We have previously written that the majority of small businesses fail before they have a chance to become successful and sustainable. There are times when failure can’t be predicted and is out of the business owner’s control.
But in many instances, failure can be attributed to certain mistakes and unwise choices made early on in the process. By recognizing these mistakes ahead of time, you may be able to avoid them in your pursuit of entrepreneurship.
According to a recent guest post on a popular business blog, one of the biggest mistakes entrepreneurs make is “winging it.” A great idea for a business can take you far, but it is not enough for success. Instead, you need to flesh out that idea and develop the details of how you can make it marketable and profitable. As the old adage says, failing to plan is planning to fail.
Speaking of details and specifics, you should take the time to truly understand who your target customers are. Advertising is expensive, and blanket advertising usually brings a poor return on your investment. Truly understanding which customers you are trying to appeal to will help you craft your message, choose the appropriate advertising medium and tailor your products/services.
Finally, it may be a mistake to assume that you need to invest in commercial real estate in order to be considered legitimate. The decision will depend on what kinds of products or services you intend to offer. Most restaurants cannot help but have a physical location where customers come to eat. But what about stores? Do you need a brick-and-mortar location, or could you be more successful in online sales? If your business is service based, do you need an office? Can you work out of your home instead, or simply meet clients in public places?
Starting a business is hard work, and there will likely need to be some trial and error. But in order to give yourself the best chance of success, it helps to have a plan in place and to seek advice when needed. In that regard, working with an experienced business law attorney may be one of the best investments you can make.