Starting a Business?
Many people learn the hard way what works and what doesn’t. Here’s some great advice that will help us avoid common mistakes made when starting a business.
“Growing up I was surrounded by entrepreneurs. All of my uncles on my mom’s side of the family ran successful businesses, and I learned that working for yourself was a great way to improve your lifestyle.
No surprise then that I now own a few businesses of my own. But I made lots of mistakes getting started, mistakes I could’ve avoided if I’d known a few things.”
Neil Patel
Neil believes these 17 mistakes are most important to avoid:
Starting a business – tips from a pro …
1) Sell something legal.
This one seems obvious but many of us consider legal and illegal sources of income. Stick with things that are legal. It would be a real drag to lose all you made because you got busted for selling something illegal.
2) Sell something people can afford.
High ticket sales items are harder to sell. Try to find an in between where you make good profits selling more of a product that is affordable to everyone.
3) Marketing your product is essential to succeed.
You should learn the basics of Internet Marketing if you want to own an online business. Even if you are going to outsource the marketing of your product, you should know what they are going to work on and understand how their work will make a guaranteed impact. It’s best if you figure out your marketing strategy, and then outsource specific parts of it to real experts. Don’t get sucked in by a marketer that knows very little about how to market your product successfully.
4) Make payments easy.
If you want to make money then you need to make it simple for people to pay you. If it is not simple to make a payment you could lose customers frustrated about not being able to pay.
5) Solve problems that customers are facing.
The best businesses are the ones who solve problems. If we investigate a product and find that customers are having common problems then we can create something that solves that problem or redesign a product with solving all the problems in mind.
6) Keep things simple.
People want their problems solved in simple ways. Take a look at a successful product like a bicycle. It solves the problem of getting from point A to point B. It’s much faster than walking and much cheaper than a cab. It’s simple! Nearly everyone knows how to ride a bike and wishes they had one at some point in time. If our solution to a problem is to complex, hard to explain, or hard to use some people will lose interest before they find a need for it.
7) Be patient.
It may take a few years for your company or product to take off. Be patient! Many people do not see their companies thrive, nor do they earn any profits for their first couple of years in business. Be willing to keep working despite not making the money you had hoped for. It could mean the difference between success and failure.
8) Charge more.
Many people try to run their business with very low fees. They believe this will bring them a larger audience. What is more likely is that they will have more complaints about their service because there isn’t as much money put into providing a good service. Charge a little bit more, you will hear fewer complaints, and can provide better customer service. Look into what your competition is charging and price your product or service right. It may come as a surprise that people are willing to pay as much as they do.
9) Go after the big guys.
You may choose to do some work free of charge for a client that you know can introduce you to bigger clients. Keep in mind the value of experience, and go after the highest paying clients you can find. Opening doors by working for smaller clients is one way to gain experience and land a job with a bigger company. Think big, but know that every little step counts …
10) Conserve cash.
If we don’t have cash coming in our business won’t survive. If we do have cash coming in in large amounts we need to learn to save it for the business and for ourselves. Resist the urge to spend all of the cash coming in. There may come a point where things slow down and we will have to rely on money we have saved or invested to stay afloat.
11) Never stop closing.
Always be looking for clients and ways they can work with you. Even when you have a handful of clients and are making substantial profits you should always be looking to expand. You will lose clients over the years and making sure you have new clients coming in will help you combat that issue.
12) Focus.
Most of us are all over the place when we first start a business. We spread ourselves too thin. It is important to listen close to what customers are saying. We need to focus on creating value and playing on the desires of our customers. Find things in our business that ARE making us money and focus on those. Drop the things that are not making us money so that we can funnel our time and resources into making profits.
13) Always find our passion.
If you don’t love what you are doing it’s more likely you will be dissatisfied with life. F ind the things you know and love and brainstorm on how those things can help your business and earn you a profit. When you are passionate about what you do even long hours are fun.
14) Always keep learning.
A successful entrepreneur never stops learning. It can be hard work to learn new things especially if you don’t enjoy doing them. Keep in mind that you can learn from anyone regardless of who they are. Value your relationships and recognize them as learning experiences.
15) Good help costs money.
