7 mistakes that could hurt your startup business

    Don't Miss Out

    Sign up for the weekly newsletter. Introducing you to the best insight of accounting, bookkeeping, startup and business news

    Running a startup business is challenging, and there are numerous areas you can concentrate on to ensure that your company stays afloat beyond its first year and continues to achieve excellence.

    For new entrepreneurs, it is a challenging task to avoid startup mistakes. However, spotting startup mistakes early on can give you a competitive advantage and increase your chances of success.

    Even if avoiding mistakes is not always possible, being prepared usually pays off. Here are a few popular startup business mistakes you can avoid to increase your chances of succeeding.

    Table of contents

    Need Startup Accountant

    Work with a London-based accountant for tax, accounting, payroll, & EIS/ SEIS needs.

    Have a question? Call us on
    0203 900 3500
    Monday to Friday 9am – 5pm

    Seven common business mistakes  owners make

    • No backup plans

    Most startup entrepreneurs work hard on the entire process and document it on a written paper. And they acknowledge it as a sure-fire plan.

    However, unexpected problems can occur, and the business might face severe losses. Being optimistic surely helps, but companies should plan for uncertain events.

    Several startup business owners walk into their new workplaces with complete confidence to achieve success.

    Numerous startup owners consider they have explored everything regarding business and cannot fail in any way.

    Here, things can get wrong; this is where a backup plan comes into action.

    Having a backup plan is vital to your success. By putting more plans into your vault, you’ll outperform the slow learners, teach yourself how to respond fast to any situation, and continue developing a solid work ethic.

    • Thinking you have no direct competitors.

    The excitement about an innovative item or company can often lead young entrepreneurs to think they have no real competitors or that their item is so head-and-shoulders above those of their competitors that they’re in a category of their own.

    In reality, it’s pretty rare to have no major rivals. Unless you’ve created an entirely new product, there will always be a competitor in your niche with a larger market share.

    Do your thorough research to discover these businesses and how you can differentiate your company from them.

    • Trying to do everything by yourself

    Many entrepreneurs think they should do everything themselves because they are the vision behind their business.

    Many startup owners fail to understand that starting a business is not a single-player effort. It needs a team of people you trust who believe in the business’s vision to help you grow.

    Working as part of a team also involves having leadership skills, which many new business owners lack. They aren’t confident enough or don’t have years of experience to lead a team effectively.

    They also tend to be micromanagers who like things done in a certain way. This might ruin the chemistry and collaboration of a team.

    Founders must find a balance between focusing on the big ideas and having the ability to manage groups of people to complete the smaller everyday task.

      Your monthly Startup advice by 123Financials

      Enoll for Our free Update
      • Accounting and Bookkeeping and Tax Guide

      • Startup news and Updates

      • Launching too late or too early

      Most startups spend months (or years in some situations) in stealth mode, hidden away from the world, and never releasing their product as competition and uncertainty spoil the show.

      However, many others launch a poor early version of their product in a typical lean startup style.

      Startups should make sure their products have a viable level of design and usability; otherwise, they might not obtain the results they are hoping for.

      Finding the ideal balance between starting early and producing the ideal product is no easy task, but it decides the fate of the startup business.

      After you release the product, remember that your initial release is only the start, not the end. Take lessons from real-world use, improve and iterate as you go, but don’t overload it with features.

      • Building something nobody wants

      The ideal product is simple, engaging, and aligned with the business strategy.

      You’ll often come across apps or websites that look great and appear on the surface to have a great experience, but as you dive deep and use them more, there’s no obvious value to the visitor.

      Either the issue they’re trying to solve isn’t a big enough issue for many individuals, or the proposed solution doesn’t strike the right note to gain substantial traction.

      First, ensure you build the right item for your audience before refining the experience.

      Also, before you create your product, have a discovery phase where you discover the market, test your riskiest hypotheses about your audience and explore any new and possibly more lucrative opportunities.

      • Lack of focus on customers

      The most profitable companies are those that are fully aware of who their clients are.

      If you clearly understand your target market, you can estimate their size and involve them in developing your products by taking their feedback and perspective.

      This will ensure that your offerings are based on customers’ opinions who will pay good money for them.

      If you are unsure who your customer is and can’t define that individual in one sentence, your company will have a hard time.

      Your consumers can be the ones to keep you in business, but they can also be the ones to drive you out of it, so value them properly.

      Need Startup Accountant

      Work with a London-based accountant for tax, accounting, payroll, & EIS/ SEIS needs.

      Have a question? Call us on
      0203 900 3500
      Monday to Friday 9am – 5pm
      • Don’t give up too early

      Entrepreneurship is a marathon, not a sprint. It takes perseverance, self-confidence, creativity, patience, and persistence because the process is lengthy and has many ups and downs.

      Some businesses achieve success immediately, while others take longer to get traction.

      If you give up too quickly, you risk missing the chance to be a successful entrepreneur.

      Make sure to give a business the time it needs to succeed and make profits.

      Final thoughts

      Starting your own business can be a lot of hard work, but it can also be advantageous. Despite all the warnings and lessons, mistakes are unavoidable.

      Hopefully, the business startup mistakes mentioned above can be avoided by being a savvy and experienced first-time founder.

      You shouldn’t be afraid of failure; instead, learn from your mistakes and pivot your business needs as required. Test innovative concepts and collect feedback so you can tweak your items to meet customer demands.

        Learn more about Accounting , Bookkeeping and Tax

        Subscribe to get our monthly dose of accounting, bookkeeping, tax and startup knowledge, inspiration and news.