10 Things You Must NOT Do When Starting a Business

10 Things You Must NOT Do When Starting a Business


10 things you should not do when starting
a business The thought of working for yourself and starting
something new can be thrilling and incredibly exciting. Your enthusiasm is high and all you can think
of right now is how to dive deep and get this business moving, until you hit a snag you
didn’t see coming. We put down our ideas and put a few documents
in place, but we can’t explain what went wrong with our theories and plans. It goes to show that running a business often
requires much more than a bunch of ideas put together. Certain factors determine whether our businesses
will do well or not. However, it’s quite unfortunate that we sometimes
ignore these things because we’re just so anxious to start our own business. In this video, we’ll be sharing with you
10 things you should not do when starting a business. If you’re new here, consider subscribing
so that you won’t miss other interesting videos like this. 1. Quit wasting too much time on a business plan In a bid to make our business as perfect as
possible, we sometimes end up wasting a great deal of time writing a business plan. Do not get this all wrong though. It is absolutely important to have a structure
for your idea when starting your company and, to also make your vision presentable and tangible. However, do not dedicate your entire time
trying to prepare the perfect business plan when you can start growing the business already. Alain Hanover, a Bentley professor, a veteran
entrepreneur and investor advises that you shouldn’t waste months and months honing your
business plan as it is a huge waste of your time and resources since you will likely toss
it out or rework it completely after your first business meeting. Instead, he suggests using a simple 10-page
slide deck that covers all the important bases, including your: Market, Team, Advisors, Competition,
Existing problem, Solution to the problem, Product or brand development strategy, Projected
traction, Early financials and Needs. 2. Do not skip market research Do not start a business without doing research
on the viability of the idea or gauging the market. Failure to do thorough market research will
cause the business to collapse eventually because the business idea may not be a viable
one after all. Though market research is sometimes not dependable
because people may not know what they want, market research plus your insight and gut
can do some miracles. 3. Do not be scared to fail Failure shouldn’t always mean negativity as
you can choose to see it as a teacher. It isn’t just the things that go right that
can teach us lessons. While it is important to minimize the possibilities
or chances of failing, be opened to learn from your mistakes. Do not be rigid with your plans and strategies. Implement whatever you have learnt and move
on. 4. Do not hire family and friends in place of
qualified employees It can be an advantage to bring people that
you know on board but only if they have the needed skills to sky-rocket your business. Hanover says, “The people that you choose
to hire and bring into your organization are the lifeblood of everything, from selling
your product to delivering your service to creating the actual culture. Every person that you hire is important, especially
in critical stages for your company.” So, rather than cut cost by trying to get
family and friends who are likely going to work for you for free, go for qualified talents
that will do a good job. 5. Do not try to do it all alone It’s tempting to want to do everything alone
so that no one shares in your company’s success when the time comes, but you cannot always
do it all by yourself. You can talk to people about what you are
doing so you can get ideas about what is wrong and right with you. You can also get people to intern with you
or partner with you, in some cases. 6. Do not go about asking everyone you know for
capital Well, for small projects that involves asking
family and friends for funds, asking around might not be a bad idea. For bigger projects, however, you might want
to reconsider. Hanover explains it this way, “You don’t
want to muddy your investor group if you don’t have to. Some venture capitalists want to be the first
ones in the door, and shopping your opportunity around may make you used goods. Once you shop the deal, word gets out. The investment community is very small.” You could hurt your chances by going to the
wrong investors or too many of them. 7. Do not start a product business Product development requires time and a lot
of money to start. Which means that if it does not go well, you
may end up losing everything you invested. You can start a service company to increase
your chances of steady cash flow. Once you have this cash flow, you can then
invest money in a product company as it is easier to scale it up than a service company. 8. Do not ignore the economics of the business Most entrepreneurs focus on certain business
metrics like sales, company size, and the likes, leaving out what’s important; profit. At the end of the day, volume without profit
means loss. Which is why most businesses end up failing. It is paramount as an entrepreneur to understand
how to make money while balancing all other terms. 9. Do not ignore the necessary paper works Ellen Fitzgerald, founder of Boston’s Mother
Juice food truck says, “When you’re starting a company, you’re working with a friend, and
you just have an idea. It seems crazy to go to a lawyer and ask them
to put that in writing for you, but those documents are so important should anything
happen with your partnership.” Take the documentation of your ownership stake
and your partnerships seriously and don’t overlook the importance of creating your legal
framework from the beginning. 10. Do not forget to pay yourself I know as entrepreneurs, we all have the tendency
to put every dime we have into our businesses and not bother about our personal needs, but
paying yourself is important for the success of your business. Fitzgerald advises that “Founder salaries
need to be a part of your business plan. A lot of small businesses- and I know I thought
the same way- don’t want to take money out the business because your business is you. It’s not a real business if you can’t afford
to pay yourself. It doesn’t look good in the eyes of the investors
to opt out of paying yourself, even in the beginning.” So, like you will get paid working for others,
get paid working for yourself as well. Thank you very much for watching our videos. We’ll like to give you another interesting
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