Spend time looking for good help that truly work hard and are not just in it for the money. Don’t be afraid to pay good money for good help. Think of this as an investment. Keep track of the people who work for you and monitor their performance. Generally an enthusiastic worker will perform better and their work will be more valuable.
16) Emotions rule.
Everyone makes decisions based on emotion. Some do this far less than others but each and everyone one of us is guilty of this. Figure out the emotions that your customers are feeling and figure out how you can play on your customers emotions.
17) Listen to friends and family.
Sometimes our families will be completely against our entrepreneurial efforts. Starting a successful business becomes our life. We should at least hear them out. They may be the reason why we give up on a business that will never make us profitable. On the other side of the coin family can be very supportive and help spread our business. Don’t simply dismiss what our family and friends are telling us. It could save some time and money.
It should be our desire to save time, earn more money, and provide an excellent product or service. With these 17 tips on Starting a business we can save ourselves time and earn more money.
Thinking of starting a business? Let me know in the comments below. What is your biggest concern?
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{ 17 comments… read them below or add one }
The advice to always keep learning is invaluable in this economy. Things are changing so fast, that even the most savvy are struggling to adapt. You have got to keep things moving!
It was very helpful and make a lot of sense. I’ve got a clothing business,and it’s really true that your quality and prices must be competitive. I am starting a new business now in a few days, stock market, and I’m a bit afraid and scary because its very new to me, but the people are helping you and give you 24/7 advice and help.
Thank you for this beautiful article-it gave me a lot to think about.
Wilna Kruger
South-Africa
Great tips Chris. Number 14 regarding learning, is a key rule. Everything is always changing, rarely standing still, especially in business. Great post and thanks for sharing.
Very good advice. I always like your tips, please keep it up.
One thing that really bug me that I really need some help with – that on product marketing on the web. Example, advertising an eBook. Yes, I know posting on Facebook and Twitter and others, but, strategies in using them effectively is what I am concerned with.
Thanks for the tips !
I have started my own business your tips have motivated me
Hi Chris,
Thanks for the 17 advices
my daughter and i will apply and use them
Thanks 1
james
My concern for now is to start my business on ebay but the product am about to start with is extremly costly.well,let me give it a try.
This is really timely as I have just decided to start my own online business. The advice given here will enable me to think right before making any decision with the online business. However, regarding tip no. 17, I partially agree as I have some family members who has never seen anything good regarding having and running your own business. In fact, their advise is to continue working for someone else and earning paltry income which can barely sustain you. If I rely on their advise, I will never take a step to work for myself.
Thanks for the advice, cheers.
I really good artical, having started my own online buiness selling a health care product I found the part about patience to be very true, I have learned how to get the parts, build the colloidal silver generator and build a web site and seo marketing to increase sales, I have learned so many things, it seems funny now, but you really dont know what you dont know this artical was very enlightning. Thanx Dennis
Focus and finding your passion are the simplest and at times hardest to stick with when you’re starting out. FOCUS: Following Once Course Until Successful, along with a strong passion that can help make the long hours fun (as well as get you through tough times) is a powerful combo.
That’s a great acronym: Focus. Follow one course until successful.
Most people jump around from one thing to another. But it is best to focus on one strategy and master it before jumping to the next shiny object.
Chris
Your article is an eye opener to me for I didn’t apply the rule of Good Help Costs Money in a home liquor business I am operating after I was bedridden with illness for 3 months,as a result my business suffered a loss for I did not get help from my family to help me sustain it.
Hi Walter, you can contact me maybe we can help each other
Hey Chris, Well I am 50 now been dropping ideas on the market and watched a lot of them become successful, however I held back a Few better ones for the future in hopes that I would find the money to make them happen all on my own.. Well I am 51 this year and still waiting. I know time is right now and with the right funding and people I really believe that I could affect the future do you know a group of People who are trustworthy enough to change the future with me?
You can find them via the internet. Setup a blog. Join the conversation online. You’ll start to meet the right people.
Hi Chris,
I am starting a new business using the internet to sell some stuff and there are some golden nuggets here that are worth taking on board.
Listening to your family and friends who say: It will never work! I know someone who has tried that and it failed! Is probably the coolest one but you are right, we should hear them out and listen to what they have got to say.
Hi Chris,
Great advice. The lessons I learned from making my own sites were having patience, always look for new information to support the learning curve and finally stay focused.