Starting a new business is an exciting and sometimes nerve-wracking endeavor during which you will wear many hats.
Obviously, you want to make the business successful and profitable. To make the task easier, here are five common mistakes to avoid.
1. Not developing a marketing plan
In your eagerness to get the company up and running, you may depend on family and friends as your first customers. However, they cannot keep the business afloat forever. Make sure you use all the marketing tools available. Build an app-friendly website. Create a social media presence. Start an email marketing campaign and remember to network.
2. Underpricing products or services
Underpricing is a financial mistake for new businesses. Keep the pricing of similar products or services in mind when you calculate how much it costs you to provide your own.
3. Avoiding written agreements
Do not depend on casual relationships with suppliers or business partners. Proper record-keeping is important from the very beginning. Written agreements from contracts, to invoices, to written receipts for purchases, will make this job easier.
4. Neglecting to register IP
Your intellectual property (IP) includes everything from your company name and logo to a client list or set of photos. Protect your IP by filing for copyrights and trademarks where appropriate.
5. Failing to plan for the future
Do not ignore the essential step of developing a long-term plan. This means determining your goals for different time periods, such as a year from now or five years from now. Your attorney and accountant can offer guidance, but your objectives might include future products, staff expansion or company finances down the line. Planning for the future of your business will help you meet the many responsibilities required to get it off the ground in the first place.