Dangerous Errors That Can Kill Your New Business Stone Dead
The vast majority of new businesses that set up will never record a profit, and most will fail within two years. Those are stark realities of the startup world and should be heeded far more than the glamorous stories you hear about the joys of working for yourself and starting a new business.
However, for the vast majority of these failing companies, there is an element of owners digging their graves. Many people get started without understanding what is at stake and with disregard for many of the rules, regulations, and advice that is offered to them.
To ensure that our business is safe and has a high chance of success, read on. We’re going to highlight the critical errors and mistakes that can kill your business stone dead. Let’s take a closer look.
Many people have great ideas about products that improve their lives. But unless it is going to improve someone else’s life – in fact, lots of people’s lives – there isn’t much hope for success. Thorough market research is needed before any product development gets started, and once that product is finished, startups must have a robust plan in place to talk to potential customers in a language they understand.
Inadequate health and safety
Many startup owners begin a business in their homes and don’t pay any attention at all to health and security issues. It’s understandable, but from the second you move to an office and start hiring people, it’s critical. Ensure that your premises are fit for purpose, and bring in industrial electricians to fit electrics properly, registered engineers to secure equipment, and health and safety experts to provide safety audits. All it takes is one little accident, and your startup could be fined or sued for all you have.
It takes money to make money, unfortunately. And no matter how lean or bootstrapped your business idea is, it will be necessary to find funding. But if you are slack with money or underestimate the costs, you will be on a hiding to nothing. No one will lend you money or invest in your business if you are spending on fancy new equipment instead of the nuts and bolts of your business. And that means your new company will be locked forever in development hell.
Startup owners are notorious for being far too hands-on with their businesses than they should be. It’s understandable, of course. After all, it’s your vision, and your idea – and it is likely you have a strict view on how everything should be. The trouble is, once you start going down the route of micromanaging, you lose track of the bigger picture. You irritate your employees and partners, and you won’t have the time to do the activities that matter. Learning to delegate at an early stage is critical, or your business idea won’t have a hope of ever launching.
Have you ever suffered major issues in your startup? Why not share them with everyone in the comments section below?