Every successful business was once a small dream. If you too aspire to take your start-up to a global level, avoid making these 7 common mistakes many others have made in the past and regretted.
Missing Out on Preplanning
In order to become successful, a business must work upon pre-planned schedules and targets. It helps the business to attain a certain level of discipline and makes every person more responsible for achieving their targets.
Identify the organization’s driving force. Figure out if profits matter more or number of customers. Once you know where you’re headed, work becomes focused and it takes lesser time to strike at the bulls eye.
In case a given plan is failing, pre-planning will give you time to make required changes and implement them too. Last minute changes are always very confusing and may lead to business disruption.
Lack of Financial Support
In the beginning you may work at a break-even point of no loss no profit, but if you plan to grow business, constant investment is a must.
And leave aside investment; you need to have ample cash in your pocket to meet daily expenses incurred for running a business. Start-ups may have lack of surplus funds to devote to daily expenses. For running business smoothly, you will require financial support.
If not banks, try using the services of invoice factoring companies, who provide cash deficient start-ups with instant cash.
Making Unrealistic Plans
Having a concept in mind and implementing it are two different things.
The road to success will pose several expected or unexpected challenges, and one should be prepared to handle both.
Be confident about your abilities and potential, but never become unrealistic about them.
Failing to do Smart Business
In order to see your business flourish, you may want to take everything in your hands. However, this is not a productive way of handling business.
Be smart and learn the art of making others work under you. Save your time for the most important things, while making others responsible for other less important things. Remember, division of work is important for individual growth and that of the organization as well.
If more hands mean more work, it also means you shell out more salaries.
If your business can’t afford a large manpower, don’t bother with hiring. Hire people you can easily pay at the end of every month.
When profits begin to increase and your business is capable of earning salaries for more people, you may hire.
Follow the golden rule – hire people you can pay.
Start-ups always look up to bigger players as role models and try to imitate them in every way.
But, don’t forget they have ample resources to make new investments, whereas you may not. Don’t get easily fascinated by new equipment launches or advancements. They may not be very cost-effective for you.
Be watchful. Try to gather resources instead of spending available resources.
Besides, stay away from investments that will make tax deduction.
Taking Short Cuts
We talked about being smart in the points above, but unfortunately, many start-ups consider short-cuts and smartness to be synonymous.
Don’t take any short cuts with efforts. There is no substitute for them. What you can do is divide the responsibility so that no one’s shoulders are overburdened.
Remember, success has no shortcuts.