Mistakes to Avoid When Starting a Business

[Stavri]

Absolutely, put aside enough money to support yourself and your family for at least 3 years. You can even put it in your spouse’s bank account
Because when business goes bad and you can’t send enough money home, it’s really demoralizing. One of the most important parts of being a good businessman is managing your budget.

[Koadharber]

OP, no offense but I don't think this is helpful advice. Because what you provide is basic business knowledge and it is not too difficult to find on the internet. Even people who have never started a business know these things.

If you want to give business advice, you need to be an entrepreneur first, running a business and the advice should be drawn from your own business career. It is really meaningful and helpful for those who are planning to start a business.

Experience can indeed be a very valuable lesson.

The OP's intention is for us to discuss this, and I see several of our friends also continuing to share their own experiences and advice so we can all learn together.

I once started a small business, and while I've minimized all the mistakes, as the OP stated, there are indeed many problems that arise without us predicting them. The most important thing is how we resolve these small problems so they don't have a major impact. Managing our emotions is quite important.

Experience would be the best teacher on which this isnt that only talking about business but in all sorts of things on which that you are trying out to get involved with. You wouldnt be able to learn something new if you wont try, and just like been said by most people on here is that there's no guarantee on what your business outcome or result it would be, whether it would be a success or failure on which it will depending on several factors and thats why its important that you do set up back up plans. So that at the time that there are unfortunate things do happen then you are already that prepared for that one rather than on panicking and found yourself making up some huge mistakes into your investment decisions.

Its always important that you should be having that passion and seriousness once you do decide to dive in into business on which its something that you would be needing up to consider at the time you do made out such venture. Its not easy but once you do able to pass through challenges then it will be giving out that financial freedom that you are wanting for.

[lizarder]

CONCLUSION
A successful startup is not built by one person alone, so surround yourself with subject matter experts and mentors you can lean on and learn from. Don’t be afraid of failure; instead, learn from your mistakes and pivot your business model as needed. Test new ideas and acquire feedback so you can tweak your product to better meet customers’ needs

Businesses also need to be run based on knowledge. Sometimes people think that running a business can be done by learning as we go. This is a bad decision, because building a business isn't as easy as it seems, as we will face many challenges along the way. Preparing a thriving business doesn't happen overnight, as many things are needed to grow and develop a business. Some people think learning about promotions will increase sales, but relying on promotions alone isn't enough because we will face competitors in the same business.

The bottom line is, there are many things we need to learn so our businesses can grow over time. In my opinion, the most important thing isn't who succeeds the fastest in business, but how someone can persevere and continue striving for success. This will gain experience and enable us to survive in any business environment.

[allthebitandbobs]

I didn't say that lack of finance isn't a problem. It's almost the main problem causing failire for the great majority of economic fabric. Wise entrepreneurs can overcome some of those issues relying on small loans from closed people or by building trust with suppliers and client base. Overall, there are no projects whatever how big they are, can succeed without a strong financial base, in addition to project management based skills.

Working capital is what keeps the business alive. Even if they manage to borrow some amount from friends and family, they still will not be able to survive for a long time because they will always need huge working capital. Many times, we see that new ventures have to burn some money in order to get customers and they often believe that they can wind up still making profits if they maximize their customer base. This does not happen and this will soon turn their business into a misery if they do not have enough capital left for expenses.

Even banks or investors would not just blindly invest, they will check past records and also the PNL statement. If the company is making losses since the time they launched than it might demotivate the investors or they might either end up offering minimum amount for major portion of shares.

[Iamgoat]

Absolutely, put aside enough money to support yourself and your family for at least 3 years. You can even put it in your spouse’s bank account
Because when business goes bad and you can’t send enough money home, it’s really demoralizing. One of the most important parts of being a good businessman is managing your budget.

You can only put the money in your spouse's account when she is also a very disciplined person when it comes to finances because you know how ladies are with the issue of handling funds which do nor belong to them but their spouses or life partners. Who else noticed women are the best managers of their own finances but could be the worst manager's of their men's finances. Women have this weak attitude of not holding their spouse's finances tight as much as they will hold theirs or of someone else. I don't know if it is peculiar to women around here or it is a general issue. Although I won't say it applies to all women but I've tested several of them and it has proven right.

