The 5 Biggest Startup Mistakes to Avoid

Most people starting a new business jump in with enthusiasm and drive. It does, however, take more than passion to make a new venture successful. Considering that a high percentage of startups inevitably fail, there is a lot entrepreneurs can learn from those who have gone before. The following are five of the biggest mistakes that startups often make.

Starting Too Soon

The excitement of starting a new business has caused many entrepreneurs to open their doors before they were ready. Entrepreneur discusses how starting the business at just the right time also means not waiting too long either. It is important to make sure everything in your business plan is in place. Establishing important dates and deadlines along the way and then sticking to them will help you avoid starting too soon or too late.

Lacking a Specific Selling Point

When first starting a business, it is imperative to have a focused selling point. Too many people aim for a large market believing they’ll quickly snag more customers. Instigator Blog points out that inside a big market is an incredible amount of diversity. It is crucial to pinpoint your target customer and narrow your marketing approach. This is particularly true for a startup.

Inadequate Financing

Too many startups plan financially for exactly what they need and nothing more. Unexpected costs almost always come up, especially in the beginning. The bottom line is that every new business needs to have more money available than its founders think it will need. Hongkiat.com advises that a new business must always have emergency funds available for when the startup needs to go in a different direction or embark on a backup plan.

Ineffective Internet Presence

Having just a basic website is not enough. According to Forbes, having a detailed plan for your website is just as important as having one for your business. There are so many options when it comes to building an effective website that finding what works for your business will require trial and error. This means many entrepreneurs will need to spend more time on their website than they initially planned.

Ignoring the Customers

Many startups can get so caught up in their product and services and developing a brand that they overlook the customer. American Express points out that a startup may be focusing on one aspect of its business while its primary customers are actually more concerned about something else. Staying connected to your customers through surveys, feedback and tracking data is crucial.

It’s important to get your business off on the right foot. Avoiding these five mistakes will go a long way to ensuring your startup is successful.

We assist start-ups by helping to implement a proper insurance portfolio that will allow you adequate coverage throughout not only the start-up phase, but long-term. Contact us for more information.