You came up with a brilliant business idea and couldn’t wait sharing it to the world. You’re itching to get it started and work its wonders.
And so you did.
A few days passed, you’re not getting a single customer. A month…and you’re getting all the jitters.
What went wrong?
You can call me super positivity when it comes to business as I did the same. And yes, I got heartbroken. (*sigh) It was painful emotionally and – financially (ouch!). Never mind the physical aspect as I already took that as a given when starting a business.There are many reasons why businesses fail but the most common and crucial one is choosing the wrong business to start with.Click To Tweet
We all do have our own interests, passion, and hobby. While it’s true that this could be a good start in choosing a business but it shouldn’t stop there. Our hobby, and interest are potential business convertibles. After all, who wouldn’t love making money from what you already enjoy doing, right? But the issue doesn’t come from there.
Before we get into the common pitfalls in choosing a business, if you’re itching to start a business, make sure to check out my blog on superior startup.
Ok then, what could have gone wrong?
Mistake#1 Your passion, hobby or interest doesn’t match a consumer need.
Before converting your interest, passion or hobby into a business, find out if there is sufficient demand for the product or service you are offering. Is there an untapped or uncatered market for it?
I remember when I first started in bazaars. I was offering Ready To Wear (RTW) clothes. It turned out, most of us were offering the same. In short, there were more supply than the demand. So prices are getting lower, and you probably could have guessed the impact to the profit margin.
I was in a hurry to get a space at that time as there were limited slots available. I thought it would be a business opportunity for me as I was already selling it on a part time basis (though for a different market). I didn’t think it through and just did it on impulse.
While aggressiveness is a helpful trait for an entrepreneur, it can also have its downside if not applied appropriately, which brings me to my second point.
Mistake #2 Starting a business with no adequate planning.
Finding a market opportunity for a hobby, interest or a business idea is already a plus more so if it takes advantage of your skills and experience. But it won’t guarantee success either. Know that it usually takes a while for a startup business to take off. You may have raised enough money to start your business, but have you considered your buffer fund for the periods when little or no revenues are coming in? This is just the tip of the iceberg. There are many key considerations in a business startup that you must be able to anticipate and plan.
If you’re still working but planning to start your own business and be your own boss, you need strategic steps to make it happen.
When I opened my first massage business with a partner, it was because we saw an uncatered market of military personnel. There were a number of massage businesses in the area but not enough therapists to service all customers during peak hours. When we opened, it still took us several months before we had a good number of clients a day.
Why? Because we didn’t plan enough so financial challenges were there along with many other things. We had high turnover rate of our staff and plenty of operational issues. Have we anticipated the challenges and made careful planning, we could have better managed it at the onset and we might have had a good head start.
Adequate planning helps us manage risks. It won’t make your business risk-proof, but it can save you from a bigger disaster.
While careful planning can be very helpful in any business startup, setting up your business immediately right after may not also be a good idea and will lead you to –
Mistake#3 Not able to Test your Business Idea.
Before you go in full throttle, it is best to first test your business idea to determine its viability. See how your identified market responds, get feedback and re evaluate your business. It might even give you a better perspective on your market approach and strategy.
I have started quite a number of businesses without first testing the market, thus I learned things the hard way. So when I decided to take on a new business concept for my home and skin care line, I made sure to make a market test. Not only was I able to get better and deeper insights of the market, I also learned a more strategic approach.
There is no 100% full proof of business success but with a potential market, careful planning and some tests, business viability can be much better assessed.
Starting a business is indeed exciting but at the same time overwhelming. Throughout the journey, you will meet challenges, which you will learn how to deal with, but that’s where you gain the most. So with life, isn’t it?
Get started one step at a time and you’ll soon be where you want to be.
How was you business startup experience? What mistakes have you learned?
If you havent started a business yet but want to, what business ideas do you have? Have you found a potential market yet?
Let’s engage. Leave a comment.
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