Starting a business can be a roller-coaster experience. Even the most seasoned entrepreneur has ups and downs when starting a new company. As a new business owner, your best strategy is to plan for mishaps while avoiding as many as possible.
There are many missteps you should watch for, but some are more common than others.
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Failure to use the Right Business Structure
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You have several choices for registering your business. Some of the most common are:
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- Corporation
- Limited liability company
- Sole proprietorship
- Partnership
- S corporation
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One of the simplest entities to set up is an LLC. It has various benefits for your company, such as flexibility, limited liability, tax advantages, and less paperwork than a corporation. If you decide an LLC is the best structure for you, check the rules in your state before moving ahead. States have different regulations regarding LLC formation. If you’d prefer to let someone else handle the upfront work, you can save on lawyer fees by using a formation service.
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Failure to Plan a Product Rollout
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A new product rollout can be a risky venture. At the same time, it may be vital to your growth. With so much at stake, it’s worth taking time to get it right. You could face a launch flop if you rush the process along or fail to plot each step.
Try using an online product roadmap template to make your product unveiling a success. This tool can help you outline your strategy and the steps to create a product roadmap. It can also organize each team member’s assignments. A template simplifies the process. You can:
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- Assign priorities to tasks
- Create themes
- Set deadlines and goals
- Understand customer pain points
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Failure to Lead
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Not everyone realizes the number of executive decisions you make as an entrepreneur — even without employees. Your company’s fate often lies solely in your hands.
Assess your weaknesses and strengths. Determine if you have some of the essential leadership abilities:
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- Emotional resilience
- Influencing behavior
- Problem-solving skills
- Self-control
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Consider taking online courses or hiring a consultant from ITB Partners specializing in leadership development.
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Starting a Business With Family and Friends (Without Thinking It Through)
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For some families and friends, going into business together works well. However, that’s not always the case.
Opening a “mom-and-pop shop” doesn’t have to be a recipe for failure. Before you do so, ask yourself a few tough questions, including:
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- Do you have compatible business values?
- Do you have clearly defined roles?
- How would it affect your relationship if your enterprise failed? According to statistics, about half of all new companies survive the first five years.
- Are you capable of overriding your emotions when you need to make impactful decisions?
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Finally, keep in mind that the market fluctuates. Along with it, your business may experience inconsistencies. These factors can change the dynamics of your working relationship as the balances of power or responsibility shift.
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Underestimating the Competition
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Even if you have a unique offering, consumers have alternative solutions. They can choose another product or just buy nothing. Tips for getting their attention include:
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- Providing a customer-centric experience by making your business about them, not your product
- Establishing your credibility by being transparent and following through on promises
- Highlighting why your product is different than others or why your customer can’t do without it
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If you can learn from your mistakes while avoiding the big ones, you can successfully get your company off the ground. Preparation combined with some training can be your best bet as you set off on your entrepreneurial adventure.
Thank you for visiting our blog.
Jim Weber – Managing Partner, ITB Partners
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