When you start a business it can be tricky finding the right balance between getting it right and getting it wrong.
There are lots of things that can happen within the first year that could mean the end for your business. Some of these will be no fault of your own and can just occur randomly, however some you can avoid completely. It is a well-known fact that most businesses fail within the first year and only half make it to the five year mark.
Not Having An Idea
Every business starts with an idea, this idea needs to be unique and help you stand out from the crowd. When you think of your idea make sure it is something that hasn’t been thought of yet. However, it can be extremely difficult to think of a brand new idea that hasn’t been done before. If this is the case then how about you take an existing idea, one that has been done before and find ways to improve it. A great way to do this is to think of what needs improving by putting your own thoughts and opinions together with other users. You could do a poll to find out what customers like and don’t like about certain businesses. Once you have made your idea a reality it is time for company formation.
Not Setting Realistic Goals
When you start a business it is a good idea to have some goals set to keep you on track and help you run your business as effectively as possible. In business it is a good idea to make sure the goals you set are SMART goals. This means that they are specific, measurable, attainable, relevant, and time-based. If you don’t set goals then you will feel yourself coming off the rails regularly at different intervals throughout the startup journey.
Spending Too Much
A real problem that you can run into as a business owner is overspending. There are many things that you will need to purchase when it comes to starting your business. When it comes to starting a business you need to have a general idea of how much you will need. The average cost of starting a business is around £5,000 but many businesses will spend way over £25,000 in the first year.
Costs involved include the monthy cost of renting office and storage space, the money it costs to employ people, and any equipment that you need to buy or hire. If you have a budget in mind and try not to go over this.
Ignoring The Customers
Finally, as a business your customers are your most important source of income. Without your customers there is no point to your business and it may as well close down. You need to keep your customers and clients interested in yur business and you can do this in a number of different ways. You can listen to any complaint and queries they have and answer them speedily and efficiently with a relevant answer. Don’t just brush them to the side or pass them to someone else, this is going to make them feel undervalued.