Starting a business isn’t so hard as actually keeping it running. Many people start new businesses everyday, but only a few are able to get anywhere with it. Due to a lack of experience, startup owners are susceptible to mistakes. If those mistakes are handled properly, the company may be able continue, and the owner will have learned a lesson. If not handled properly, there’s a chance the company will fail before it even really gets started.
If you’re starting a business, here are some lessons you need to prepare yourself for so you won’t have to learn the hard way:
Not handling money correctly - Having enough money is a big deal for startups. If venture capitalists, loaners and donors give you money, you need to use it wisely. Don’t spend money on ANYTHING until you are 100% that your company will benefit from it and that you will know how to use it. You don’t want to end up getting stuck with something you can’t use or don’t know how to use. While corporate trading organizations like SherwoodIS.com may be able to offer you trade credits, you can’t expect a complete bailout.
Trying to do everything on your own - Thinking that you will be able to handle everything on your own is one of the worst possible mistakes you can make. 'Attempting to launch a startup with no help,' this post on Business.com explains 'can be detrimental in a myriad of ways'. This is because there are so many tasks and factors associated with a business - any business - that you simply cannot perform them all perfectly. Can you handle the bookkeeping alone? Website design? Social media campaign? Will you be able to contact media services? Create ads all by yourself? You WILL need help from experts.
Not being careful enough when selecting the initial team - While you don’t want to do everything on your own, you won’t want to hire the wrong people, either. Don’t just select someone based on skill and experience. Keep an individual’s character in mind as well. It’s extremely important that everyone be pleasant to work with, not just for your sake but for the company’s. Some friction and disagreement here and there is a good thing. TOO much friction and conflict is bad.
Ignoring a hunch - If your instincts are telling you to go in a certain direction, don’t ignore those instincts. Instead, use your hunch to your advantage. Just don’t entertain a hunch for the sake of entertaining it - it must be backed up with some research and key performance indicators analysis.
Being too impatient - Feeling as though you are in a constant state of urgency is a bad thing. It can be counterproductive in the long-run. Even the best laid plans don’t always go the way they are expected to. Instead of panicking, or making a rush decision, it’s best to stay patient and keep the long-term goals in mind. You could end up making an even bigger mess of things by rushing to meet a deadline rather than taking a step back and waiting. A post on Foundersspace.com states an important virtue for startups: 'practice patience or fail fast.'
The majority of startups fail within the first five years. Your startup can fall in the minority category, just as long as you try to avoid making mistakes and learn from the ones you do make.