You read horror stories about startups all the time.
When it comes to starting a business and maintaining it, there’s a lot of things to think and worry about. How much should you spend on marketing? How much should your products or services sell for? Should you get an accountant to handle the company’s finances? Failed startups can happen for a variety of reasons, but there’s always a set of mistakes that inevitably lead to disaster. Steer clear of these common mistakes:
Not Preparing or Planning
Everybody has a great idea for a startup, but you need to prepare yourself mentally for the workload that comes with that idea. People who climb mountains and run marathons are always practicing and training for the big day, and the same applies to you. Conducting research into the market you want to operate in, setting a budget, setting goals and milestones to aim for, and learning more about your potential customers is essential if you want your business to succeed.
Going it Alone
While some people may have the drive and dedication to run a one-man business, it’s important to note that running a startup will put a lot of work and stress on your plate. Focusing on so many areas of running a business can wear you down if you’re going it alone, leading to burnout. Hiring someone and delegating tasks you struggle with to them can help your startup survive, particularly in the first frantic months.
If you’ve gotten past that part of the startup building process, you may think it’s time to hire a full team or push your marketing budget to the limit. But before you spend those initial gains on hiring staff, remember that nearly three-quarters of internet startups fail because they expanded too quickly, leaving nothing in the bank for a ‘rainy day fund’. Make sure you have enough cash squirreled away before you gamble on expanding your business.
While the horror stories of failed startups may dishearten you, it’s important to understand how essential a good accountant can be to keep your business afloat while it’s still vulnerable, and to avoid making these mistakes in the first place. NWD Accountancy has a wide range of services available for local businesses in the Darlington area.