Written by: Amber Ramsey
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Starting a business is a journey. Sure, there will be some ups and downs along the way. And even a few mistakes here and there as you test ways that work for you and discover ways that don't. However, there are certain common pitfalls that many entrepreneurs have fallen into the trap of doing, sometimes without even knowing it. See below how to identify them and how you can avoid them.
Mixing friendship with business
While the thought of doing business with your best friend (and not a stranger) may seem like a dream come true for some, sometimes it is the close bond you share that can actually end up working to your disadvantage. Sometimes, the lines between business and friendships can become blurred. So, when you are not giving each the full attention they deserve, this can be where the wheels start to come off.
Failing to plan and planning to fail
As with most things in life, preparation is key to getting the ball rolling and ensuring it keeps rolling in the right direction. That is why drawing up a marketing plan and business plan, in particular, is so vital to your business's success. While a business plan or 'goal plan' will detail all aspects of your business, providing a guideline on how to get there, a marketing plan will detail how to get your name out there and be more visible in the marketplace.
The importance of a product rollout
As far as marketing your product or service goes, you'll need to launch a product rollout to ensure everything goes according to plan. And that it's profitable at the end of the day. After all, a lot of effort goes into the unveiling of a product launch, so you'll want to make sure it's as detailed and as accurate as possible. Fortunately, there are a few tools available nowadays that can assist you with this.
So how to keep product development on-track? Consider using a roadmap template that sets it all out for you ensuring that tasks are prioritized, deadlines are met, and everyone understands the mission of the business, paying specific attention to pain points that may need to be addressed. Without this tool in your arsenal, you're not automatically destined to fail. However, it may be more difficult to achieve the success you envisioned without them.
The wrong business structure
One of the biggest drawbacks of choosing the wrong type of business structure is that it may be difficult to change it after the agreement has been entered into, not to mention time-consuming and expensive. Given the many types of business structures that are available to pick from, whether it's a Sole Proprietor, a Close Corporation, or a Public or Privately listed company, it's best to do the proper research beforehand to avoid becoming committed to a business structure that may not end up suiting your requirements at all.
Hiring the wrong person for the job
Hiring the right people for the job can be a cumbersome process. However, when the process of recruiting the right people for the job is done thoroughly, then you avoid hiring the wrong type of employee. Because when an employee is not the right fit for a position, this can lead to extra expenses such as additional training as well as ongoing training so that they are up to par with what's required of them. But then again, it might all be for nothing at the end of the day because when someone's not the right fit for a position it'll be like trying to fit a square into a circle. Neither of which is beneficial for the employee or your business.
Setting a budget and not sticking to it
Setting and sticking to budgets is a vital component to stay on top of your expenses while seeing to it that you achieve your financial objectives as well. Failure to do so might mean that you can't see the woods from the trees when it comes to your overall financial goals.
In summary, it's easy to fall into pitfalls if you are not aware of them. However, it’s when you plan ahead and give yourself time to anticipate these hurdles in the road that you can avoid them and follow along the right pathways on your journey to success.