Avoid These Mistakes When Starting a Small Business

Starting a new business is a complex process requiring you to make all sorts of decisions.

Many of these decisions will have long-term consequences for your company, so it’s vital that you start things off on the right foot.

Avoid these mistakes when starting a small business.

Risky Financing

One of the worst things you can do when starting a business is begin without a solid plan to guide you through the first years of growth.

You’ll also want to be careful about how much personal debt you take on to finance your business.

If you have one, using a 401k to fund your startup can be a much less risky option.

Ignoring Market Research

All the money in the world can’t help you if you ignore what your market research tells you.

Market research is there to ensure that your business has real growth potential and that you’re not wasting precious time and energy.

If the research goes against the vision you have for your business, take some time to reevaluate your plans before moving forward.

Going It Alone

Everyone needs someone to go to for business advice. Ideally, this would be either a business partner or a mentor—someone who already owns a successful business in your industry.

Ask your team questions, develop plans together, and compare recommendations until you have the best plan possible.

Assuming You Know Everything

Even if you’ve been working in the same industry you hope to open a business in, don’t assume that you know all there is to know.

Look for new information, techniques, and best practices so that your business doesn’t suffer from the limits of your knowledge.

A growth mindset is key to financial success.

Undervaluing Your Goods and Services

One of the easiest mistakes to avoid when starting a small business is undervaluing the goods and services you provide.

Don’t be tempted to do work for free or for a fraction of the usual rate—you’ll just find it harder to raise prices later.

Undervaluing your business can also hurt your confidence when talking to investors and clients.

Starting a business is stressful, but we hope these tips help you avoid some of the most common mistakes facing entrepreneurs today.