Before You Start That Business

S

o you decide to start-up a business. You have an idea. Let's say you want to be a carpenter. You print some brochures, some business cards, pay about N100,000 for a website and a domain name that tells everyone about your amazing credentials and experience. You distribute your fliers on the streets and to friends and relatives. And then you wait. And wait. And wait...

Nothing happens. But, that's what everyone starting a business does, isn’t it? Print out some brochures, tell everyone how great you are, and wait for the money to roll in.

Stop right there!!! You have just made several of the top 10    start-up mistakes entrepreneurs make when starting a business.

Mistake # 1:

First, being a "carpenter" is too general. There are a million carpenters in the world, but the only successful ones have something to concentrate on. Wood carving, house renovation, specialized pieces. Like the old saying goes, "Jack of all trades, master of none."

Lesson: Create a niche instead of just offering a common service or item. Be specific.

Mistake # 2:

If you fail to plan, you plan to fail. An idea is not a business plan, or a marketing plan, or even a goal. It is simply an idea. Although the planning process may seem long and tedious now, it will benefit you more than you could imagine in the future.

Your plan should guide you, but not constrain you. If something in your plan doesn't fit just right, change it.

Lesson: Planning is the key and soul of any business. Never stop planning.

Mistake # 3:

Brochures and business cards are garbage to start-up businesses!

You will spend far more producing them than they will produce for you. Ignoring the high cost of printing these materials, and the costs associated in designing them if you aren't proficient yourself, most start-up businesses change too quickly for these materials to be effective for more than a short period, sometimes as little as days.

Don't waste your time, or your money, on brochures and business cards until you can keep your typical sales presentation the same for at least six months.

Otherwise, for business start-ups, these things aren't worth the trouble.

Lesson: Cards and brochures don`t keep or put you in business; they to just banners highlighting your product and contact details.

Mistake # 4: Get your finances right from the get go. Know the amount of resources you are willing to invest into your business because you don`t want to dip hands unconsciously into personal reserves. You will be out of business before the snap of fingers.

The key is to itemise your expenses and keep record of income from business before you can afford to hire an account clerk.

Lesson: Starting a business is going past the “hobby-line”. Keep your purse in check lest the business that is meant to secure your life, mars it.

Mistake # 5:

N100,000 for a website and domain name? A website and domain name before a marketing plan? This scenario is already causing headaches for those of you "in the know". Best idea for a business start-up, design your own website for free if you can. Second best idea for a business start-up, get a friend or relative to design it for free. Third best; pay a minimal fee for the complicated stuff and the rest can be done by yourself and a relative.

Lesson: Get as much freebies from friends and allies.

Mistake # 6:

Your qualification or where you learnt your trade is of little concern to you prospects! Most likely, they won't even think that. As a carpenter, most customers think, "Wow! Look at his work. It is just what I need." And that is what you want your customers to think. Don't promote yourself; promote your solutions. Everyone who comes to your website has a problem they need solved. If you figure out that problem, and can tell them how to solve it using your website, you have just hit a marketing gold-mine.

Lesson: Never put self first; only a model should do that. Let your product be the highlight of your scheme.

Mistake # 7:

What is a carpenter doing at a grocery store? And why is he handing out fliers anyway? If you do hand out fliers, do it where it counts. A carpenter should hand out fliers at a lumber yard or furniture store. Even a department store that sells nails would be a better location for a carpenter when handing out fliers. Think about it.

Lesson: Be at the right place at any point in time. Being there at the right might be difficult. Just be where you are going to make an impact.

Mistake # 8: You stopped marketing. This is probably the biggest mistake for a business start-up. Even if you do exactly the opposite of everything you have read so far, if you keep doing it you are bound to get at least minimal results.

The key to marketing is repetition. Make sure people think of your name when they have a problem. If they have only seen your name once, but your competitor just sent them a third flier, your competitor will get their business.

Lesson: Be persistent, be thorough.

Mistake # 9: When nothing happened, you didn't try again. Nothing says failure like someone who quits. Motivate yourself! Get up in the morning and say "I'm going to get hits to my website." Or "I’m going to get a client this week!" If you build it, but nobody knows it`s there, nobody is going to come. When you’re starting a business, you have to try, make mistakes, learn, and try again. If you try, make a mistake, and give up, you will never be the success you know you can be.

Lesson: Once you have a good conviction and a well outlined plan; press-on. Don`t quit!!!

Mistake # 10: You assumed that what everyone else does will work for you. Wrong! What everyone else does took them a long time to figure out, and they have been tweaking it all that time to make it work right for them. If you copy part, but not all, of what they do, you will never get the same results. People strive for individuality, and businesses should too. If you copy your competitor in every aspect, your prospects might as well flip a coin. Do you want 50% of the business you could be getting? No, you want it all!

The bottom line with a business start-up is to stay motivated. Starting a business is one of the hardest things anyone can ever do because of the uncertainty, the lack of a support structure and the complete and total disregard of your typical safety zone. It is all part of starting a business.

The rewards are far greater than the sacrifices. And in the end, when you are financially secure and independent from the corporate world, it will be more gratifying than you could have ever dreamed.

GOOD-LUCK!!!