20 Mistakes to avoid

when starting a
business.
Business Communication Assig
By- Jasmine
MB
According to the data provided by the U.S Bureau of Labor Statistics, 20% of the
businesses don't survive past the fifth year. Therefore here are some Do's and Dont's that
startups can take into consideration while starting their own business.
Do's

1) Implement a proper bookkeeping process - According to Paola Gracia , vice president of

Pursuit, every startup should have a proper bookkeeping to make smart decisions and grab
good opportunities. It will also help in knowing the financial status of the firm.

2) Make a business plan- A business should always have a business plan i.e. they should know
about their customers , demand and supply. A proper mapping of the above mentioned details
are necessary for a successful business.

3) Get organized- Prioritize the work a running a small business can be like running a circus
with a lot of things happening at once, therefore a list of prioritize should be set everyday.

4) Understand your market and target audience- It's important to recognize that building a
great product often doesn't translate into a successful business. Many companies find
themselves focusing on a market that's simply too small to build a big business in." – George
Deglin, co-founder and chief executive officer, OneSignal.
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5)  File for the proper legal structure and business registration - "The biggest mistakes that
startups make are not registering their business, picking the right business entity or protecting
their intellectual property. These three areas are crucial to a business starting right, where if not
done properly, will cost valuable time and money to correct." – Heather Green Miller, attorney
and owner, HGM Law Office. 

6) Create a marketing plan – According to Sam Sheppard the co-founder of Cabana, a detailed
marketing strategy is needed that shows initial acquisition of users and customers. A detailed
plan should be there on how to get the first user, first 10 users and so on.

Don't

7) Don't partner with wrong investors- "Investors are more than just financial backers" - Krish
Subramanian, co-founder and chief executive officer, Chargebee.

8) Don't avoid contacts - "One of the biggest mistakes a business owner/entrepreneur can make
when starting a business is the failure to implement contracts. No matter how good relationships
may be, they can come to a screeching halt when systems and agreements are not put in place."
– Michelle Colon-Johnson, founder, 2 Dream Productions.
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9) Don't hire too soon –  CEO and president of Dickson Keanaghan says that it is very easy to run a
business with part-timers , sub-contractor and services of other professionals therefore one should not
hire full time employers too soon.

10) Don't underestimate capital requirements – Capital is the main component for a business so
instead of having less business requirements an entrepreneur should focus on the challenges and
delays that may occur due to less capital.

11) Don't waste money - Handling money incorrectly is a death statement, resources should be put
into good activities and hiring should be done properly.

12) Don't give yourself the wrong salary - "Paying yourself too little or too much [is a mistake]. It's
often easier to determine the salary for a new hire than determining an owner or partner's pay.
Consider paying yourself a percentage of revenue. Whatever you choose, make figuring out your pay
– and that of your partners – a practice and foundation to healthy expectation of management."
– Diana Santaguida, co-founder and creative director, Seocial.

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13)  Don't under value your product or service – You don't want to be known as the company of
freebies therefore you should price the product or service just the way it deserves. It should neither
be priced too high or too low.

14) Don't launch too quickly - "When you start to see success, it can be easy to assume that growth
will continue, and the best way to make the most out of it is to simply copy and paste your working
formula. However, if you … expand your business too rapidly, it could have dire consequences. You
may find that your period of growth was only temporary, and end up stuck with a bunch of new staff
but no work and no funds to cover them. That's why it's important to take a slow and steady
approach to expansion, and never act on a spur of good results." – Mark Webster, co-
founder, Authority Hacker.

15) Don't expand too quickly – It's necessary to take things slowly and steadily even when your
company faces a boom. You should never act on the spur of good results as it could dire
consequences and you may find out that your boom period was only temporary.

16) Don't be afraid to fail – Audery Darrow president of Righteously Raw says that an individual
should not fear failure as it is one of the keys to success therefore one should learn from their own
mistakes.

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17) Don't try to do everything yourself – James Zimbardi, chief executive of Rent Items advices to find
trustworthy advisors to discuss business ideas, strategy, challenges, and progress. He further says to always
have four to six people around you who can give honest feedbacks so that you make less mistakes

18) Don't hire the wrong people - "Different skill sets and backgrounds are needed for the
different positions you'll want to fill. When you get started, make sure you have hard-working, all-around
generalists who can do everything you need them to" – Devin Miller, attorney, founder, chief executive
officer and managing partner, Miller IP Law.

19) Don't overpromise or underdeliver – A business should only take up targets that it can fulfill
successfully. For  having  a boom a company should not take up targets that it can not fulfill and vice-versa.

20) Don't underestimate the demands of business -  "The biggest mistake startups make is
underestimating the demands of the business. Documentaries and blogs about startups are making people
think optimistically; this is because the information available does not highlight the hardships of starting a
business, but it glorifies the end, which is a thriving business. Because of this, people think that a startup is
easy and fun, when in reality, it is quite the opposite. Startups take most of your time and money. It can
even ruin relationships." – Esther Meyer, marketing manager, GroomsShop.

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Conclusion 
Starting a business is difficult. Launching a startup is even more challenging. Aside from facing the
challenge of attempting to build a company from the ground up, many entrepreneurs have little prior
experience in the business world. Even when they have an incredibly awesome idea, complex
problems arise, such as managing the young enterprise, handling finances and hiring employees on a
budget.
Due to a lack of experience, many startups endure the misfortune of failure -- if they launch at all. Be
sure to not add to their tales of disaster.

Reference
https://www.businessnewsdaily.com/7398-startup-mistakes-to-avoid.html