19/07/2023
EIGHT (8) SILLY MISTAKES BUSINESS STARTUP OWNERS MAKE
1. TOO MANY PARTNERS: It is true that a business hardly survives through one person, but then the others must not be partners.
Instead of having partners, you can have a log of investors who just give out their money for the returns but has no administrative or political interest in the business. This will make the control of the business easier as everyone will not have to depend on everyone to make crucial plans and decision.
2. RUSHED OR WRONG EMPLOYMENT: When a business starts, the first thing is not to employ all the staffs in the world, look for the few key workers who can play multiple roles to sustain that business for the time being. If possible, pay your key employees by little shares or percentages (pay as you earn).
Handle some of your bulky/complex tasks through affiliates or same line consultants (those doing the same business with you) until you have sufficient clients to pull resources that can pay salaries.
3. NOT REGISTERING THE BUSINESS/COMPANY NAME: Once you have come up with your business concept, chosen a brand name or running structure, the next step is to register your business/company. Registering your business gives you privilege to several things such as name security, audacity to invest in branding and advert, ability to secure loan, capacity to own a corporate account, build community trust, sell of equity, amongst many others. If you have not registered your trade, stop promoting the trade name because their is possibility that someone else has taken the name.
4. TAKING A BUSINESS LOAN:
Loan they say is cheaper than equity. But then, loan could be very risky for a startup that has not made any returns of investment. The burden of trying to fight to keep the business strong, sort the bills (current expenditures), pay salaries and also payback loans with exorbitant interest rate is enough to frustrate the business. Instead of borrowing money for the business, you can choose alternative finance source such as syndicate fund, sell of equity, pitch for investors, personal savings or just borrow from someone you know.
5. SPENDING MORE THAN YOU EARN:
The pressure to spend more once the business starts is unavoidable. That feeling that comes with you becoming a new CEO of a business and trying to live up to people's expectation. You must caution spending on unnecessary stuffs once you start a business. Buy things from your personal funds not the business fund because the business is a separate entity from you, do not pay salaries if possible, look for people who will work on percentage or earn as they work. Try by all means to spend lesser than you earn.
6. RIGIDITY ABOUT AN IDEA: Rigidity about your idea is different from consistency as many people misconcepts. Do not waste your life and resources on something that is probably outdated or cannot work for the time, try to be flexible.
You can pivot or affiliate your other ideas, but ensure the consistency is not negotiated and that you do not totally derail from your line of business. While you have a company or business name, you can have different products under it. Be sensitive to know when to stop, draw back, readjust and kick off again.
7. MORE TALKS AND LESS WORKS: Do not let words inform people of your plans, let your actions do.
People do not need your beautiful stories, they need amazing results.
While you think, plan and talk with your team, ensure you x3 your actions.
Do not just be a CEO by title or mouth. Because the full meaning is Chief EXECUTIVE Officer.
It is your job to execute ideas and deliver results not talks.
8. NONE DEDICATION OF TIME TO BUSINESS: No matter what you put into a business, if you don't put in your time, it will not pull through, even if it manages to do.. it won't stay long.
Business requires time. Not just time of the workers or staffs, but time of the stakeholders.
Many employees do not care what happens as far as their dough comes to them regularly. If the business fails, they get another job!
If the business fails, you lose everything.
© S. T. Uchendu | Leads Consults Solutions - 2022
