7 mistakes you will make when

starting a business

by Paul Kaergerphoto by http://deathtothestockphoto.com/

I started working for myself in 2012. Since then I have provided business advice to a number of start-up businesses as well as writing and delivering a course on how to start your own business.

Over the past three years, I have spotted a number of common problems that affect start-up businesses.

Here are my top 7 mistakes …

You will have no idea who your customer is. Make sure you know your customer. So many times, I talk to start-ups and they say that anyone can buy their stuff. Yes, anyone CAN buy your stuff, but the idea of effective marketing is to identify the people who are most likely to buy your stuff.

Marketing is about selling your stuff to those people who are most likely to buy. When your ideal clients buy your stuff, that is good business. When just anyone buys your stuff, that is LUCK.

1

You will spend money on things you don’t need. Don’t buy business cards, don’t buy a website, don’t buy advertising …. until you KNOW it will help you reach your ideal customer.

Be stingy, a penny pincher, a tight wad.

Don’t buy a brand new computer, get a second hand one. Borrow skills from friends. Remember, every penny you spend on your business, you will have to earn back (and more) through selling your stuff.

2

You will fail to keep good records. Remember that being in business is not just about selling and doing - it is also about doing the boring, dull admin stuff.

So many business owners get themselves into a mess because they don’t take the time to keep on top of the admin. Don’t be the one who misses the tax deadline!

Once a day, once a week, once a month, set some time aside to go through your receipts, chase your invoices and balance the books.

3

You will try to do this alone. Running your own business is a lonely place, there will be highs and plenty of lows.

There will be self-doubt. There will be loss of motivation. There will be frustrations.

Make sure you have a good support group; family, friends, professionals you trust. Use them to bounce ideas off, to get advice, to get support. And, before you start, make sure your partner is fully behind you … that is invaluable.

4

You will not follow up. You will be given leads or you will meet interesting people at networking events or exhibitions … and then nothing.

Don’t be shy … or rude, for that matter. Get on the phone, send them an e-mail, just make sure you follow up every new contact and every new lead.

If you spend time and money at networking or at events and then don’t follow up, it was all a waste of your time and money.

5

You will try to be perfect. You will waste so much time trying to get your service or product just perfect.

Less perfection, more action.

Try stuff out, experiment, develop your product through customer feedback rather than ivory tower thinking. The true test of any product is the customer, so the more time you spend listening to customer views and the less time you spend prevaricating is good!

6

You WILL under-price. You will believe that the only way to win business is to be cheaper than the rest.

Most people go into business because they have a great idea or have great skills they can offer. So find a way to demonstrate the value of what you offer.

If you do not believe that you offer something special, you should not be going into business.

Be brilliant … and get paid a fair amount for being brilliant!

7

Running your own business is hard work. It is frustrating and maddening. But it has been the best decision of my working life.

I love the fact that I am being challenged every day. I love the fact that I am always having to learn. I love the fact that I am not doing what I thought I would when I started out.

As Steve Jobs said:

“Stay Hungry, Stay Foolish”

Try stuff out, learn new things and HAVE FUN.

www.pkms.co.uk

paul.kaerger@pkms.co.uk

@paul_pkms

07595 702878

Thank You