Want to avoid unnecessary mistakes when starting your own business? Eager to get ahead and start building a successful business from the start? You’re in the right spot.
Starting a business from scratch is never a perfect journey. But, with the right foundational pillars in place, you can prevent costly mistakes and attract more sales.
Let’s take a closer look at eight mistakes successful businesses avoid when first starting out. Bookmark this article and print it out for easy reference!
Not Having a Specific Business Plan
You’ve chosen a profitable business idea… but do you have a plan to bring it to life?
Without careful research and a strategic operating framework, you could be spinning your wheels and focusing on tasks that don’t matter.
Instead, carve out time to conduct market research, competitive intelligence reporting, and customer analysis. You’ll also need a financial plan, an executive summary, and a company overview.
If you’ve never created a business plan before, consider securing an industry-specific template from a business resource site like Growthink.
For instance, if you’re starting a trucking business, you can opt for the trucking business plan. Or, if you’re starting an HR consulting business, you can opt for the HR consulting business plan. Simply choose the right plan for your industry and fill in the template.
You can also start with a simple business plan template for the initial research phase — and then make it official with an industry-specific template.
When filling in your plan, move slowly and accurately. This will determine how your business functions in and out, so do your due diligence to complete it with intention. If you need extra support, consider meeting with a business consultant for a tailored approach.
Choosing the Wrong Business Structure
The business model and entity you choose determines how you’ll pay taxes and manage your financials — and what kind of asset protection you’ll have.
Choosing the wrong one may put you at risk for costly fees — or worse, bankruptcy.
For instance, without an LLC to shield personal assets, you could lose access to your personal savings and investments in case of a business debt or lawsuit.
Business entity descriptions also vary by state.
For example, each state has its own LLC laws, so being aware of the ins and outs of the LLC requirements in your area is critical if you choose this legal structure.
Make sure to thoroughly research and understand the specific requirements and regulations for each entity in your state. This can help you avoid legal pitfalls and ensure your business is built on solid ground.
Better yet, ask a registered agent to help you select the best legal structure for your specific business and goals. They’ll run through each option with you so you can understand the benefits and limitations of each structure.
Choosing the Wrong Hosting For Your Business Website
Every business needs a website, and every website needs hosting. However, not every website needs the same hosting service.
It’s essential to choose the type of hosting that will best support your website and keep your business running smoothly. The six types of hosting you should be familiar with and consider are:
- Virtual Dedicated Server (VDS) Hosting
- Virtual Private Server (VPS) Hosting
- Dedicated Server Hosting
- WordPress Hosting
- Windows Hosting
- Shared Hosting
Ultahost offers multiple plans for each of these six types of hosting. Each has pros and cons, from required technical know-how and scalability to expense and security. It’s vital you explore each hosting option thoroughly before deciding which to utilize for your website.
Beyond your own research, speaking to experts is also an excellent way to gain valuable insights into which hosting option best fits your business needs. Ultahost has resources galore – FAQs, an extensive blog, a knowledge base, and more.
Investigate thoroughly before locking in your choice. Make sure your hosting ticks all the right boxes without offering way more than you need (or blowing your budget).
Not Having Enough Upfront Capital
Starting a business with zero or limited funds can create unnecessary stress and limitations.
You might:
- Not have enough working capital to buy supplies to fill large orders
- Avoid hiring a (necessary) team to help you run your business
- Put off running