Introduction

One of the most challenging tasks anyone can undertake is running a new business. It is such a big deal since you must get lots of decisions right for things to work out as planned. Many new businesses failed to survive after the first year due to a number of wrong calls by the owner - the entrepreneur. Of course, it is nearly impossible to take some wrong steps as a startup. But then, making a few mistakes that may not adversely affect the new business is different from making grave errors as a beginner. So in this article, I briefly talked about 3 most common mistakes new entrepreneurs make.

1. Fund misappropriation: New entrepreneurs may have all the funds they need for the startup. However, learning to spend the right amount of money in the right places is crucial for any business at infant stages. Each aspect of the new business requires varying amount of funds. Appropriating these fund to the various parts of the business requires skill and discipline. Sometimes, startups normally find themselves at the extreme ends. At one time, they spend too much money where less would have been fine. At other times, they spend far little money where heavy investment should be done. So new entrepreneurs should avoid these extreme ends and strike a proper balance between spending more and spending less where appropriate.

2. Inadequate marketing strategies: Big cooperations understand the powerful effect of marketing and they spend millions each year in various marketing campaigns. Sometimes, new entrepreneurs focus on other aspects of their business and leave marketing with little attention. This is very bad. Marketing sells your new business to the outside world. Without marketing, no one knows about the your startup. And your publicity will continue to reduce very much. Marketing is one area that suffers with most startups. But when you have a proper marketing plan, then you are making efforts in the right direction.

3. Ambiguous goals: Bright ideas and visions for the new business usually make for exciting reading. But then, some new entrepreneurs struggle to set the boundary between realizable goals and attempting mountains impossible to climb. When a startup sets a very big goal, it struggles with limited resources and knowledge to meet such goals. It is advisable to create short term goals and work on them. Short term goals are easily realizable over a very short period. Reaching many short term goals is preferable than making a long term goal that is difficult to attain. While there should be a long term goal, short term goals are the best to start working on. Create step by step ways of achieving the goals and set a time limit for them. Do not attempt to be a household name in the next 1 year. It does not always happen like that. Such a goal is too big to attain for a new business.

Conclusion

Starting a new business is very challenging, but making sure every pieces of the puzzle falls in place is very crucial. A round peg in is square hole is something an entrepreneur would not want to try in the new startup. If you avoid the most common mistakes made be new entrepreneur such as the ones above, success in your business won't be elusive after all.