5 Mistakes Startup Businesses Make
Starting a new business is both exciting and potentially stressful depending on the hurdles you run into along the way. If running a business is new territory, you should expect that a few mistakes will occur while creating and establishing business policies, clients, and strategies. Many entrepreneurs share stories about the mistakes they made in their early business days and how they learned from the moment.
At Rumbaugh Insurance, we work with startup businesses just like you and put together a list of common mistakes we’ve seen over the years with tips on how to avoid them.
1. Not researching customers.
Customers are the lifeblood of your business because without them you can’t make any money. Failing to research the market and customers in advance will result in loss of customers, costly decisions, and the inability to reach your goals.
Take the time not only to identify who your ideal customers are but also to uncover what they want and expect from a business like yours. Tackle research by creating focus groups, customer interest surveys, and networking with potential customers.
2. Not creating organizational systems.
Starting a business without defined organizational systems or processes may not seem like a big deal, but it will cost you time and stress later on. Many entrepreneurs don’t think about this early enough because it is just them in the beginning. However, as you start to grow, if things are scattered, you will find it difficult to stay caught up which leads to poor customer service.
3. Being too scared to fail.
Being conservative isn’t a bad thing unless it holds you back from growing a business. Too often, new businesses are scared to spend money on marketing, invest in technology, or sway from their original business plan as new opportunities emerge.
Taking all the risks that come with starting a business requires that you leap in the entire way at first. Don’t limit your business from reaching its full potential, instead weigh the pros and cons of spending money on certain items and how it will help you achieve your long-term goals.
4. Not hiring early enough.
Substantial growth often occurs when a business least expects it and when they don’t have the team members in place to handle it. Start with hiring a part-time employee or outsourcing specific tasks to a marketing agency or virtual assistant. Having individuals in place that already understand your business when growth occurs helps you adjust better and more quickly.
5. Forgetting the business insurance.
No matter how careful you are, lawsuits still happen every day, and business insurance is the best way to protect a business from financial devastation. Contact a local insurance agency to review your business services and products and discuss business insurance options. An independent insurance agent represents multiple companies so you can be sure you find policies with the best coverages that match your startup budget.
If you have questions about business insurance for a startup or an existing business, contact the team at Rumbaugh Insurance today.