2020 is definitely the year where everyone has some sort of online business going on. Either they are cornered to do so as the result of unemployment from the pandemic, as an added side income for the rainy days or just simply jumping on the bandwagon.
But if you’re really serious about starting a business that you want to keep in the long run, it’s important to fully understand the risks and opportunities that will be presented to you as you pave your way to entrepreneurial success.
Most start-ups are have this burning embers of passion to start a business that is truly commendable but big visions can blind them from the minor details that some people tend to just do ‘cincai’ with. Big mistake.
If you’re an aspiring entrepreneur, run through these checklists and be sure to avoid these mistakes from the get go.
1. Irrationally Eager With Your Ideas
A light bulb goes off, feels like an Eureka moment, suddenly you’re imagining yourself with a heap load of cash in a bathtub. It’s easy to feel like your idea for a business is a sure win but truth be told budding entrepreneurs tend to feel like they know the market well based on probably a need within their circle of friends and families and not the goldmine gap in the market that everyone desires to fill. Always check thoroughly the strengths, weaknesses, opportunities and threats of your ideas before embarking on a business venture.
2. Targeting Everyone As Your Market
The end goal is of course to be a force to be reckoned within your respective industry, but even Facebook started off in Harvard then slowly became available to the general public. Say you want to start a brownies business; it is wrong to assume that your target market is everyone even though you feel like literally everyone will enjoy your baking. Only by narrowing down your target market to only include individuals likely to convert into leads and then customers, you’ll be able to focus your marketing budget where it counts or else you’re just wasting money.
3. Micro Managing Every Single Thing
Budding entrepreneurs can quickly become obsessed with how to run their business to the most minutiae details that they would be terrified to trust subordinates to carry out their ideas. While wanting things to be perfect is not a problem, you must be able to train subordinates and delegate the job. You can’t be carrying the weight all by yourself because then you would miss out on the more important vision- growing your business. Your role is simply to put your vision out as clearly and precisely as possible and then get everyone one the team to work towards it.
4. Not Assessing Your Competitions
Knowing who your competitors are will help you to create your marketing or development strategies that will take advantage of your competitor’s weaknesses. It will enable you to set your prices competitively and help you to respond to rival marketing campaigns with your own initiatives. Never assume that your business has no competitors. Even if you’re the only one selling Latok in your whole neighbourhood, you still need to compete with every other F&B that people would rather spend their money on. Few questions that you need to ask yourself when monitoring your competitors are what are the prices they charge? how do they distribute and deliver? What are the devices they employ to enhance customer loyalty?
5. Ignoring Technical Legality
You don’t have to be a walking dictionary for the laws involved in running a business, but you do need to be equipped with some legal knowledge to ensure you don’t miss out on anything that may get you in deep troubles or fines. Keep tabs for licenses and taxes and register your company. Mitigate the risks that may hinder you from success.
6. Being Complacent With Your Finances
So everyone is giving out thank you cards in their packages delivered to customers, you want to emulate that too but what you fail to do is to put that in the costing of your product as well. Avoid thinking that this is too small of a factor to be put in the costing. If it costs you money, regardless of how insignificant you might feel it is, it goes into the costing. In the long run, you would see how much profit you’re losing out on if you don’t count the little details.
We hope these tips would be some sort of help to those of you looking out to start a business. For more on the topic, watch this episode of Hello I Have Issues: Startup Business to identify the pros and cons and what to expect when you journey on the business world as a rookie.