A plan of attack is not necessary.
Although you don’t have to create a formal business plan, it is important. “People view the business plan as homework, but planning helps me — regardless of my success,” Tim Berry, chairman and author of The Plan-As-You-Go Business Plan, Palo Alto Software.
The big-format business plan may be becoming obsolete. Sujan Patel is vice president of marketing at When I Work, and founder of many SaaS startups. He says that a 20-page business plan does not have to be formalized in order to plan a business. It is important to understand your customers, who you are selling, and what price they are willing to pay for the product or service.
Also, calculate how much cash and how long it will last.
2. Too much attention to the small things.
Steve Tobak, founder of Invisor Consulting and author of Real Leaders don’t Follow: Being Extraordinary In the Age of the Entrepreneur, says that “First, you have to get your company off the ground.” This may sound obvious but new business owners can be easily distracted by all the details. This is a mistake.
Founding founders waste valuable time by getting distracted and focusing on details such as the look of your business cards or the design for your logo. Instead, focus on the tasks that will propel your business to new heights.
3. Don’t worry about money.
Don’t worry about money, but be optimistic. Tobak warns that there is a good chance your company will run out before it has any money. Tobak advises that it is important to know how much cash your company has and what your burn rate are so you can plan for getting more.
Too many business owners rush to raise funds only to find it is too late. Instead, entrepreneurs should start a financial plan. This should outline milestones and the amount of money required to achieve these goals.
4. Undervaluing the product you are selling
Set the price for your product or service at the right level to earn a profit.
After weighing the labor and material costs, Cynthia Salim, founder and CEO Citizen’s Mark for ethically-sourced professional jackets for women, decided that the product’s starting price would be $425. Salim states that the price is set at what it should be.
Patel points out, “As your business grows continue to adjust you price points.”
5. Ignoring customer service.
It’s easy for people to forget that customers are more likely to come back to your site if they had a positive experience.
Tobak states, “Ensure you have a way to interact with people who visit your site.” “Any domain, live chat, survey or email, it doesn’t matter.
You can also monitor social media sites for brand sentiment. Also, you can check Yelp reviews to see who isn’t satisfied with their experience.
6. You can give away too much, and get nothing in return.
Offering something free of charge can help you establish credibility as a seller, expert or entrepreneur. This is especially true for entrepreneurs who offer services. The cost of a product is expensive so consider offering something in return for an email address. Joel Widmer, founder of Fluxe Digital Marketing (a content-strategy company), advises that you can give a free ebook, guide, webinar, or checklist.