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.
