Starting a company is a challenge, but there are many areas you can focus on to ensure that your company stays afloat after its first year and continues to be successful. We asked several small business owners and executives to share 20 mistakes that new business owners should avoid when starting their businesses. According to the Bureau of Labor Statistics, more than 18% of new businesses fail during their first two years of operation and more than 55% of all businesses do not survive after the fifth year. So how do you successfully launch and run your startup? We contacted hundreds of small business owners, growth strategists, financial advisors, legal experts, and business consultants to compile the 20 most serious mistakes that startups make, so you can avoid them when starting your own business.
The COVID-19 pandemic has posed an additional challenge for new business owners. Safety measures, such as masks, hand sanitizer and plexiglass separators for staff and customers, can be costly. In addition, at the beginning of the pandemic, lockdowns resulted in reduced spending, which proved to be a challenge for small business owners. To avoid these problems, be sure to prepare your new company's financial projections, especially for the first 12 months.
This can also help you get funding and investment. Many small business owners avoid planning at all costs. The old adage, “Not planning is planning to fail,” is true. Without a well-thought-out plan to set up, manage and promote your company, you'll waste a lot of time.
Marketing is about future sales. You sow the seed today to reap the benefits tomorrow. If you want a successful long-term business that you can leave to your children, don't neglect marketing. Every month, dedicate at least 20% of your time to marketing activities.
Keeping up with your company's innovations and new business strategies is crucial to long-term success. Creating a complete business plan, being strategic when hiring and being financially responsible are some of the most important steps to starting a successful company. We contacted hundreds of small business owners, growth strategists, financial advisors, legal experts, and business consultants to compile the 20 most important mistakes that startups make, so you can avoid them when starting your own business. While we continue to grapple with the financial effects of the pandemic, there are strategies that business owners can adopt to protect their businesses in the face of the recession.