Starting a business is very exciting and daunting. There are many ways it can go wrong, but also many ways it can become very successful. There will be mistakes along the way but don’t worry about making mistakes. Most mistakes can be fixed and you can always rise back up. However, it would be very beneficial if you can avoid common mistakes made by people who are starting a business. This way you can be more efficient and successful.
Starting a business in this modern age
In this day and age, the business world has experienced significant changes mainly because of technology. It is easier than ever to build a business on your own. In addition, there are so many new types of businesses that you can do, especially online. Small businesses are also the backbone of many of the world’s economies. They offer employment opportunities to many people. According to the ISEAS in Singapore, there are currently 70 million SMEs in Southeast Asia and account for 99% of business activities in the region. Small businesses account for large portions of ASEAN nations’ economies.
Considering the promising business climate for small businesses, it is a great time to start building your own business. However, there are many things to look out for when starting a business. In this article, we will highlight the 10 most common mistakes made when starting a business. This way you can avoid them.
10 Most Common Mistakes
Now let’s discuss the 10 common mistakes people make when starting their business. These are usually made because of lack of knowledge and oversight. Don’t feel bad if you have made these mistakes because they are very easy to make and everyone has done them.
1. Misreading or misjudging the market
The market is always changing and new trends always pop up. However, knowing which trends will last is a whole different thing. It is very easy to be swept up by a trend and make mistakes that affect your future. A good example of misreading the market is the fidget spinner. It was very trendy a few years ago but today the market is non-existent. The trend of fidget spinners was merely a fad. Be careful with trends and reading the market.
2 Improper goal setting
Every business needs a proper goal. A good framework for goal setting is the SMART goals. SMART stands for Specific, Measurable, Attainable, Relevant, and Time-bound. If your goals fulfill these things then it is a good goal. However, many people often forget one of these things when making goals that negatively impact their business. Be sure to have a goal that is ambitious but reasonable for your business. Goals that are too low or conservative can also be bad since they impact growth.
3. Impatience and Fear
Being impatient and rash with your decision-making is also a common mistake. Most businesses take some time before being profitable. Some people can be discouraged and end early during the early stages of a business, either because of fear or impatience. So just wait and the time will come when your business can succeed. And even if it fails, quitting too early may lead to you missing out on many things.
4. Lack of marketing or wrong marketing strategy
A common mistake is also related to marketing. Businesses with a great product or business plan can still fail if nobody knows about it. Marketing is very important and if done wrong it can fail a business. Some people either invest too little in marketing or invest in the wrong marketing. So be sure to know your audience and choose a marketing strategy that fits your business best. This way your resources are allocated more efficiently.
5. Too much flexibility, too little formalization
It is hard to have formalization in a new business. Formalization here means the usage of contracts and documents in your business. The flexibility does make it more fun and manageable. However, too little formalization means that accountability may be an issue. Of course, too much formalization can also hinder progress. So you have to find a good balance between these two.
6. Setting prices too low or excessive promotions
It may seem like a good idea to use a low price when at the early stages of a business. You can attract more consumers and generate more sales. However, if you set your prices too low you will not make a profit or less of it. In addition, when you decide to raise your prices existing consumers will move away from your business because the low prices were the reason why they were there. You have to find a balance between attracting new consumers and gaining profit.
7. Targeting the wrong market segment or misidentifying target
Targeting may seem pretty easy since products are typically produced with a particular consumer in mind. However, you can experience a mistake in targeting because of many other factors. First, your target consumer may already have an existing business that they use so your business won’t be attractive to them. Your consumer base may also experience a shift in preference which means that they won’t buy your products. Mistakes like these are very easy to make, luckily they are pretty easy to fix so don’t worry.
8. Too much and too little spending
Now comes the issue of spending on a business. Businesses need money to expand and grow. However, if you spend too much or too little it will be bad for business. Spending too much will mean that the return on investment is harder to achieve and getting a profit is harder. You may also end up with a lot of debt. Spending too little will mean that your business’ potential will be unrealized. A good rule of thumb would be to spend what you are willing to lose.
9. Hiring employees
Hiring employees is definitely important for a business. You can’t run a business by yourself, especially if your business is growing. However, you can make a mistake by hiring the wrong people, not hiring enough, or hiring too much. Employees cost money and they have to be a worthwhile investment. If you are not careful then employees may have a negative impact. If the number of employees doesn’t match your business needs you can either waste money or miss out on opportunities. Try and find a balance when hiring employees.
10. Not committing to the business enough
Lastly, it’s a matter of commitment. Commitment to a business is usually what leads to success. If we give up easily or do not commit to our business, we can’t expect to succeed. New business owners have to stand by their business even if at that time it does not seem successful. Steve Jobs committed fully to the business that he created in a garage with his friend. If he did not stay committed and dedicated, he would not have achieved the level of success that he did. So commit to your businesses and stand by them. Stand by your businesses and give them all you have.
So now we have discussed the most common mistakes that new business owners make. There are many ways to make mistakes but also many more to succeed. Don’t wait around to start your business. These promising times are the best time to start a business. If you are worried about the initial costs or about your lack of knowledge, don’t worry. AsiaCommerce is here to help. We offer services that range from export imports, procurement and sourcing, logistics, and forwarding. We can help with reselling, sourcing, and dropshipping. In addition, we offer extensive educational content that can help you develop your business skills. Join AsiaCommerce’s membership today to get many benefits for your business!