Starting a business in New York can be exciting, but it is also very challenging. It is not something to lightly go into, as there are many things that can go wrong and quickly lead to the company's demise. It is important to understand some common mistakes that new business owners make so others can avoid them.
Some entrepreneurs decide to take on a partner to help run the business, and while this can be a successful strategy, Investopedia warns that picking the wrong partner can be disastrous. One should not choose a partner just because of family or friend ties, as this blurs boundaries and can interfere with important communications. A good partner ideally should have some business experience and should balance the skills of the other to help the business run more effectively.
According to Entrepreneur, it is important that new business owners set realistic goals and plan out steps to achieve them. Another mistake is taking marketing for granted. Most businesses require a lot more than word of mouth, especially during the beginning phases. A good chunk of start-up money should go towards well, thought-out marketing plans.
Entrepreneurs make a lot of mistakes regarding money. Some of the more common ones include:
- Spending very little money at the beginning
- Spending way too much money
- Not spending money on high-quality employees, contractors or consultants
- Keeping profit margins too small
- Putting making money a priority over customer loyalty
Another mistake some new business owners make is letting fears take over. It is normal to be fearful of failure or rejection, but successful owners learn to overcome these fears.