Every start-up business makes mistakes frequently. Quite a few of these are common mistakes from which every business must learn.
3 Prerequisites for Capturing Market
1. Build Your Brand
When floating a new business, one must be conversant with all the marketing strategies to build the brand name. Hiring consultants is a good idea for the same.
2. Keep Affordable Prices
Since customers are very price-conscious, one should keep affordable prices for the products and services offered so that customers don’t think twice before purchasing. Quality and quantity both must be taken into account.
3. Invest In R&D
For a product-based start-up business, investment in local R&D labs is important, since every customer wants the most advanced product. Investment in R&D can also help in getting government support.
Here are a few pitfalls to avoid:
1. Choosing a Bad Location
Business must be careful while choosing a location, as a bad location can create problems later.
Before establishing any business, one must consider various factors. Availability of all resources near your business area is important. If water, electricity etc. are not available easily it may create hindrance later on.
Also, these resources won’t be of any use if the business is not close to the markets. If any problem comes while working, markets must be near-by to get the problem fixed. It would also save time and money.
2. Launching Late
Every entrepreneur must launch its business at the right time. Launching too late will hinder the scheduled completion of the quantum of tasks a start-up faces.
Giving excuses and postponing launch can also give an opportunity to the competitors to capture a significant portion of one’s prospective customers.
3. Raising Less Capital
Another common mistake most start ups make is raise less capital in the beginning.
Every start up has only so much capital to go through the gestation period, and you don’t want your capital to peter out before the business starts making profits. So it’s better to take enough money from investors in the beginning to cushion yourself against lack of funds later on.
4. Trying to Do Everything
Entrepreneurs must be careful not to do everything themselves. Some tasks are better outsourced.
Today, everything from phone call to a large shipment of manufacturing can be outsourced. Even though business will be paying someone else, your own time and efforts can be saved and used wisely on other work areas.
Responsibilities should be spread out to vendors, distributors, and outsourcing agencies etc. as there is always a limit to what a small business can do itself.
5. Not Having The Right Infrastructure
Infrastructure is the backbone of business, and the right set-up is important for a start-up business to get established successfully. But it has been seen that entrepreneurs often start companies without taking the infrastructure issues seriously.
Not having proper plant and machinery, connections, and resources will keep the business from growing. Having a proper infrastructure also leaves a good impression on clients.