In the past weeks, we discussed the vital skills required and things to consider before setting up a new business. Another topic worthy of discussion and also equally as important as the previous topics is how as a start-up, you need to avoid the following mistakes to ensure a smooth and successful business.
In the past weeks, we discussed the vital skills required and things to consider before setting up a new business. Another topic worthy of discussion and also equally as important as the previous topics is how as a start-up, you need to avoid the following mistakes to ensure a smooth and successful business.
1. Not consulting with legal representatives (attorneys)
The CEO of a reputable Nigerian company, Chinwe Azikiwe, once learned the hard way, if she could do over some of the earlier stuff, it would be not skipping out on hiring a good legal representation who would draw up a proper business contract and location leasing agreement. In her own words "you cannot do it all by yourself, hire a good business lawyer to draw out a good contract and save you from all the legal mess that might follow. Not doing this would be tantamount to being penny wise and pound foolish". Never underestimate the power of a good business attorney in your business.
2. Hiring the wrong people on your team
Hiring the wrong people can prove to be one of the costliest mistakes that entrepreneurs make, which not only results in loss of income, time and energy but also a depleted morale. Choose who to hire carefully. It is very important to choose people with varying skill sets that all share the same some common values with the business. Their goals and business goals must align.
3. Inefficient marketing.
Marketing the products or services you offer is what drives your business at the end of the day. During the creation of your business plan, a good marketing plan with a budget has to be included and then acted upon. But marketing is not all about just posting a “hurry and buy it now” on social media pages or placing offline/online ads. What you should have done during your market research is to identify your target market how you plan to reach them. Next is to act, marketing is not free so use all your revenues wisely.
4. Taking every business advice
When you're first starting out, you may not have many people to consult regarding your business issues, so you rely on the few people you think can help. For instance, you bring on investors not just because you need money but also because you need business advice. But not every advice should be taken. While advice is frequently invaluable, it is however, not 100 percent reliable. In fact following every advice that comes your way can land you in hot waters. Learn to filter the business advice as they come when you are just starting your new venture as most of them can be very subjective.
5. Pricing
Pricing accurately can prove to be very daunting for most first time entrepreneurs and some of the costliest mistakes reportedly have arisen from inaccurate pricing of the goods and services we offer. If you do not know how to factor in all the parameters to come up with an accurate pricing system, hire someone who knows how to, even if it's just on a temporary basis.
In the end, do all you can to avoid these costly mistakes. Your new business venture will thank you for it.
Author: Chinwe Azikiwe
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Tips on How to Start a Business: Part 1:5 Must have entrepreneurial skills
Tips on how to start a business: Part 2:5 Things to consider before you set up your business
Tips on how to start a business: Part 3:5 Checklist for Starting a New Business
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