Top 3 Mistakes People Make When Starting a New Business

Starting a new business can be an exciting time—venturing out into new territory and putting that new idea into practice. It can also be a time with a lot of missteps. There are things that can go right and things that can go wrong. Avoid these three mistakes:

“I just signed the lease on my new office space! I’m so excited to start my business.”

Umm, if you’re just starting out, maybe you don’t need to jump immediately into an office space. Some people assume having a physical location gives them credibility, but it’s not a requirement. More businesses are operating with remote teams and there’s no walk of shame in working from your living room. And frankly, if you’re not good at what you do, a fancy street address isn’t going to bring in business.

You also don’t need a physical office to connect with the team you may build. Instead, think about using online tools to stay connected with remote workers. You can share documents, get an online CRM, and videoconference as needed.

Bottom line: An office doesn’t make you more credible and adds overhead you don’t need when starting out.

Let’s get real. Your customers are not everyone. “Well, our product is for new moms, so ALL new moms are our audience.” Nope. Wrong. Not all new moms will be your audience. Do you sell $50 strollers or $500 strollers? One clear difference in that scenario is moms who buy high-end items versus budget items. Do you sell “really cute snowsuits” for kids? Moms in Florida probably don’t care. So that’s a regional difference.

In marketing, there’s a term called “personas” which is about the demographics of your users, but also their individual needs and wants. Identify one customer to help you think this way. If we think of the moms example, she may be a new mother to one child, works in a traditional 9-to-5 job, has family support, lives somewhere warm, is over 40, etc. See where I’m going with this? And yes, it’s narrow, but it can help you define exactly who your customers are.

Here’s another example and you can probably see through this one pretty quickly. “We target people who are seeking new jobs” Wow. That’s broad. “We help new liberal arts graduates find entry-level positions.” That’s okay, but it can still be better. “We work with white collar executives over 50 years old, who want to change gears after working in the same profession for 20 years.” There’s work to be done on all of these, but you can at least see some ways to start thinking beyond “people who are seeking new jobs.”

Ugh. Trust me, that gets exhausting. Quickly. If your “plan” is to wing it, you’ll find yourself having to customize everything you do. You’ll explain every single product or service one-at-a time based on what you’re asked on any given day. Every single proposal will be different because you provide each one in response to whatever people want. Don’t do this. With a new idea, there’s clearly room for learning, and it’s very likely that you’ll pivot along the way.

Instead start with some systems in place. “Services/Products” and “Costs” are two ways to start:

Services/Products.  Let’s start with what you’re offering. Is it clear what products or services you are offering? Is there a menu of what you provide for people to review? If you can put your offerings into writing, people can prequalify themselves. Deciding what to offer will also help you to determine what not to offer. With a new business, it can be tempting to say yes and offer everything because you need to make a buck. Define your yes and no to save time later.

Costs.  How much does it cost for you to provide your offering, both in terms of time, money, and energy? If something is pretty easy for you to churn out, but it sucks the life out of you every time you do it, that’s an energy cost you need to consider. If a service generally takes 10 hours of your schedule and it’s only a $200 project, then it’s probably not a good use of your time. Determine the costs for whatever you offer so you are not constantly providing custom quotes

These mistakes are not intended to discourage you. Instead, they should empower you as you start your new business. Armed with what not to do can lead to success faster and make the whole process more enjoyable.

Post by : Tina Arnoldi

Tina Arnoldi is the founder of 360 Internet Strategy and a resident of Charleston, SC, since the late 1990s. She is qualified in both Google Analytics and Google AdWords, and part of the Google Partners program. She helps clients develop and manage their Internet strategies.

Company: 360 Internet Strategy
Website: 360internetstrategy.com
Connect with me on Twitter and LinkedIn.

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