Stop These Startup Mistakes in Their Tracks

Nearly 97,000 businesses are started in Canada each year while upwards of 91,000 are closed forever. Some shut down because of lack of dedication, personal issues, or relocations. Others because of simple missteps that created serious problems for ownership and management. Here are seven mistakes that you don’t have to make.

Not seeking exposure.

Self-promotion is an intimidating prospect for many small business owners. But, you have to have exposure if you want your business to succeed, and that requires putting yourself out there. This means traditional marketing, but also PR practices, such as guest posting and even targeting small, local publications, something that Darcy Allan PR suggests is a great way for businesses to garner attention.

Taking on too much.

Another major problem among entrepreneurs is “do-it-yourself syndrome.” This is essentially the act of trying to take on every aspect of your business on your own. Don’t do it, and don’t count out the benefits of a great assistant. If you don’t have time to search for employees on your own, look for a recruitment agency that can find someone based on your needs, and whether or not you require a long-term commitment or simply want an independent contractor for a short-term project. Whether you choose to use a recruiting agency or not, clearly outline the requirements of the job, including how much experience is required and, when it’s time to talk money, the salary you expect to pay.

Failure to write out a business plan.

Even if you plan to start small, you should have a basic business plan in place. GrowThink asserts that this has many benefits, including helping you understand your customers and competition and identifying business milestones.

Not protecting your assets.

When you’re a small business owner, if you do not structure your business correctly, your personal assets may be considered part of your business. To sidestep this, consider forming a corporation, which in Canada establishes legal distance between the corporation’s shareholders (even if you are the sole shareholder) and their personal assets.

Skipping market research.

Maybe you started your business because you were simply better at something than other people. That’s great, and it gives you a solid foundation. But that does not mean that someone else can’t come along and usurp your prime position. If you want to keep that from happening, do your research. Marketing research can help you identify business opportunities and take fewer risks. It will further give you the information you need to create promotional materials that your customers want and need. You’ll know where to advertise and, perhaps most importantly, you will outshine and outsell your competitors.

Having too many products or services.

When you’re trying to target everyone, you have to keep a lot of inventory or have knowledge in many different areas. While this might work for large companies (we’re looking at you, Amazon), it’s not the best for small businesses. It’s almost always beneficial to have a niche, which means you specialize in a certain product or service or target a very specific demographic.

Pricing for volume alone.

It is easy to get lost in the idea that selling more means making more, even if each transaction only provides a small profit. While this can certainly work in some instances, you may find that you have more success selling higher-priced items that are better quality or come with better service than churning out cookie-cutter units that might only last a short while. Learn how to balance your pricing with quality so that you aren’t overworking yourself producing more volume than you can handle at the expense of customer service or product quality.

Will your startup be a success? Only you can determine that. By avoiding common beginner mistakes, you put yourself in a position to thrive on while 90,000 other businesses decline.

Darcy Cudmore has years of experience helping his clients get the press coverage they deserve. Contact Darcy Allan PR today for more information or to get started.