10 Tips to avoid mistakes by Every entrepreneur when starting a new business!

???According to data from the United States Bureau of Labor Statistics, 30% of new firms fail during the first two years of operation, and nearly half of all businesses fail by the fifth year. So, how do you establish and operate a successful business?

?Here are 10 tips that will help you to avoid mistakes in starting a new business.

?1.??Don't be afraid to make mistakes: Fear of failing is the biggest error you can make. Failure is necessary for success, and facing your fears is beneficial to your future business. The key to tremendous success is how you bounce back after failure and learn from your mistakes.

?2.??Create a business strategy: Too many businesses fail because they don't have a basic strategy in place, and if you don't plan, you're intending to fail. Even if it's only one page, a business plan should be drawn up for a startup. It should include information such as how much it costs to run the business, how much they expect to sell, who would buy their product, and why.

?3.??Know your market and target audience: Taking the time to understand the market or clients for whom you're building is a common startup mistake. Writing code may appear to be easier than talking to customers to technical founders, but there's no way to know if you're on the right track unless you're obtaining feedback from current or potential customers on a regular basis. It's critical to understand that creating a great product does not always equate to a successful business. Many businesses find themselves concentrating on a market that is simply too tiny to support a large enterprise.

?4.??Make sure your legal structure and business registration are in order: The most common mistakes made by entrepreneurs are failing to register their firm, choosing the wrong business entity, and failing to safeguard their intellectual property. These three areas are critical for a business to get off to a good start, and if not done correctly, can cost time and money to fix.

?5.??Make sure you're not partnering with the wrong investors: Entrepreneurs should be aware that their investors are more than simply financial backers, which is vital information to have when beginning a business. The first group of investors in a firm will make or break it. These people believe in the company's potential even though they haven't seen a proof of concept. After businesses have received initial money, they will communicate with investors who are interested in the company's growth and long-term viability.

?6.??Don't undervalue the importance of capital: Most entrepreneurs believe they can accomplish more with less. They overlook to account for unknowns, obstacles, or delays along the route in order to limit equity dilution. Leaders of startups are prone to planning for the best-case scenario, yet this nearly never occurs. This mindset can be ascribed to leaders' optimism and the fact that they have drunk their own Kool-Aid. When it comes to capital, though, optimism has its place; it frequently leads to needing to return to the well for a less-than-ideal raise.

?7.??Save your money & use it wisely: For startups with limited access to financing, handling money incorrectly and being careless with cash flow is a death sentence. I've made the error of recruiting too many people rather than the proper individuals and spent money to fill the top of the funnel without a well-defined mechanism in place to manage the bottom of the funnel. Putting good money to terrible use and attempting to be all things to all people rather than being niche-focused is a sure-fire way to waste time and money, which are the lifeblood of every startup.

?8.??Don't undervalue the worth of your product or service: Don't overprice, but don't underprice only to win market share. If you're good, charge accordingly! Many businesses begin with the best of intentions, giving out free goods or services in the name of charity, community, or notoriety. You don't want to be known as a source of freebies, so proceed with caution.

?9.??Don't expand too quickly: It's tempting to think that if you're having success, you'll keep growing, and the easiest approach to capitalize on that is to simply copy and paste your winning recipe. However, if you... grow your firm too quickly, it might be disastrous. You might discover that your moment of expansion was just transitory, and you're left with a bunch of new employees but no job and no money to pay them. That's why it's crucial to expand slowly and steadily, rather than acting on a whim based on positive results.

?10.?Don't go live too soon: It just means don’t launch your new product or service too quickly. Make a better plan of launching the product & then only go live about that product or service. One of the most common blunders made by businesses is launching before they are ready. The saying "done is better than perfect" is correct; but, the "done" must be capable of handling new clients. Once you've gone public and started collecting clients, make sure your systems and processes, such as payment terms and processes, contracts, and communications, are in place while still allowing you to stick to your marketing strategy. Before you start taking on clients, you need to make sure your back-end processes are in order; if they aren't, the cracks will emerge and you'll appear unprofessional.

? A successful startup is not formed by a single person; surround yourself with subject matter experts and mentors from whom you can learn and rely on. Instead of being terrified of failing, learn from your mistakes and adjust your company strategy as needed. Test new ideas and get feedback so you can improve your product to better suit the demands of your customers.

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