The difficulties of getting a new business off the ground are well known. Only a fraction of new entrepreneurs survive their first year, and those that do have often lost a lot of time and money while learning the ins and outs. Mistakes are unavoidable, but not all errors are created equal and some may be more damaging to a new business than others. In order to keep a new startup business afloat, there are some important hazards to avoid.
Not Keeping the IRS Happy
You do not need to be a businessperson to know the monotonous drag of taxes. Like it or not, though, it is an inescapable part of the job. In order to stay out of trouble with the taxman, exercise good judgement in completing your taxes honestly, accurately and on time.
Often, business owners find it worthwhile to enlist a tax service for the job, especially while they are still learning the ropes and have more pressing concerns. If there isn’t room in the budget to hire a professional, online services are the next best thing.
Not Focusing on a Specific Market
It may make more sense initially to cast a wide net in marketing. More people seeing the marketing equates to more customers, right? Not necessarily.
By going for an expansive audience, you can make your business or product concept much too broad to capture people’s attention. Pinpointing your market and targeting it specifically is a much more successful strategy for a startup business because you gain a core following that will stay loyal.
Not Staying Humble (at Least at First)
One of the quickest ways to kill a new business is trying to grow too fast. This is an understandable instinct; the same big thinking that inspired you to start the business transfers over to your goals for growing the business.
Successful businesses that are conservative in their growth give themselves time to grow a solid core in everything from market to structure and capital. Think of it this way: If you were building a home, you would not rush through the foundation to get to building the house, would you?
Thinking about all the things that can go wrong with your new startup business can sometimes be overwhelming, but it need not be. Instead, it is a matter of being aware of the hazards in the way and carrying on with the same gusto that gave you the idea to embark on your startup in the first place. So get out there!