[Bitcoin Smith]

Absolutely, put aside enough money to support yourself and your family for at least 3 years. You can even put it in your spouse’s bank account
Because when business goes bad and you can’t send enough money home, it’s really demoralizing. One of the most important parts of being a good businessman is managing your budget.

When was the last time we ever had the money needed for the next 3 years? I doubt I had it as cash. Most of the business runs on the debt so it is okay to take loan but there should be a complete plan for making the startup as successful with calculating all the potential risks involved. Running a new business is kind of risky when the market all over the world is not on the high so instead of business the investor seems to be a safe option because it save us from a lot of stress and we can just focus on something that can give us peace.

[Furious 7]

When was the last time we ever had the money needed for the next 3 years? I doubt I had it as cash. Most of the business runs on the debt so it is okay to take loan but there should be a complete plan for making the startup as successful with calculating all the potential risks involved. Running a new business is kind of risky when the market all over the world is not on the high so instead of business the investor seems to be a safe option because it save us from a lot of stress and we can just focus on something that can give us peace.

Sometimes there are still many people who indicate that loans are something negative even though this happens because most of us are borrowing to meet the standard of living that is carried out but it cannot be denied that there are still good loans especially when we are doing business.

It would be great if we don't get involved in debt when we can't afford it but when the business wants to try to be enlarged and our conditions don't allow it then it's not a problem for us to borrow with the purpose and progress that our business does it is very possible.
The important thing to realize from the start is how we do business and realize whether we have qualifications in business or not because I think this is an important thing that must be known from the start.

[Cookdata]

Absolutely, put aside enough money to support yourself and your family for at least 3 years. You can even put it in your spouse’s bank account
Because when business goes bad and you can’t send enough money home, it’s really demoralizing. One of the most important parts of being a good businessman is managing your budget.

Whether you have a business or not, your family business should be exclusive in any plans you have. Don't involve your family expenses on business you are just starting out, this shouldn't be about family alone, any responsibility that is not that of the business should stay put. Before the business you were doing well and fine, continue to use the idea to fund your family expenses, if it's salary from work let it be and never change it unless you see the need to do it.

We put too much emphasis on bills that doesn't concern a set up. You see a business person that is try to put his business in a good place taking money from the business to finance their house responsibilities and they hope the business becomes expandable and bigger, lmao.

[terrific]

Absolutely, put aside enough money to support yourself and your family for at least 3 years. You can even put it in your spouse’s bank account
Because when business goes bad and you can’t send enough money home, it’s really demoralizing. One of the most important parts of being a good businessman is managing your budget.

And also putting all budget in that business when you are unsure yet of the step that you're about to do, many businessmen think that it's going to work for most of them when it's not.
They need to test the waters before investing all the money they have in the invest.
Because not all that does put all of the money there are becoming successful. There are times that it's not worth to put all of your resources all at once.

[Rengga Jati]

One note I've drawn from my own experience about starting a new business, in addition to those already listed by the OP:

Better to hire the professionals
When we truly can't manage it ourselves, it's better to hire professionals for some of the things we need to prepare for the business strategy. This doesn't mean you have to hire them long-term. However, it's better to hire them professionally to provide consulting and management for the business plan.

Don't force yourself to collaborate with family or friends to start a business if they don't have the skills. If you ever have to incorporate them into your business, make sure it's in accordance with their abilities. Don't mix family or kinship relationships with business, as this could have negative consequences later on if not handled professionally.

In this case, if we already understand their nature and abilities to what extent, and when we feel that our way of thinking is quite different from theirs, never force ourselves to cooperate with them, especially if it will actually backfire, especially if we only feel pity.

[JiiBs]

Absolutely, put aside enough money to support yourself and your family for at least 3 years. You can even put it in your spouse’s bank account
Because when business goes bad and you can’t send enough money home, it’s really demoralizing. One of the most important parts of being a good businessman is managing your budget.

Most entrepreneurs don’t have this luxury. Those who might have this level of luxury are those that must have made something for themselves off business or some job and probably had enough at that.
When you don’t have all that and you’ve got just about what you would need for the start up, your best option would always be, having to tag along with those that have been in that field of business and understands or are making real progress in that business. They would turn out to be your guide eventually and you would find yourself making less and less mistakes.

