another business.
Do not go into a business because you just feel like going into it based on your emotion.
Knowledge is an important factor that will help you when starting your business because it will help you make logical decisions which will impact your business positively. Knowledge about your business, about your customers and about your competitors will go a long way in helping you make right decisions when it comes to business.
Your pricing shouldn’t be too high or too low
Pricing is an important factor for any new business because the pricing is part of the things what will determine if customers will accept your product and if you are going to make profit.
Do not price your product too high as this will drive your customers away or they it won’t allow them patronize you regularly.
You should not also price your product too low as this will allow you grow your customer base but you might not make profit because the price you are selling at is too low.
Don’t do a business that’s too competitive
When a business is highly competitive it mean a lot of other businesses are offering same or similar services to meet needs of customers, of which this can cause low demand for your product or even hide your business in the crowd.
Most times we are lazy and don’t want to think outside the box so as to come up with something new. Take your time to think about your business and you will definitely get fresh ideas.
One easy way to come up with something new is to modify what has already been done already.
Don’t start a business without doing market research
Market research refers to finding business information about the market you want to go into. Such information includes number of prospective customers, number of competitors, needs of customers and best location for your business.
I know it can be tasking to carry out a market research but I can assure you that it is worth it because it will help you overcome a lot of obstacles.
Due to the availability of internet these days, you can now carry out you market research online depending on the type of business as a lot of research work has been done online already.
Don’t do business without investing in marketing
Marketing your business means promoting your business so that your audience can see it which will enable you to make sales. Having good product alone cannot make your business successful, you also need to be able promote your product so that the world can see it.
The truth is that you will need to spend money to promote your business but there are also some means that requires spending less or spending nothing but paid advertisement seems to get a faster result.
For a new business do both offline and online marketing as this will help you get more customers to your business fast
Don’t start a business you are not capable of doing
Any business you intend to start should be a business you are capable of doing in terms of finance, resources and skills.
Imagine someone who is new to business and he wants to start a multinational bank. He can do it but he needs to start small, maybe from a microfinance bank to a regional bank and from a regional bank to a national bank.
Some people are just dreamers, they see big business but they don’t work towards achieving it.
As a business owner, you need to be able to set realistic goals which you know you can achieve.
Don’t wait for the perfect time to start
There might never be a perfect time for you to start your business but you can always start your business now as you do not need to start big.
The reason why most people have not started their business is because they are waiting to starting big, they want a big office building, cool furniture in the office and a brand new car to start with.
You should try to start your business now even if it means starting small from there you can star growing your business.