Starting a business is not always easy. As there are so many decisions to make, the pressure can cause you to make a poor decision that can affect the performance of your business.

1. Scott Droney - Common Mistakes People Make When Starting A
Business
Starting a business is not always easy. As there are so many decisions to make, the pressure can
cause you to make a poor decision that can affect the performance of your business. Here are
certain common mistakes which business owners make.
1. Not Having a Business Plan:
Developing a strategy and having a plan to achieve objectives is critical to any organization's
success. Large or small, every business needs a plan. Many owners do not make a business plan
because they find it time-consuming and costly.
A business and finance plan includes the SWOT analysis which is very helpful for a start-up
business and without this analysis; owners will surely be operating in the dark.
2. Not Setting Goals:
Goals are how businesses achieve objectives. First, the business must develop the goals by
writing them down and giving the task to employees to achieve them. Without taking these
steps, it is difficult to achieve objectives.
Each goal should have an identified employee who is responsible for achieving it within a
defined timeline. Without setting goals, a newly established business will not be able to keep
track of its day to day operations.
3. Not doing market Research:
Market research allows businesses to highlight the existing and predict future wants of the
customers. They can then develop a product which satisfies these wants. The more the
business knows about the people it wants as its clients, the more focused and cost-effective the
marketing plan will be.
Carrying out research is time-consuming and costly, which is why new businesses refrain from
doing it. Without any research, they are not able to find their ideal customers. As a result, all
their time and money is wasted as their business collapses.

2. 4. Ignoring the Competition:
Ignoring the competition is another huge business mistake. If the market in which business is
operating is highly saturated, pricing the product above the competitor's price is not a good
idea until your product has something unique in it.
5. No Budget:
The owners do not create a business budget because of the time investment in the process.
This is why they are unable to manage their cash and fund marketing strategies. A business
budget allows owners to plan their investments so that they can spend their cash wisely.
6. Trusting Verbal Agreements:
Many owners have friendly relationships with their suppliers so they do not bother to have a
written agreement when dealings take place.
Monetary transactions should involve a written agreement because if one party backfires, the
other party must be having the proof of the deal taking place.
7. Expecting Immediate Profit:
Owners must realize that a new business takes at least two years to become profitable. Thus
they must have enough capital in the beginning because they would be spending their money,
and not making it.