Start Your Business Magazine UK runs a feature ‘Ask the Expert’ where they referred following question to our Director D. Kadikar for his answer.
The answer was published in Start Your Business magazine of May 2014 on Page 19.
Question: What are some of the basic mistakes I can avoid as a start-up to keep my business afloat?
Answer: There are several mistakes a business can make, especially at the beginning, and unfortunately, this can mean the difference between success and failure. Below I have listed eight common mistakes new (and old) entrepreneurs can make:
A. Not considering whose problem you are solving
If you are starting a business to solve your own problem, you may not be looking at a successful business but if you solve a problem of a larger part in your community or country, you may have a successful business. Make something users want, not something you want them to have.
B. Not asking relevant questions to right people
Get help and guidance from people who know more and have been successful entrepreneurs. Brainstorm with family, friends, colleagues and mentors to avoid potential mistakes. They can cheer you up when things go wrong.
C. Avoid Losing Focus
All start-ups have limited time and resources, which is why you need to focus and prioritize.
D. Failing to Empower Employees
Empower employees through cross-functional training. This builds inter-personal appreciation and helps build better team.
E. Not Listening to Current or Prospective Customers
Always work in best interest of customers. Deliver more than you promise and your clients expect to build long-term loyalty.
F. Failing to Learn Lessons
Be a Constant Learner. Do NOT ignore technological advances in your field. If HMV and Kodak can fail, small businesses can fail easily.
G. Failing to Find a ‘Niche’
Find a niche. It is easier to reach large percentage of a niche market with a small budget. Look for expansion in areas that have synergy with your business.
H. Failing to Keep Costs Under Control
Avoid spending too much too quickly, mainly on wages and marketing costs.