In this article you will know what not to do when starting a businessto make your way easier and have more chances of success.
The path of the entrepreneur is always different. As much as you have read, studied and even planned each of your steps; there will be defeats that will be caused by inexperience.
This is not to worry, since according to Henry Ford, “failure is only the opportunity to start again, only this time in a wiser way.”
However, this does not mean that you cannot prepare and learn from other entrepreneurs.
Below you will find a list of 6 things you should not do when starting a business; since they have led to the failure of many projects.
What you should not do when creating a company.
1. Confusing a company with a startup.
You must be very clear about the structure of your business idea.
If you plan to look for new forms of business, explore and investigate new opportunities, we are talking about a startup.
On the other hand, if you already have a proven business model that you want to start running; We are talking about a company.
Answering the previous questions can solve your dilemma: Business Plan or Canvas Model?
If you already know very well what business model you are going to follow, it is essential that you have a business plan beforehand. Since this is a map of your company, a guide that explains to third parties what your project is about, how you are going to execute it and what you want to achieve. But more than an explanation for third parties, it is a fundamental tool that helps you to be very clear about all the essential aspects for the successful operation of your business.
If, on the contrary, it is still not very clear who your customers are going to be, or what your product is going to be like; it is best to create your own canvas model. If you want to learn how to do it, click here.
2. Not having a plan.
When starting your project, one of the most common mistakes is underestimating the amount of money and time needed to launch your business idea.
Although the issue of financing can be complicated in some cases, this does not mean that it is impossible.
Your business plan or canvas will be the main tools to follow to determine if what you are doing is going well, how you are going to do it and how much it will cost to do what you want to do.
Without this prior planning, it is possible that you do not take into account simple details, or even relevant ones in the progress of your business. And as a result, you could end up without capital or even out of business.
3. Do not outsource topics in which you are not an expert.
You may be in a position where you want to keep your costs as low as possible, and what better way to achieve that than to do it yourself, right?
However, there will be topics in which you will invest a lot of valuable time; but truly it is better to leave them in the hands of experts.
For example, in legal issues of company incorporation, taxes, accounting, acquisition of certain permits, licenses and legal services; among others.
They can take a lot of time that can be invested in innovation issues for your company.
4. Not knowing how much time you should dedicate to see your fruits.
Building a business does not happen overnight. You can be lucky if the first few months go very well, as it can also take years.
It may also happen that you think about resting a little more because your business is already running. However, something new can emerge, be it a new product or a new line of business; for which you will have to motivate yourself and work to the maximum.
This also applies to your salary. If you were organized and achieved excellent results, this will mean great financial rewards for you. But, once things go well, these new profits will be reinvested in your business with the idea of making it grow or make it more solid.
In theory you are growing and earning more, but the reality is that in your pockets you will have the same amount for yourself. Do not despair, the work of a good harvest will be tangible.
5. Pursue every opportunity.
when you think of what not to do when starting a business, remember this error very well. Since you should not commit it, if you want to establish clear objectives.
Are you chasing only momentary gains or are you building a long-term profit model?
These are questions that Lewis Howes asks us.
Entrepreneurs often have the ability to spot any opportunity, but this same instinct can also be their weakness. Since chasing new opportunities, it can affect the main objectives.
Howes recommends setting boundaries for the type of work and clients you want. This is vital to achieving long-term success. He reminds that saying “no” at the right time can be a good practice for startups.
6. Dream! But with open eyes.
It is not bad to think big and have high expectations about what you are passionate about and what you are doing. But remember that success is not achieved in the first six months.
Your expectations must be touching ground. Do not let your passion and optimism seduce you so much that you do not think that something can go wrong. Or that you won’t need a partner; or someone who manages your business.
One of the great characteristics of being an entrepreneur is the proposition of ideas; but keep in mind that not all are worth it. There will be some that bring you more and others that are simply not valuable at all for your purposes. That is why you must have your feet on the ground and know what objective to aim for.
Trying to try all the ideas can waste your savings or capital trying.
So that this does not happen to you, first put all your ideas on paper, know their costs, the factor of the unexpected and then decide if it is worth trying. Only after being very clear about it, move on.
Conclusion.
Maybe these examples of what not to do when starting a business be very logical on paper. But sometimes these practices are so obvious that we skip over them.
Tell us about your experience, what mistakes have you made that you wish you hadn’t made due to the lack of information?
And remember, if you are really interested in creating your own business, you can read our book “How to create a company while working: Discover how to manage your time, manage your money and motivate yourself while creating a company and working for another” , where you will find all the information you need to found your own company, without having to leave your job.
