7 mistakes people make when they decide to start their own business.
Starting a business is a daunting task if you've never been involved in the backend of building a company. There are so many things you need to do & so much to remember. You don't want to do anything that could cause legal or financial disaster.
I've been there and know the stress, fear and excitement that come when you make the decision to strike out on your own. I've made some of the following mistakes and others have happened to friends of mine.
1 - Doing it JUST for the money:
This will bite you in the butt every time. If you don't enjoy, better yet have a passion for, what you are building your business on you will become bored of it quickly and will not become successful. Your attitude will cross over to your customers and the way you do business. Would you want to give your money to a grumpy-guss?
2 - Doing it all alone:
I don't mean as a single person, living alone. I mean not having some sort of support system, a cheerleader-type. We all need someone in our corner to vent to and celebrate our successes with. Find support from others going through the same thing, family, friends, mentor or coach.
3 - Spending too much on promotional materials
The time it will take for you to design (or find someone else to design) your business cards, brochures, etc would be better spent researching additional products or services you can offer or networking with potential customers. Stick with simple business cards in the beginning if you feel they are essential. Your company details will most likely change several times in just the first year and you'll be spending money you don't need to, changing your cards to match. Think "virtual" when you think of promotion and marketing.
4- Buying Hardware and software in anticipation of future need.
OK, everyone loves new toys. I am the first one to admit that when a new version of software I have comes out, I want it & I want it NOW! Bad idea. When starting out your funds are limited so inventory what you already have, what you need and what you would like to have. If you have the basics and don't really need anything more yet, WAIT. The customers will come and you'll be able to purchase that new stuff.
5- Not asking for help
*Hand going up over here* ALWAYS ask for help if you're stuck, stumped, befuddled, etc. You get the idea. I'm stubborn and hate asking for help. I want to do the research and find my own answer. I look back now at some of the things I've learned but could've learned much, much quicker if I had just asked for help. Find someone who knows how to do what you don't and ASK. Most people are happy to help as long as you aren't asking for hours of their time for free.
6 - Losing Momentum
It's so exciting to get going with your new business; the idea process, deciding on the name, picking out colors and logo, designing your website, deciding what to write on your site. And while all that is going on you are envisioning all the customers you will be getting soon. The problem is, once all the basics are done, it becomes the day-to-day marketing, networking, promoting that will get to you. Some people thrive on the contact; others would like to avoid it like the plague. Either way, it needs to be done. Even if no customers come from what you've done this week, go back over what you've been doing and re-evaluate, adjust & try again. Just remember, KEEP GOING!
7- This one, I feel, is one of the worst mistakes you could make.
Repeat this to yourself often and loudly if you have to: I AM A BUSINESS OWNER NOT AN EMPLOYEE!
If you go into this with the same mindset you've always had as an employee, you won't get far. You decide what to charge, how to handle late/no payers, contract wording, everything. It's all up to you. If you don't think the customer is a good fit to work with, don't. You may need the money but you don't need the aggravation.
I've been there and know the stress, fear and excitement that come when you make the decision to strike out on your own. I've made some of the following mistakes and others have happened to friends of mine.
1 - Doing it JUST for the money:
This will bite you in the butt every time. If you don't enjoy, better yet have a passion for, what you are building your business on you will become bored of it quickly and will not become successful. Your attitude will cross over to your customers and the way you do business. Would you want to give your money to a grumpy-guss?
2 - Doing it all alone:
I don't mean as a single person, living alone. I mean not having some sort of support system, a cheerleader-type. We all need someone in our corner to vent to and celebrate our successes with. Find support from others going through the same thing, family, friends, mentor or coach.
3 - Spending too much on promotional materials
The time it will take for you to design (or find someone else to design) your business cards, brochures, etc would be better spent researching additional products or services you can offer or networking with potential customers. Stick with simple business cards in the beginning if you feel they are essential. Your company details will most likely change several times in just the first year and you'll be spending money you don't need to, changing your cards to match. Think "virtual" when you think of promotion and marketing.
4- Buying Hardware and software in anticipation of future need.
OK, everyone loves new toys. I am the first one to admit that when a new version of software I have comes out, I want it & I want it NOW! Bad idea. When starting out your funds are limited so inventory what you already have, what you need and what you would like to have. If you have the basics and don't really need anything more yet, WAIT. The customers will come and you'll be able to purchase that new stuff.
5- Not asking for help
*Hand going up over here* ALWAYS ask for help if you're stuck, stumped, befuddled, etc. You get the idea. I'm stubborn and hate asking for help. I want to do the research and find my own answer. I look back now at some of the things I've learned but could've learned much, much quicker if I had just asked for help. Find someone who knows how to do what you don't and ASK. Most people are happy to help as long as you aren't asking for hours of their time for free.
6 - Losing Momentum
It's so exciting to get going with your new business; the idea process, deciding on the name, picking out colors and logo, designing your website, deciding what to write on your site. And while all that is going on you are envisioning all the customers you will be getting soon. The problem is, once all the basics are done, it becomes the day-to-day marketing, networking, promoting that will get to you. Some people thrive on the contact; others would like to avoid it like the plague. Either way, it needs to be done. Even if no customers come from what you've done this week, go back over what you've been doing and re-evaluate, adjust & try again. Just remember, KEEP GOING!
7- This one, I feel, is one of the worst mistakes you could make.
Repeat this to yourself often and loudly if you have to: I AM A BUSINESS OWNER NOT AN EMPLOYEE!
If you go into this with the same mindset you've always had as an employee, you won't get far. You decide what to charge, how to handle late/no payers, contract wording, everything. It's all up to you. If you don't think the customer is a good fit to work with, don't. You may need the money but you don't need the aggravation.