Launching a business requires good awareness on certain aspects otherwise it may turn out as a big failure within few years. Some people enter into business with a wrong mind-set that doing business is easy if they have enough funds available. By any chance if their business venture fails, either they blame luck or the existing market for their failure. Very few business owners become conscious about their mistakes and try to avoid them from happening in future.
It is a very common that there is no guarantee for success in business for every enterprenuer. The pressure to think about various aspects and decisions to make will be more at the beginning especially for start-ups. Even a small mistake can impact negatively on their business hurting their potential for success. There is no such thing like a protective plan to avoid the risks, but by having a good awareness on certain issues they can surely avoid negative impacts on their business.
Imitating Big Companies
It is one of the biggest mistakes that many start-up SMEs do while planning and setting their business goals. Some SMEs compare themselves with big companies and make unrealistic forecasts putting their business at higher risk. It is not a good idea to have over optimistic forecasts, forgetting the reality about the business. For every start-up business it is very important to get stability before they tap into new markets or geographical areas. SMEs that are poor in planning and market research generally go through this phase very often and suffer losses unnecessarily.
Wrong Hire
The success of any business is determined by the quality of the employees but not the quantity. Start-ups sometimes over estimate the business needs and hire excess people more than their actual requirement. It is also important for them to find high quality people with the right mix of skills who can add value to their business. A good way to tackle this problem is to evaluate the business needs, and explore various options available to have a healthy hiring.
Not Understanding Technology
By implementing right technology SMEs can automate some of their business processes, cut down their operating costs and also improve productivity. It may be too overwhelming for some SMEs to implement advanced technology at the start-up phase because they need to make sure that it is viable for their business. Without understanding the implications, it is not a good idea to experiment their systems with new technologies as it can hurt their business badly if things are not integrated well.
Creating a Niche
The bottom line is – whether it is big or small, every business need to create a niche in their respective vertical if they have to sustain in the business. For stat-ups it may be difficult at the beginning to identify their specialization and establish a niche in the market. But over the time it is essential to explore the market, and stay focused on a specific product instead of concentrating on the broad varieties. A niche created through thorough investigation by identifying the market needs can turn out as a successful formula for any business.