5 Startup Business Mistakes!

So you decide to startup a business. You have an idea. Let's say you want to be a carpenter. You print some brochures, some business cards, and take out an ad in the Yellow Pages. You pay $600 for a website and a domain name that tells everyone about your amazing credentials and experience. You distribute your fliers at a local grocery store. And then you wait. And wait. And wait...

Nothing happens. But, that's what everyone starting a business does, isn’t it? Print out some brochures, tell everyone how great you are, and wait for the money to roll in.

Stop right there. You have just made several of the top 5 startup mistakes entrepreneurs make when starting a business.

Startup Mistake # 1: First, being a "carpenter" is too general. There are a million carpenters in the world, but the only successful ones have something to concentrate on. Wood carving, house renovation, specialized pieces. Like the old saying goes, "Jack of all trades, master of none."

Startup Mistake # 2: If you fail to plan, you plan to fail. An idea is not a business plan, or a marketing plan, or even just a goal. It is simply an idea. Although the planning process may seem long and tedious now, it will benefit you more than you could imagine in the future. For example, when you are seeking funding, when you are joining an association of professionals, when your goals change, when your business changes, or if you take on a partner or investor. Your plan should guide you, but not constrain you. If something in your plan doesn't fit just right, change it. Your business plan will never have a final draft.

Startup Mistake # 3: Brochures and business cards are garbage to startup businesses! You will spend far more producing them than they will produce for you. Ignoring the high cost of printing these materials, and the costs associated in designing them if you aren't proficient yourself, most startup businesses change too quickly for these materials to be effective for more than a short period, sometimes as little as days.

If it costs $1000 to print these the first time, and $1000 to design them the first time, imagine how much you will pay if your brochures beat statistics and last two months. If alterations to design cost $500, it costs $1500 every time your business changes. If your business changes every two months, you can expect to spend at least $9000 that year on brochures and business cards. Yes, that is nine thousand dollars in lost revenue, over something that is less effective than graffiti. Don't waste your time, or your money, on brochures and business cards until you can keep your typical sales presentation the same for at least six months. Otherwise, for business startups, these things aren't worth the trouble.

Startup Mistake # 4: Okay, the Yellow Pages. Let's take a look in the Yellow Pages and see how many other trillions of carpenters there are. Which ones stand out? Definitely not the tiny ad in the corner. Probably not the one-liner. And as a business startup, that is all you would be able to afford. For the one or two clients per year this would bring you, it is better to wait until your marketing budget can afford to buy large, extravagant and eye-catching ads.

Startup Mistake # 5: Six hundred dollars for a website and domain name? A website and domain name before a marketing plan? This scenario is already causing headaches for those of you "in the know". Best idea for a business startup, design your own website for free if you can. Second best idea for a business startup, get a friend or relative to design it for free. Third best, pay a minimal fee for the complicated stuff and the rest can be done by yourself and a relative.

Only if no one in the world can help you, do you want to hire a professional to do the whole thing for you. And when you do, try and get it on 30 or 60 days post. That way, the new website will be generating money for you before you pay. If you do pay upfront, and can't get around it, ask if they do free updates. You are guaranteed to change a thing or two, probably at least once a week as you test out your new site. If you pay $600, it had better be a good website – because your entire marketing budget just paid for it.

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