5 Mistakes All Entrepreneurs Must Avoid When Creating a Startup

Entrepreneurs are not married to a startup, not even their first one. Companies fail all the time, and startups are especially prone to falling apart. Making a new startup after the previous one fails is not only expected, it is the norm. That is why you need to know how to get a company off the ground right, because you're probably not going to do that once as an entrepreneur. You're going to do that a lot. Here are 5 mistakes you should know backwards and forwards so you can avoid them whenever you create a small business:

1. Not Thoroughly Researching Your Online Platform

Every company, whether or not you plan to sell online or not, needs presence on the Internet. Making that presence work according to your goals depends largely on your platform provider. Not doing the research can land you in an awkward position of having a site that does not actually help you get anything done.

Before you commit to a provider, figure out if they have services relevant to your needs. For example, if your site is a point-of-sale option, make sure the platform has built-in tools to help you handle those sales. Any little tool that makes your life easier is worth your time and money.

(FYI, we build websites using Wix - Wix combines powerful features with an easy-to-use and learn interface. But if you want more than a simple one pager, it's going to take some time to learn how to make a website that works for you.)

2. Not Providing Real Value

All companies are selling a product to somebody. That is the most basic function of a business. Unfortunately, many would-be entrepreneurs fail to remember that. They have a product, they build a company to sell it, but it does not provide value to anyone. More often than not, that is because it does not solve a problem that enough people have, or it tries to solve a problem no one really cares to solve because the problem is insignificant.

Before you decide to create a startup, make sure that your product is helping a large enough group of people. Do surveys, test the product in the wild - do whatever it takes to confirm the value of your product.

3. Assuming Intelligence

It might sound horrible, but when designing your startup and its product, you need to pander to the lowest common denominator. It does not matter if you are catering to geniuses - there is a lowest common denominator to them as well, and that is where you should target everything. That's because people are not always at their best, and there will be times that their heads will not be in the game, and your marketing could potentially go over their head.

Do not think of it as insulting your audience. Think of it as accounting for them at their worst, and making sure your message can reach them despite those dips in attention and strength.

4. Don't Fall for Every Deal That Lands on Your Lap

Starting a small business is costly. That's why most of your time as an entrepreneur will be spent looking for deals that could help you get the startup off the ground. However, just because you get a good deal does not mean you should take it.

A cheap deal is not necessarily one that works well for your business. Suppose that you might get a manufacturer to give you a good deal, but your product will end up low-quality and unappealing to your target market. No matter how bad it might feel, you need to make the right move for your small business and seek other opportunities.

5. Mistaking Revenue for Profit

Big numbers are fun. They are exciting. Telling people you raked in millions in revenue is great, but revenue is rarely representative of how much money you actually made. Making ten thousand dollars is promising, but not if you need 9,500 dollars to make that happen.

Don't get too focused on generating big numbers in a vacuum. Take a look at how much it would cost to get there. Instead, focus on profit. That may seem like a small difference, but that will come up when you decide on the quality of your product, as well as your target market. For instance, appealing to high-end clientele with top-tier and expensive products will rake in big numbers, but producing that kind of quality will inevitably be costly. Instead, consider selling a product with slightly less features to a different market so you end up with more profit.

Those are far from the only mistakes you can make when making a startup, but knowing about them should help out a lot. Avoid them, and you stand to make your small business's future much brighter.


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