10 Mistakes Start-Up Companies Make

Owning a business and working for oneself seems to have a lot of perks, right? Why wouldn’t everyone want a flexible schedule, no boss, freedom to make their own decisions, etc?

It’s not as easy as it seems. A lot of people don’t make it through their first year of business with their start up company. Here are 10 common mistakes people make when starting their own business that lead to failure.

1.Not doing your homework: Before getting into an industry make sure you know the in’s and out’s of it. Researching other businesses in the industry, knowing what the trends are, and knowing your competitors are the first steps in the right direction.

2. Not having a marketing plan or branding: Every business, like a person needs an identity, a way to set itself apart from other similar companies. Invest the time and money in defining a brand and a strategic marketing plan.

3. Managing the Finances: Keep track of where the money goes. If it makes sense, hire an accountant. You’ll appreciate the investment when tax season rolls around.

4. Lack of resources: It costs money to make money. Getting resources from private investors or public ones is a risk, but a necessity at times. Securing the financial backing before taking the leap might be a good idea if your own savings account can keep you and your family afloat. As long as there’s a solid foundation for success then it is worth the risk taken.

5. No web presence: A company website is a must have, in this age of business. It’s the #1 marketing tool. If you don’t have one your business runs the chance of being considered un-credible. Invest the capital to get yourself a well designed and easily manageable website.

6. Lack of patience: Keep in mind; the majority of the start-ups out there don’t have overnight success. Give your business time to build. Make sure you’re developing professional relationships and keeping your website up to date.

7. One person does everything: This happens in small businesses all the time. One person tries to wear too many hats in an effort to save money. Not a good idea. Outsourcing can be a good remedy for this and it can be a lot cheaper than hiring. Understanding and realizing where you need help is an important factor to begin.

8. Making rush decisions: Not taking the time to think through decisions carefully and weighing the options can be harmful to your business and expensive. Don’t be rattled by the individual that’s breathing down your back to meet a deadline. Take your time, processes the info, gather the facts and make sure you’re making the right decision.

9. Not having experience in the Industry: If you haven’t worked in the industry you’re trying to get into I suggest you do. Even if it’s something that gets your feet wet for 6 months to a year, it could be worth it in the long run. If this isn’t an option, hire a consultant who does have industry experience. You’ll thank yourself for it.

10. Not properly legalizing: Figure out which form of business will suit your company the best. Are you an LLC, S-Corp, Partnership or Sole Proprietorship? Each has its differences and benefits depending on the situation. This website offers good information. http://www.legalzoom.com/llc-guide/llc-sole-proprietor-partnership-...

For those who have started your own companies, what tips do you have for us? What are some good decisions that have helped you? What are some bad decisions that if you could go back and fix them you would?