[junder]

Experience would be the best teacher on which this isnt that only talking about business but in all sorts of things on which that you are trying out to get involved with. You wouldnt be able to learn something new if you wont try, and just like been said by most people on here is that there's no guarantee on what your business outcome or result it would be, whether it would be a success or failure on which it will depending on several factors and thats why its important that you do set up back up plans. So that at the time that there are unfortunate things do happen then you are already that prepared for that one rather than on panicking and found yourself making up some huge mistakes into your investment decisions.

Its always important that you should be having that passion and seriousness once you do decide to dive in into business on which its something that you would be needing up to consider at the time you do made out such venture. Its not easy but once you do able to pass through challenges then it will be giving out that financial freedom that you are wanting for.

While there are no guarantees in business, it's certain that everyone in business will do their best to ensure their business is profitable and continues to grow. Furthermore, having the desire to start a business signifies a bold move. As you said, we won't learn or gain new knowledge or new skills; by daring to try, we will gain new knowledge and experience.
Do you agree with the statement that success or failure is always a matter of trying?
I'm quite convinced by that statement.

[Iranus]

Experience can indeed be a very valuable lesson.

The OP's intention is for us to discuss this, and I see several of our friends also continuing to share their own experiences and advice so we can all learn together.

I once started a small business, and while I've minimized all the mistakes, as the OP stated, there are indeed many problems that arise without us predicting them. The most important thing is how we resolve these small problems so they don't have a major impact. Managing our emotions is quite important.

In business, practical experience is the factor that helps us succeed, not mere theory.

People are enthusiastically discussing and sharing experiences with each other but if you pay attention. Most people just discuss what they think or hear somewhere, not many share their real experiences. Because most of us here are not entrepreneurs and very few of us have been or are in business.

In addition, each business field will have different difficulties and challenges and will have different experiences and lessons. Discussing and sharing general knowledge and experiences, honestly, this doesn't help anyone.

[Kelward]

Absolutely, put aside enough money to support yourself and your family for at least 3 years. You can even put it in your spouse’s bank account
Because when business goes bad and you can’t send enough money home, it’s really demoralizing. One of the most important parts of being a good businessman is managing your budget.

You raised a very important point for people that are planing to start a new business, most businesses takes time to grow and give profit to sustain the owner therefore they must make provisions for their survival pending when the business will stand. Taking most of your funds to start a new business is not a good business plan especially when you have financial responsibilities. If you cannot take care of your basic needs you will be forced to take money from the growing business which can affect it's growth. It is better to first save up startup capital before starting a business so that you wouldn't rely on it to survive, this is what kills many startups.

[KiaKia]

How is trying to do everything yourself a bad idea? Many businesses have fallen because the workers mismanaged the business funds.

Someone I know ran a multimillion company in my country, paying people salaries every month to help the public but they started stealing the company's money unless the company can't afford to run any longer.

They are the ones feeling the hit just like the owner said, he build the company to help people who are jobless in the country but they turned themselves into leeches and now they are jobless.

People will try to take advantage of your kindness even when you are trying to help them, this is the biggest lesson I learnt from this man and to be frank, my country is full of such bad people who don't take kindness as help, they would rather want to take over everything you have to themselves.

[DanWalker]

How is trying to do everything yourself a bad idea? Many businesses have fallen because the workers mismanaged the business funds.

Someone I know ran a multimillion company in my country, paying people salaries every month to help the public but they started stealing the company's money unless the company can't afford to run any longer.

They are the ones feeling the hit just like the owner said, he build the company to help people who are jobless in the country but they turned themselves into leeches and now they are jobless.

People will try to take advantage of your kindness even when you are trying to help them, this is the biggest lesson I learnt from this man and to be frank, my country is full of such bad people who don't take kindness as help, they would rather want to take over everything you have to themselves.

No one is kind enough to spend millions of dollars, or their entire fortune, to start a company just to help other people get jobs and earn income to support themselves. That is a blatant lie and the most ridiculous reason I have ever heard from a failed entrepreneur.

Anyone who intends to do business does not do it out of compassion, they do business to make profit, get rich.

In business, if a company goes bankrupt due to dishonest behavior of its employees, the ultimate responsibility lies with the business owner. They failed in managing and operating the business. Blaming others and making himself a victim will not change the fact that the failure stemmed from his poor management and supervision.

[Fredomago]

Experience can indeed be a very valuable lesson.

The OP's intention is for us to discuss this, and I see several of our friends also continuing to share their own experiences and advice so we can all learn together.

