Entrepreneurs tend to run into many different sets of problems when attempting to get their venture off the ground, and it seems that there is a new threat or problem at every turn.
While this process can be frustrating, there is a lot of help out there for those looking to boost a financial plan and make sure that the business is on the right track. However, there is also a fair bit of bad advice, which means that sifting through what is valuable and what isn't can prove challenging. Even worse, many entrepreneurs make the same mistakes over and over again.
With that in mind, it is worth the time to figure out which financial tips are most valuable. To help that process along, here are five common problems that often spell disaster for a startup:
1. Don't believe that growth is all that matters
One of the first things that can slip up an entrepreneur is getting their priorities mixed up. According to Inc. magazine, some people argue that running a business is all about growth. This isn't true at all, and believing so could cause the financial plan to take a very big hit. On the other hand, new ventures should be about growth and sustainability. Even if the company isn't expanding at a fast rate, investors who see that the structure is sound may still be interested.
2. Location isn't always everything
The old cliche of "location, location, location," gets thrown around quite frequently. But, buying into this could be a serious problem for entrepreneurs. Inc. magazine explained that it is still possible to succeed even if the company isn't in the ideal place. Location makes sense for retail, because certain areas get more traffic and increased customer awareness. For other companies, though, being near the "scene" isn't all it is cracked up to be. Talent is located all across the country, and less competition in one region might be a very good thing.
3. Social media isn't a marketing replacement
Now that social media has become prevalent, some entrepreneurs may think that these sites are a replacement for traditional marketing. This isn't necessarily true, the news source noted. Twitter, Facebook and the like are fantastic, but in order for the company to get noticed, it has to reach out into other platforms. This includes online advertisements, billboards, newspapers, radio and similar strategies. Casting a wide net is more effective than focusing on one aspect alone, even if it is social media.
4. Never wait to hire quality help
According to Mashable, many entrepreneurs encounter fatal flaws in their own business by ignoring the advice of those that came before. In fact, odds are someone has run into those same issues already, and that makes them ideal colleagues. For example, many business owners think they can do it alone, but a good staff can make a lot of difference.
"Some entrepreneurs think it's a luxury to have accounting, finance, or other support functions, but it's important not to be afraid of spending resources early on for administrative efficiency," Matt Salzberg, founder and CEO of Blue Apron, told Mashable. "If you don't have someone to do that for you, you'll end up spending all your time on things that aren't critical to growing your company."
5. Always remain focused
Above all else, one of the biggest problems entrepreneurs face is a loss of focus. Whether it relates to the financial plan, business banking or any other aspect, not staying on track can mean the end of the company. With that in mind, small business owners should always keep one eye on the goal, and implement effective strategies to reach that target.