MISTAKES TO AVOID WHEN STARTING OR RUNNING A BUSINESS?

The first time I set up a business was when I got to University, of course before formally setting up a business I would look for ways I could make an income which I tried odd jobs. So the first business I ever registered was an enterprise and we would order computers from South Africa to Zambia and sale them to students. We got a steady market and it was slowly getting ground around the university community until we hit a roadblock and lost money and that’s how the company stopped operating. Going forward I have gone ahead to set up well performing companies, some changing lives and some offering a much needed service and along the way I have made a mistakes, some big some small.

By the way mistakes in starting and running a business are normal. Ask any business person you know, and they will be able to list countless blunders that they have committed in their career, actually hindsight is always 20/20.

Below are some of the lessons I’ve learned along the way.

1.   DON'T TRY AND DO EVERYTHING YOURSELF

Of course it’s your business and it’s your baby but at some point you got to let go because that’s just a great strategy. Here is why you need to keep this in mind. If you’re in it for the long haul and you’re making the right moves and you have an awesome working system your business will grow and will most definitely become too much for you as one person, you will then have two choices: either hire someone else or do everything yourself and risk burning out before the company grows into something big enough to allow for other people in management positions.

Asking others to help will most definitely work for you. It has worked really well for me because they're able to take on more responsibility as my company grows. This way, you don't have to manage all aspects by yourself while also doing what is required of an owner and manager role. 

2.   FIND A MENTOR AND MAKE DELIBERATE MEETINGS REGULARLY

Going back to point number one above about trying to do everything yourself. .. You can't. Why a mentor? You ask? Well one of the most important things is that Mentors are a great way to avoid costly mistakes and it also help you grow in business (that rubbing shoulders with great people kind of thing). It's worth your time when they provide access not only to their networks of contacts, but also to insight that might save you from making some common mistakes as well. If they have thrived and made it in your community with all the social, economic, psychological underlying factors am sure you can learn a thing or two on how to maneuver your business for success in your community or area of focus.

Think about all the times when this could come in handy: say you have an idea for how you can move forward with something in your business or maybe even need advice on what salary increase would be fair given your recent success. A mentor wouldn't just offer you suggestions — he or she would already know first-hand which answer is best.

3.   FIND LIKE-MINDED PEOPLE, NOT LIKE-SKILLED PEOPLE

Like minded in this case is people who are differently skilled but like minded for example people motivated to try building something bigger than themselves. Some areas might still be lacking professionals but work with what you have and build your business till you come across equally enthusiastic individuals who have different skill sets.

4.   PLAN, PLAN, PLAN (WITH THE FUTURE IN MIND)

One thing I have always kept in my mind from the informal businesses I started is that I would like to set up something that will be bigger than me in more ways than one. Over the years I’ve come to discover that this is actually a company infrastructure mindset. So you ask yourself: If my business tripled in size overnight, would I have the right employees to take care of it? Would they know what their roles are and how they're expected to act when things go wrong? Will there be enough computers, desks or equipment for them all if we grew too fast? (Because trust me, rare as it might be, it might happen). Think about your team's workload now — can you handle the added strain that comes with growth at scale without investing more time upfront, so each employee has less work on his or her plate as operations expand exponentially over time?

When those potential scenarios become a reality (and they will), you don't want to squander them because you didn't plan ahead. 

5.   PAY NO MIND TO THE PESSIMISTS (NAYSAYERS)

When you start to tell people about your business, they will question it. Peers and strangers alike are going to be hostile or give you their passive-aggressive opinions about your business, and that's okay. Just remember it's your business, not theirs so all those opinions you take them under advisement. You decide to start on your own, take a risk and do something you're passionate about. It’s normal at first to question what you’re doing all the time. Such as do I have enough capital? Do we have enough money for the payroll? Can we afford another employee? Are we growing at a sustainable rate? You should also remember that it's important not to become a naysayer yourself. If you believe in something, to hell with what everyone else says about your dream. Go after it and get it.

6.   END THAT BUSINESS ENGAGEMENT – ITS OK

This is a hard one I know. When you begin doing business with someone, they may have been the best client in town when it comes to monthly revenue. But then you discover that their product might not be what your company needs especially for its long-term viability.

For example a client is causing 80 percent of your headaches and is contributing less than 5 percent of your revenue. Honestly does this math add up? So when you “ditch” this client it means you have freed up more time and have cut down on unnecessary annoyances. The significant thing that will happen you can now take all of that free time and put it toward marketing strategy and doubling our best clients. This will most definitely play an essential part in your business growth over time. It may be counterintuitive, but sometimes letting go of business can create more revenue opportunities.

 

7.   SPEND SOME MONEY FOR THE RIGHT TOOLS NEEDED FOR YOUR BUSINESS

Spending money is always a tough pill to swallow when you're just starting your business, but it's something that could ultimately pay off in the long run. Software/equipment is expensive upfront without any guarantees of how well it'll perform or whether the company will stick with it over time. But one technique you can try is always evaluate every new piece of software/equipment you buy based on lifetime value instead of immediate cost-benefit analysis. As soon as you or your team starts using a service/equipment, more often than not, you’ll start seeing significant benefits from said service/equipment, which usually pays for itself relatively quickly.

For example hire a photographer  pay for professionally edited high quality photos that will help your business to stand out. Might not be cheap, but the time you save by using your images instead of searching online and risking using same images as everyone is just about priceless. The legal safety that comes with these quality pictures will save you from getting sued or having our work taken down. The upfront cost is a drop in the bucket relative to the payoff in the grand scheme of things.

It's not uncommon for startups to make mistakes while building their business. You will want mentors that you can lean on and learn from in order to stay successful. Still, some things should be avoided, so as long as occasional mistakes happen, they won't hurt your company too much. Test new ideas and get feedback so you know what features need work or if the whole idea needs changing altogether.

One thing you can take from this is that failure is just a lesson waiting to be learned from. Sure, it's tough when you pivot your business model and test new ideas for feedback only to find that they don't work out the way you'd hoped, but every mistake or setback always comes with something valuable in return if you don't let your pride get in the way of admitting what needs changing.

 What other business startup mistakes can you share below… feel free to leave a comment and share.