I once started a small business, and while I've minimized all the mistakes, as the OP stated, there are indeed many problems that arise without us predicting them. The most important thing is how we resolve these small problems so they don't have a major impact. Managing our emotions is quite important.

In business, practical experience is the factor that helps us succeed, not mere theory.

People are enthusiastically discussing and sharing experiences with each other but if you pay attention. Most people just discuss what they think or hear somewhere, not many share their real experiences. Because most of us here are not entrepreneurs and very few of us have been or are in business.

In addition, each business field will have different difficulties and challenges and will have different experiences and lessons. Discussing and sharing general knowledge and experiences, honestly, this doesn't help anyone.

I agree to that, there are success stories and there are some who shares ideas and information to what struggles that they encounter during the early stage of their business, but for those who unable to make a success most of them did try to find other venue and start again to see if they are fit to whatever field they choose to venture their opportunity, though mistake is not by far but for those who loves to keep lerning new sets of ideas.

They will treat struggles and difficulties as test to keep pushing their best and to find real success and harvest the fruit of their hardworks.

[Bitcoin Smith]

When was the last time we ever had the money needed for the next 3 years? I doubt I had it as cash. Most of the business runs on the debt so it is okay to take loan but there should be a complete plan for making the startup as successful with calculating all the potential risks involved. Running a new business is kind of risky when the market all over the world is not on the high so instead of business the investor seems to be a safe option because it save us from a lot of stress and we can just focus on something that can give us peace.

Sometimes there are still many people who indicate that loans are something negative even though this happens because most of us are borrowing to meet the standard of living that is carried out but it cannot be denied that there are still good loans especially when we are doing business.

It would be great if we don't get involved in debt when we can't afford it but when the business wants to try to be enlarged and our conditions don't allow it then it's not a problem for us to borrow with the purpose and progress that our business does it is very possible.
The important thing to realize from the start is how we do business and realize whether we have qualifications in business or not because I think this is an important thing that must be known from the start.

Most of us take out the loan for wrong reasons and it is bad there is no denying in it, but in specific to business if needed and you can see the potential to increase your revenue and profit then it is a good one because at the end of the day you are going to payback the loan only from the profit that you are going to make and you will keep the remaining profits for yourself so this is what people say how we make money using debt.

But if someone does that to buy a new car or residental house then it is not a wise move.

[justdimin]

Sometimes there are still many people who indicate that loans are something negative even though this happens because most of us are borrowing to meet the standard of living that is carried out but it cannot be denied that there are still good loans especially when we are doing business.

It would be great if we don't get involved in debt when we can't afford it but when the business wants to try to be enlarged and our conditions don't allow it then it's not a problem for us to borrow with the purpose and progress that our business does it is very possible.
The important thing to realize from the start is how we do business and realize whether we have qualifications in business or not because I think this is an important thing that must be known from the start.

Loans are not bad if you use it for genuine purpose. If you are just taking out a loan and not actually expanding your businees is when you are going to end up in big trouble because you will hardly be able to repay the loan and this will even ruin your credit score. Business loan usually comes with a credit line and we can draw only the required amount which helps expand the business while retaining the interest on used capital. These loans are really helpful for small business because they can expand their operations much faster.

I will never say these loans and bad but you just need to be well-informed about how to use the loan money so you can expand the operations and generate a stable cash flow which can be used to repay the loan.

[odunybiz]

OP, no offense but I don't think this is helpful advice. Because what you provide is basic business knowledge and it is not too difficult to find on the internet. Even people who have never started a business know these things.

If you want to give business advice, you need to be an entrepreneur first, running a business and the advice should be drawn from your own business career. It is really meaningful and helpful for those who are planning to start a business.

Experience can indeed be a very valuable lesson.

The OP's intention is for us to discuss this, and I see several of our friends also continuing to share their own experiences and advice so we can all learn together.

I once started a small business, and while I've minimized all the mistakes, as the OP stated, there are indeed many problems that arise without us predicting them. The most important thing is how we resolve these small problems so they don't have a major impact. Managing our emotions is quite important.

I am also an entrepreneur. The little I had edited was based on the experience I had in my business. There are more than 10 key points in the sited reference but I only picked those ones that have directly or indirectly affected affected my business.This are fact that one should know to help in establishing a business but this only doesn't ascertain the success of the business. There are lot to business establishment and business success.