Business GrowthAre you planning a new business venture? Are you intending to start a new business? Are you in the process of floating a new company?

Unfortunately businesses are very susceptible to failure and many of the new ventures fold up within the first year. Studies have revealed that about 25 per cent of the new businesses close down within the first year of their formation, while about 50 per cent of the companies go out of business within three years of formation. Starting a business is not an easy thing at all – it goes without saying that when you start a business you need to put in a lot of effort and face a lot of challenges.

If you are going into business, you should be aware of some of the common mistakes which most entrepreneurs commit while opening a new business. We offer a few tips for you.

The first area that is extremely important is research and planning – if you do not do this right, out goes everything. Research and planning is vital to determine if your business idea is viable, workable, and if your pricing is right enough to capture the market and bring you adequate returns. Before you even take the first step you have to feel the pulse of the people – the pulse of your potential customers and find out their needs. Talk to your friends, relatives, staff, and potential customers about your plan and listen to their feedback. Positive feedback can give you confidence to take your forward. And, if you receive negative feedback, be extremely cautious. If you do not do your market research properly, you will end up selling the wrong product to the wrong person.

The second area that is extremely important for any business is financial planning. Poor financial planning without any adequate capital is sure to land you in trouble or troubles. Having adequate capital is extremely important before you start any venture, and inadequate capital is not a good indicator for any business. You need to have a definite plan before you set foot in any venture, and a word of caution – do not start any venture without a plan. It would be wise to seek professional advice before you set your plan into action.

Do not set your sights too high! Be realistic and cautious, but you should be in a position to realise your business potential. You shouldn’t make over-zealous forecasts. In the first year of business it would be prudent to go steady rather than set a fast pace. Inaccurate forecasting may lead to quick depletion of cash levels. Ensure that your hire only the basic staff during the first year. Your concentrations should be on profitability rather than anything else.

Keep an eye on the competition at all times, and no matter what happens, you should not forget this. If you forget the competition, there is a strong likelihood of your overlooking the competitors and their products. If you are not aware of any competition, you can get cues by observing the following things:

i. Watch for ads in various media – newspapers, magazines, journals, television, flyers, and pamphlets
ii. Look out for press reports and press releases
iii. Keep an eye for web releases and web ads
iv. Exhibitions and trade fairs

Take cognisance of the competition and make efforts to beat the contenders and establish yourself and your products in the market.

Have the right team in place: Take care to see that you choose the right staff. Your success and the success of your business would depend, to a large extent, on the type of people you employ. Make sure that your hire people of skill, experience, and expertise – these are the people who will take your business to the pinnacle of glory. You should, therefore, make sure that the people you employ are committed and sincere. Hiring the wrong people would have its own repercussions. If you are the boss, it is not possible to do everything by yourself, and so delegate – delegating the right task to the right person is important and essential.

Entrepreneurial Learning

The author talks about start-up businesses and ventures and the difficulties that one encounters while doing so. It is a well known fact that first-time business owners do have to face a lot of hardships and problems on their journey to turn their dream into reality. If you are going to start a business, you should be aware of some of the common mistakes which entrepreneurs commit while doing so. He offers few tips on what mistakes not to commit while opening new ventures.

Image courtesy:

Leave a Comment

Your email address will not be published.

You may also like

Growing a Business

Want Great Guidance ? Find yourself a Super Mentor


They are the gods of small businesses, those inspired individuals who have achieved the highest levels of success. They can be the shining beacons who light up the path of running your business with their vision, wisdom and wealth of resources and contacts. They are The Mentors.

If you are fired with the passion to take your business to great heights, the best thing to do is find yourself a super mentor. Here are some tips to help in your quest

Pinpoint your Need

Sit down and focus your thoughts on your business growth strategy. Which area of the business needs a lift. Is is staffing, is it the finances, is it the production, is it the your lack of customers or is it the business as a whole that needs a makeover. Once you’ve zoomed in on the sore spot, this is where you need…

Read More
Growing a Business

Dreaming Big? You can Move Mountains with these Business Productivty Tips


You may be full of admiration for some people who seem to manage themselves and their work so usefully and efficiently. They seem to fit in so much productive work into the same number of hours which everyone has.. Let’s look what makes them tick and take a few tips.

Learn to identify your most productive hours

Its true, most productive people know which time of the day they can be most creative and efficient. They identify and allot these hours for the best part of their work. This way they are able to give their 100% awareness to the job and business productivity.

Early to rise- A winning habit

Waking up early is a personal habit that has all the plusses on its side. You need not necessarily go to work that early. It’s a habit that gives you more time for personal care, like mediation, exercise, walking,…

Read More
Growing a Business

Leadership Qualities that can make you an Icon


You may have reached the leadership position through sheer dedication to performance and a do or die attitude . Now that you are at the top, your viewpoint needs to change. You have to now be a role model, one whom others will look up to and follow. Here are some tips that can shape your leadership and management skills

Be Competent: Employees will look up to a leader who has good industry knowledge and management skills. If you do not possess these skills you should surround yourself with knowledgeable people who can offer good counsel. Competence is a trait all employees will admire.

Be Trustworthy: No one will look up to a person they cannot trust. Your employees will want to rely on you and count on you. In difficult situations, leaders are expected to apprise their employees of the situations and find solutions on how to address…

Read More
Raising Money

Are You offering Your Services Using the Right Pricing Strategies?


In these times of fierce competition, business people , mostly those that offer services and belong to the service based industry, are finding it a challenge to implement the right pricing strategies. It is virtually a struggle to set the right business price that will retain and attract the customers, and not drive them away. Follow these tips, the crucial dos and don’t s and you may be in a much better position to offer your services at the best price.

Maintain your Business identity and Dignity

If you are offering a unique or special product or service, don’t underrate it just because you want to build a better relationship with the customer. This will just cheapen your offering as another run of the mill. If its something special you are offering the customer, then communicate this fact to the client and get the equation right with the most…

Read More
Raising Money

What is a Fair Wage? How Do you Assess Fair Wage?


How do you figure out a fair wage?

This is a very common question for startups and small businesses. They can’t seem to decide or understand how to set wages and manage reputations at a time. They are determined to pay well but they also have to think about encouraging their employees to stay with them for a long time. This is why there is a need to think strategically.

Listed below are a few expert tips to help you decide:

Don’t Focus Only on Money

Money should never be the main focus for you or for your employees. You should decide on the wages in such a way that your employees are tied to your business. When your business does well they should be able to taste that success and vice versa.

Also, think about additional perks such as exclusive benefits and time off. Many employees value this more than the overall…

Read More
Raising Money

Tips to Winning Hard Negotiations With Ease


While some negotiations are easy, others are quite hard to win. If you stumble you will lose.

Whether it is a potential client or an investor, negotiations can be very tough and frustrating. The problem is that the moment you let your frustration overwhelm you, you will lose the deal and you will give in to whatever is being offered to you. In order to avoid that, here are tips to overcome tough times and to win even the hard negotiations:


Know your opponent as well as possible. This is the rule no matter what you do. You should understand your opponent to the T. Who the person is, what his culture is, what he thinks, what he stands for, how is his network, etc. are the questions you should ask yourself and answer through research before meeting up for the negotiation. Understanding the opponent will give you a great advantage.


Read More