It’s no secret that the majority of new businesses fail in the first three years. In order to avoid adding your startup to this unfortunate statistic, read on for a roundup of common pitfalls that sink new businesses before they have a chance to flourish.
Spending too much money too soon
Perhaps you are self-funding your enterprise, or maybe you are answering to investors. Either way, you have capital – but that doesn’t mean you should spend every last cent right away. While it’s true that you have to spend money to make money, don’t forget to set some cash aside to help you get through the inevitable lean months.
Making your startup your side gig
The reality is that it is almost impossible to put forth the work and effort necessary to run a successful business if you’re spending your 9-5 hours elsewhere.
Your startup enterprise needs your full attention. If you began courting investors and putting together a business plan while employed elsewhere, no problem. But once you're ready to launch your startup, you must also be willing to devote 100% of your time to it.
Not being a leader
It's your business, and all successful businesses need adequate leadership to prosper. Maybe you aren’t cut out to be a CEO, but it’s your job to find somebody who is qualified and delegate tasks to them.
However, most startups can’t afford to delegate leadership tasks out of the gate. It’ll likely have to be you to take responsibility for the success of your organization until you have the steady revenue needed to sustain an executive staff’s salary.
Not having a clear vision
Successful business owners are those who have a clear picture in their heads of where they see the business in one, five, or even 10 years. Running a business without a clear vision and business plan is like driving across the country without a map. You’ll end up lost quickly. Make sure you not only have a vision, but a documented business plan to get you there (remember, you can always revise the plan as the business evolves).
In conclusion, starting a business isn’t easy. If it was, everyone would be a successful entrepreneur. But by following the simple tips above, you could greatly increase the chances that your new business will thrive.