13/08/2013 Top 10 Business Mistakes When Starting a Business
Small Business: Canada
By Susan Ward, About.com Guide
Top 10 Business Mistakes When Starting a Business
Don't Make Starting a Business Harder Than It Has to Be
It always saddens me to see or hear of small businesses folding,
but when they close down within a year or two of opening, it’s
especially sad. And so many times this happens, it’s for the same
basic reason; someone has started the wrong business in the
wrong place at the wrong time.
If you want to start a business, read through the following list of
business mistakes and take them to heart. Any one of them could
sabotage your new business venture and turn it into a failure
rather than a success.
The Top Business Mistakes You Don’t Want to Make When
Starting a Business:
1) Not doing a business plan.
If I had even just fifty cents for every time someone asked me “Is this a good business idea?” over the years, I’d be a wealthy woman. The problem is,
unless I write a business plan , I have no idea – and you won’t, either. That’s the main purpose of a business plan. (Read 5 Reasons for Writing a
Business Plan to learn more.)
Yes, it’s time-consuming and demands a lot of research, but investing time now will save you so much time and money later.
2) Doing what you love.
In my opinion, the person who first said “Do what you love” should be shot. Or at least forced to eat seven bad restaurant meals in a row while
wearing pants that don’t fit properly in a building that can’t be adequately heated.
It sounds fine in theory, but the reality is there’s a whole lot of people out there who love things they’re not good at. My official advice? Don’t do what
you love ; do what you’re good at and what people will pay you (well) for. It’s not as catchy, but it’s a whole lot more profitable.
3) Not doing any market research .
I see increasing numbers of people starting businesses without bothering to do any of this – and then being heartbroken when their new business,
which they’ve invested so much time and money in, collapses. Test your products and service first before you start a business. If you don’t, you have
no idea if people are even going to want to buy them. You may think you make the tastiest pierogi in all the world. But will anyone else? Learn who to
Do Your Own Market Research .
4) Ignoring the competition.
Ignoring the competition won’t make it go away – and can be fatal to your new business. Simple question #1: If you’re selling your thingamabobs for
$10 apiece and Vera down the street is selling her thingamabobs for $6 apiece, how many thingamabobs are you going to sell?
And what if Vera’s thingamabobs look/smell/feel/taste better than yours? 6 Ways to Find Out What the Competition is Up To will show you how to
keep tabs on the competition that matters.
Another aspect of competition you need to understand is market saturation. The pie is only so big, so to speak, for every product or service. So, for
instance, if you want to open a dog grooming business, there may not be any “room” left in your local area to do so because of the number of dog
grooming businesses that already exist.
5) Not taking into account your own strengths and weaknesses.
We all have them. Unfortunately, sometimes our strengths or weaknesses don’t fit well with the business model we want to use, leading to disastrous
results. For example, if you’re not a friendly, outgoing type of person with good people skills, retail is not for you. It doesn’t matter how many years
you’ve dreamed of opening that ice cream parlour or book store, it’s not for you.
That doesn’t mean you can’t buy such a business or start one yourself, but for it to succeed, you need to be aware that working behind the counter is
not something you should be doing; you’ll need to hire staff right away. (Here’s what you need to know about Hiring Employees in Canada .)
6) Not understanding what you’re actually selling.
Helena Rubinstein , the first self-made female millionaire, didn’t become rich selling face cream; she became rich selling beauty. ("There are no ugly
women,” she used to say, “only lazy ones”.) If your new business is going to be successful, you need to know what you’re actually selling and craft
your Unique Selling Proposition accordingly.
Is starting a business your
Image (c) Jetta Productions /
Parece que tiene un bloqueador de anuncios ejecutándose. Poniendo SlideShare en la lista blanca de su bloqueador de anuncios, está apoyando a nuestra comunidad de creadores de contenidos.
¿Odia los anuncios?
Hemos actualizado nuestra política de privacidad.
Hemos actualizado su política de privacidad para cumplir con las cambiantes normativas de privacidad internacionales y para ofrecerle información sobre las limitadas formas en las que utilizamos sus datos.
Puede leer los detalles a continuación. Al aceptar, usted acepta la política de privacidad actualizada.