Every entrepreneur has their own unique story of how they got to where they are today. They've faced countless challenges and overcome them through determination, grit, and sheer willpower. However, there are a few pitfalls that every entrepreneur should be aware of and take steps to avoid. This blog post is designed to identify some of those common traps, so you can stay on track and continue building your successful business. We spoke to several industry professionals who have made success out of their entrepreneurial endeavors about what pitfalls to be aware of, and avoid when starting your business. Keep reading to learn more!
Stay Organized and Have Paperwork in Order
At the top of the list, make sure you stay organized both with your physical documents and your schedule. “The biggest pitfall to be aware of early on is a lack of organization. When you stay organized, you’re setting yourself up with a great chance of success. Have clear, concise outlines and business plans ready for potential collaborators or investors early in the game. This will not only save you stress, but put you ahead of the game by showing up more prepared than your competitors,” offered Eric Elggren, Co-Founder of Andar.
Additionally, you should have the appropriate paperwork filed with your city and state. “Make sure you have your legal documentation and filings in order before you officially launch your business. This will save tons of time and legwork convincing people you’re legitimate, for one. Secondly, you want to make sure you apply for the correct type of business license. These kinds of little mistakes can cost you a lot of time and money down the road, something that won’t fare well for your business moving
forward. Make sure you take care of these details long before you start doing any serious business,” said Rob Bartlett, CEO of WTFast.
Ask For Help
Too many think that successful entrepreneurs get where they got completely on their own. This couldn’t be further from the case. “Remember that you’re never by yourself out there. Even if you’re starting a business prospect solo, there are plenty of amazing resources you can take advantage of to get some helpful tips and advice from other business owners. You should also make sure you surround yourself with close friends and allies who you trust to bounce ideas off of. Don’t think that you have to do everything yourself, you will burn yourself out fast and lack outside perspective on how to push your business forward,” suggested Kevin Callahan, Co-Founder & CEO of Flatline Van Co.
Bringing a new perspective can help you solve complex problems you might not have been able to solve otherwise. “Outside assistance can help you solve complex issues by bringing new ideas to the table you might not have thought of before. Sometimes, we’re too wrapped up in something to see the answer clearly. That’s why it's important to have a few trusted friends you can reach out to and ask for help,” said Dan Lewis of Convoy.
Put a Team Together
Put a small team together early in the process. This will help you not only in getting more done, but coming across as more professional and put together. “Put together a close team of people you can rely on to help you out in the beginning. Even if it’s just a trusted friend or someone you know in the industry, having even one other set of eyes and ears can help you expand your way of thinking and maybe give you ideas you’d never have had otherwise. Most entrepreneurs surround themselves with a team of trusted counsel and it can make or break your decision making early in the process,” mentioned Jaymee Messler, CEO of Gaming Society.
Your team should consist of people you can trust, but aren’t too close to you. “Make sure you think critically about who you add to your team early on. You may want to hire friends or family, but this can be a tricky place to start a business from. Make sure you bring people on who you can trust, and who you feel comfortable directing,” said Daniel Khachab of Choco.
Be Smart With Money
One of the biggest ways early entrepreneurs can experience pitfall is by not being smart with their money. “The obvious mistake that many entrepreneurs make early on is, of course, money. Money from investors or initial startup funds only go so far, and it’s extremely common that new business owners will waste money on aesthetic parts of their business rather than investing it smartly. Keep things small and simple to start off, maybe one to two employees and a space you can operate out of. The cheaper you can be starting off, the bigger the climb upward you’ll take once you start seeing some gains,” concluded Marcus Hutsen, Business Development Manager of Patriot Coolers.
In addition to not spending too much of your startup money, make sure you keep good books early on. “Develop good bookkeeping habits early on. One of the biggest mistakes new business owners make is not developing a process for bookkeeping when they initially launch. Those documents can be extremely useful later on, and it only serves you to be more organized, especially when it comes to money. Even if it’s a simple process to start out, get something implemented before you launch your business. You’ll be grateful you did,” said Justin Soleimani, Co-Founder of Tumble.
Be Aware of What You Have, and What You Can Offer
You should always be confident in the service or product you’re selling. “Never, ever take your product or service for granted. It comes across as unconfident to undersell yourself, but on the other hand it can be overly confident to ask too much for your services. Know your value and avoid giving away too much for free or too little early in the game. It can be a good way to build relationships to offer perks to early clients or investors, but it’s important to retain the value of your business by asking what you deserve from your customers,” offered Michelle Hodgden, CEO of Kinoo.
Additionally, you should make sure you are honest with what your business can provide so early in your businesses’ existence. “Make sure you are fully aware of your capabilities when making deals with clients early on. If you find yourself in a situation where you are making promises that are hard to keep, or you simply can’t, you’ll end up under delivering and with a disappointed customer. Help your reputation out by being real with yourself about the expectations you can meet,” said Liza Kirsh, CMO of Dymapak.
So, if you’re just starting out as an entrepreneur, make sure you heed our advice and avoid these common pitfalls. Stay organized and keep your books in order; it may seem like a lot of extra work up front, but it will save you a lot of headache down the road. And when you need help (you will), don’t be afraid to ask for it. This is why putting together a trusted team is so important early on. When you run into issues or roadblocks, your team can help you dissolve those issues and get you moving towards the next step. Having a growth mindset is important here, because starting a business is a step by step process. The early steps of having your documentation in order and funding secured are great achievements, but only the first part in the process. From there, you'll be patient with your growth and set realistic expectations for your business. Building a successful business takes time and effort, but with the right team behind you and a few helpful tips under your belt, anything is possible.
