Common Pitfalls for New Entrepreneurs (Part 2).

Building off last month's blog post, here are more common pitfalls for new entrepreneurs (part 2) to look out, and prepare for in order to succeed and to reduce mental stressors that arise when building a business.

Being Disorganized.

Launching a company has a lot of facets, and in the beginning phases; you usually do most of the administrative work yourself. Make sure you have documented processes and organized folders where you can easily locate all accounting & finance files, entity registrations, client information, etc. As you begin to grow, this information will be important and may put you at risk if you were to be audited or enter merger & acquisition talks. You want to make sure to track every penny that goes in and out of the business from the get-go. Set up some organization and documentation that can be scaled.

Not Taking Advantage of Technology.

If you're just starting out and you're roughing it (i.e., trying to reduce all unnecessary spend and doing everything yourself), take advantage of the free tools available to you. The Google Drive suite is sufficient to get you started for free with a gmail account. Work on developing some basic Excel skills for tracking finances. Take advantage of AI for drafting communications, furthering your education, creating templates, etc.

Trying to Do Everything Yourself.

When you're first starting out, finances can be tight. But as you grow, and have a bit more wiggle room, use your dollars to free up your time. If you hate processing payroll; outsource it, if you struggle to keep track of your schedule; hire an assistant. If you keep trying to do everything yourself, you won't have time to focus on the big picture stuff that will propel you to the next level. This is where the phrase "you have to spend money to make money" comes into play.

Seeking The Wrong Investments.

A lot of us think the only way to grow is with venture capital. While that is a route you can take, I encourage trying the 4 F's policy: Family, Friends, and Fools First. See how far you can get without giving away parts of your company and succumbing to outsiders' demands, visions, and criteria. If you still feel you want to partner with an investor, make sure you find the right one. Find someone that is aligned with your vision, someone who can bring expertise to the project, or a network that will further the business's success. Don't sell out to the first bidder and don't give them too much equity because it might bite you in the long run. Figure out what you're comfortable with and what feels fair and take it from there.

Not Having a Marketing Strategy.

This one is fun, here is where you get to deploy your creativity. Once you know who your target market is, start crafting a brand to get their attention. All marketing materials and communications should be consistent with your brand. This is important because it fosters recognition, trust, and differentiation in the market, ultimately driving customer loyalty and business success.

Knowing how much money to charge for your services or products.

It's common to have an uncomfortable relationship with money and undercharge because you don't feel you're "worth that much." This is a complicated topic when starting your endeavor. Here's what I recommend:

1. See what your competitors are charging

2. Survey prospective customers within your target market asking how much they think your service or product is worth and how much they'd pay (there's a difference)

3. Consider reading You Are a Badass at Making Money by Jen Sincero to help mend your relationship with money and get you in the right headspace to make loads of it.

Giving up too soon.

Launching a business may push you to your limits. There will come a time where you think "This is too hard," "This isn't fulfilling," "I don't know if I can do this." Depending on what's bringing about these thoughts, make sure you are taking care of yourself and not losing sight of the vision you had when you started this endeavor while also balancing out the things that make you happy (outside of this venture). Once you find that balance, reassess your options.

Not having an exit strategy.

If you determine that this venture isn't going to work for you, make sure that you have your ducks in a row. Is there anyone who could potentially buy you out? Is there anything you can sell off (IP, client rosters, physical materials, etc.)? Do you have a backup plan for income? Read more about exit strategies here.

Launching and growing a business is a large endeavor. If you’d like assistance, reach out to me on A Fickle Life! We can go over:

• Creating a strategic plan to execute

• Registering your business

• Doing business sustainably for the planet

• Business acumen

• Building for scalability

• Hiring the right people

• Managing workplace relationships and expectations

• Fundraising & budgeting

• Marketing

Let’s chat.