Do you have a new business idea and are you excited to launch it? Read this first. Starting a new business can feel overwhelming. This is true, especially if you lack the proper knowledge. Worse still, you risk making costly mistakes that could set you back significantly.
To avoid that, we reached out to our community members. These included experienced entrepreneurs from tech, e-commerce, and gaming (like Bizzo Casino Login). They discussed their mistakes as new business owners and shared tips to help you avoid those early problems.
Let’s dive in.
New Business? Avoid These Common Mistakes
Mistakes are part of learning, and everyone makes them. Yet, it is better to learn from the mistakes of others than from one’s own mistakes. The following are mistakes to avoid when building a successful business as a newbie.
Not Learning about the Business before Starting
Ochi Ekene, the founder of Feetz Luxuries, said, “I didn’t get enough knowledge about my business before I started, and it affected me a lot.” Are you also guilty of this? Are you genuinely prepared to launch your business or hope for the best?
Knowing your business inside out is essential for building a strong foundation. Talk to or watch firms and people in your niche. Learning from others’ journeys can offer you practical wisdom.
You can learn by:
- Reading books
- Joining business accelerators.
- Talking to a business coach.
- Joining a business community.
- And more.
Learn about your niche and understand how to run a successful business.
Not Identifying the Right Audience to Target
Another common mistake newbie business owners make is not identifying their target audience. We discussed this in our business community, and many people said they had this challenge. Clearly defining your target audience is crucial for sustained growth. First, it helps you make valuable content that solves their problems. Then, it finds the proper channels to attract them. A lack of knowledge of your target audience is like shooting in the dark—you will keep missing your target. To learn more, read our guide on identifying your target audience.
Not Separating Your Business Bank Account from Your Account
When we asked people to state the business mistakes they made when starting, two people said this. Eunice Adekunle, the founder of SBC, shared, “I made a mistake with my printing business. I didn’t create a separate bank account for it.” This meant I couldn’t track the money made, setting my business back to square one. Combining personal funds with business funds can be detrimental to a business. This is one of many examples that prove this point.
She said, “I combined my business funds with personal funds and spent them together as they came. Mixing funds left me without the cash flow needed to restock my inventory. So, I had to always wait until the end of the month to take out funds from my full-time job salary to fund my business.” To avoid this mistake, open a business account as soon as you begin operations. Even if your business is not registered, you can open an account in your name dedicated to the company. Separating finances simplifies tracking your business’s financial health. It aids decision-making and helps you secure the funding necessary for growth.
Not Crafting a Business Plan
A business plan outlines your objectives, financial projections, marketing strategies, and target market. It’s your roadmap to success and a powerful tool for sharing your vision with investors. If that feels like too much, try a Business Model Canvas. This plan fits on one page. It shows what your business is about. It includes what you offer, who your customers are, and how you make money.
Not Keeping Financial Records
Here’s the story as told by Mustapha Ibrahim of Musty Telecom. I was in school for my final year projects and exams and couldn’t handle the business as before. So, I employed someone, and due to my trust in her, I allowed her to make transactions without checking in. The day I realized my mistake was when I came around and she made a failed transaction. The transaction responded with insufficient funds, but she wanted to pay the person. Hearing the terminal’s beeps made me double-check the transaction. It was unsuccessful. Right then, I began to calculate and saw I had lost around $93,000 as an undergrad trying to succeed. I felt so broken and disturbed. Since that day, I have completely followed my cousin’s financial record template! I’ve learned that keeping accurate records is vital for business survival. That loss became my turning point – a proper ‘Break to Make’ moment. I am sure you have already learned many lessons from those stories. Let’s move on to the next one.
Starting Your New Business Like a Pro
Yet, you needn’t do trial and error with a new business. You can get ahead by learning from those more experienced. Join a community that helps you grow.
At Triift Africa, we help business owners. We give them the tools they need to start and grow successfully. In our community, you’ll connect with other sharp business owners. They’ll help you turn your hustle into a thriving portfolio.
