3 Biggest Start-Up Mistakes That Small Businesses Make

Today’s down economy has evoked thousands of corporate executives and others to seek another solution to sweating out lay-off’s and corporate cut-backs. Starting a business is becoming a more appealing career choice for many Americans today. It can be the best decision you ever made, but make sure you first take the time to learn the traps and pitfalls that could put you in a worse financial situation than being unemployed. Here are 3 common mistakes that many start up businesses have made:

Mistake #1: Business owners did not complete a thorough financial profit and loss forecast. Often times entrepreneurs get themselves so excited about the endless possibilities and income potential with their new business opportunity that they neglect to address accurately all of the expenses that it requires to kick-start a new business as well as the funding needed to grow and maintain that business. In laymen terms: don't put the cart before the horse. Business owners typcially expect their margins to be a lot wider than what those margins end up being in reality. Proper planning and research needs to be done to account for all of the actual expenses. It pays to do an accurate feasiblity study before launching a new business.

Mistake #2: Business owners did not have a clear, consistent message.
As the saying goes, "it's a jungle out there". Don't let consumers get lost with your branding or lack thereof. Your product or service is competing with a large number of other businesses who sell the same things. Don't assume that throwing up an Open for Business sign will be enough to bring in the number of clients needed to meet your overhead. Have a specific market niche, branding or platform and communicate consistently to those choices.

Mistake #3: Business startup's cut corners on the wrong expense categories. Knowing which categories are the important expenses to invest in all depends on what your platform is, your branding and your market niche. If your branding is being the lowest price and your market niche are the bargain shoppers, ages 50-70 than you don't need to spend a high percentage of your marketing on high end brochures and websites. However, if your platform is offering the highest quality professional service in your industry, than the number one place to invest your capital would be your marketing materials and staff.

Proverbs 1:5 says that a smart man learns from his own mistakes, but a truly wise man learns from the mistakes of others.


=====================================================================

Yoon Cannon is a systemic business growth coach, consultant and speaker based in Philadelphia, Pa. She specializes in helping entrepreneurs take their companies beyond the Million Dollar milestones through branding, sales & marketing, hiring and training. For more free articles and podcasts visit www.paramountbusinesscoach.com or call (215) 292-4947 EST.