Launching a small business can be an exciting time. So it’s probably not surprising that the United States Small Business Association (SBA) reported that small businesses (with 500 or fewer employees) make up 99.9% of all U.S. businesses. That’s right!
You’ve likely been developing your business plan and perfecting your product or service for months or even years. Still, many entrepreneurs have discovered that starting a business is no easy feat.
You have to deal with many components and potential pitfalls. To help you avoid some common mistakes, here are some things to watch out for when launching a small local business.
Failing to Do Enough Market Research
Before launching your small business, it’s crucial to understand your industry and what the competition looks like.
You need to know who your target customer is, what needs and wants they have, and what you can do to fill those needs better than your competition. This step is critical to the success of any small business
Not doing enough market research for a new business can lead to big problems down the road.
Not Having a Solid Business Plan
Your business plan is your roadmap to success. It will outline any new small business including for people looking for the best massage therapists near me Eagle Mountain Utah.
The business plan should include your business goals, strategies, and how you plan on achieving them.
Here are some tips for making a business plan:
Be realistic: Be honest with yourself about the potential for your business. Don’t set unrealistic goals that you’re unlikely to reach.
Do your homework: To create realistic goals, you must understand your industry and what it takes to be successful. In other words, do market research and understand your competition.
Not Having Enough Start-up Capital
The average cost of registering new businesses is about $145. That’s the good news. Unfortunately, the various costs of launching a new company can include:
- Inventory
- Equipment
- Marketing and advertising
- Legal fees
- Accounting and bookkeeping services
- Payroll processing
- Permits and licenses
These various costs can quickly add up lightning-fast. So it’s important to secure a solid financial foundation before launching your business.
You have a few options for securing financial assistance for your small business
Small Business Administration (SBA) Loans: The SBA offers a variety of different loans for small businesses, including startup loans
Grants: Several grants are available specifically for small businesses. A quick online search will provide numerous results.
Crowdfunding: This process involves soliciting donations from friends, family, and even strangers to raise money for your business
Personal loans: If you have good credit, you can secure a personal loan from a bank or credit union to help fund your business.
All of these options have benefits and drawbacks, so it’s crucial to do your research and discover the best option for your brand-new business.
Not Building the Right Team
One of the most important aspects of launching a small business is putting together the right team. Just like a sports team, not having the right blend of people can prevent your startup from achieving true success.
You need people who are passionate about your product or service. They should also have the skillsets to help you achieve your goals
When assembling your team, make sure you’re realistic about what you can afford. Don’t try to hire all the top experts in your field immediately.
Start by identifying what specific areas your business needs help in. Next, gradually bring on new team members that your budget allows
When interviewing potential employees, ask questions that will help you gauge their fit with your company culture and goals.
Here are some key questions to ask:
- What are some of your favorite products or services?
- What are your hobbies or interests?
- What are the biggest challenges facing our industry?
- How do you handle stress and challenges?
- What is a personal goal you have this year?
The answers to these questions can give you a rough idea of whether or not someone is a good fit for your business.
Not Defining Your Target Market
Not having a well-defined target market can cause a world of problems. Here’s why. It’s not enough to have a general idea of who your target market is.
You need to be specific about who your ideal customer is so that you can develop messaging and marketing campaigns that are perfect for your niche market. Here are some facts to think about your target market:
- Age
- Gender
- Income bracket
- Interests
The more specific this customer profile is the more likely you’ll have success targeting individuals most likely to buy your offerings.
Final Thoughts
Starting a small business is no easy feat but by avoiding these common mistakes, you’ll be more likely to create a recipe for success–business success, that is!
