8 Common Mistakes When Starting a Business

Taking the entrepreneurial leap to start a new business is scary and it certainly requires a certain level of confidence, preparation, and hope. There are almost 29 small businesses in the United States alone, creating a landscape that encourages new ideas to grow into new businesses. Unfortunately, however, statistics do not work in the favor of startup companies. In fact, approximately two-thirds of businesses only survive 2 years and nearly half of all businesses fail after 5 years. These numbers seem to be consistent across every industry and, while they should be taken seriously, starting a business is still an incredible thing to accomplish. Those who are bold enough to take an idea and transform it into a business are the people who push our economy in the right direction.

While no one can predict what will happen to a new business, being prepared is one of the best safeguards against startup failure. Entrepreneurs who are aware of common mistakes are placed in the best position to avoid them in their own businesses. The following are 8 common mistakes that people make when starting a new business:

1. Failing to create a detailed plan – while unpredictability is in the nature of startups, a set plan must be in place to keep things structured
2. Employing the wrong people – be sure to really get to know who you are hiring and the specific skill set that they will bring to your team
3. Pricing products or services incorrectly – overvaluing or undervaluing your business’s offerings is a costly mistake
4. Lacking a set of goals – without objectives in place, a new company will be lost and unable to measure successes or failures
5. Avoiding an attorney – hiring a business attorney is essential when it comes to startups and avoiding doing so will cost you a lot in the long run
6. Forgetting marketing – far too many new businesses cut corners to save money in marketing and end up failing to promote their new business altogether
7. Neglecting the customer – having a deep understanding of your target customer and their needs is critical
8. Ignoring technology – whether you like it or not, technology is here to stay and making it work for your new business is absolutely necessary

Starting a new company is no easy task. However, entrepreneurs who succeed are armed with the right mindset, a sound strategy, and a dedication to doing things the right way. At the Law Office of Brenda Murzyn, P.C. we are well versed in business formation. Contact our office today to get started on your new business.