5 Common Mistakes New Entrepreneurs Make (And How to Avoid Them)

Starting a new business can be an exciting but challenging experience. As a new entrepreneur, it's essential to be aware of the common mistakes that can hinder your success. By understanding these mistakes and taking steps to avoid them, you can set your business up for success and achieve your goals.

Mistake #1: Lack of Planning

One of the most significant mistakes new entrepreneurs make is failing to create a comprehensive business plan. A business plan outlines your business's mission, goals, target market, financial projections, and marketing strategy. Without a plan, you may struggle to make informed decisions and stay on track.

• Solution: Create a detailed business plan that outlines your business's goals, target market, financial projections, and marketing strategy. Review and update your plan regularly to ensure you're on track. For more information on creating a business plan, visit the Canada Business Network's website: canadabusiness.ca.

Mistake #2: Insufficient Funding

Many new businesses fail due to insufficient funding. Starting a business can be costly, and it's essential to have a solid financial plan in place.

• Solution: Determine your startup costs and create a financial plan that outlines your funding needs. Consider seeking funding from investors, loans, or grants. The Business Development Bank of Canada (BDC) offers financing options and resources for entrepreneurs: bdc.ca.

Mistake #3: Poor Time Management

As a new entrepreneur, you'll wear many hats, from CEO to marketing manager to accountant. Poor time management can lead to burnout and decreased productivity.

• Solution: Prioritize your tasks, focus on high-leverage activities, and delegate tasks when possible. Use time-tracking tools like Toggl or Harvest to stay organized and on track.

Mistake #4: Inadequate Marketing

Many new businesses struggle to attract customers due to inadequate marketing. A solid marketing strategy is essential to reaching your target audience and driving sales.

• Solution: Develop a marketing strategy that outlines your target audience, marketing channels, and budget. Use social media, content marketing, and other tactics to reach your target audience. Consider taking online courses or attending workshops to improve your marketing skills.

Mistake #5: Failure to Adapt

The business landscape is constantly changing, and new entrepreneurs must be adaptable to succeed. Failure to adapt to changes in the market, industry, or economy can lead to stagnation and decline.

• Solution: Stay up-to-date with industry trends, monitor your competition, and be willing to pivot your business strategy if necessary. Attend industry events, read industry publications, and join online forums to stay informed.

Conclusion

Starting a new business can be challenging, but by avoiding common mistakes, you can set yourself up for success. By creating a comprehensive business plan, securing sufficient funding, managing your time effectively, developing a solid marketing strategy, and adapting to changes, you can build a thriving business that achieves your goals.

Take the first step towards building a successful business today. Download our free business plan template and start creating your roadmap to success. For more resources and support, visit our website or contact us to learn more about our business services.

How To Emerge As A Successful New Entrepreneur During A Global Pandemic

 

 

Across the globe, nations are reopening the economies after the initial wave of shutdowns to mitigate the spread of COVID-19. The pandemic has been a “black swan” disruption event for global economies - forcing business owners to reevaluate how they manage, lead, and drive change in a crisis.

As businesses slowly begin to reopen their doors and start welcoming customers back, a new class of pandemic-hardened entrepreneurs is emerging from the dust. As some business owners focus on how to help their firms and companies recover from a market-shifting shutdown, real entrepreneurs are putting in the time to develop the skills necessary to emerge more successful and competitive than ever.

The Pandemic-Led Entrepreneurial Advantage

Common sense would try and tell you that events such as a global pandemic would be a death sentence for most entrepreneurs. Yet history has shown us that creative and crafty entrepreneurs can pivot and adapt to the winds of change even during the worst economic moments.

The pandemic has already altered the market landscape forever. But for those who have been paying close attention to consumer trends, the landscape has already been in flux. In business operations, three significant elements have been driving businesses forward:

●     Seismic Shifts in Market Globalization

●     The Increase Of Knowledge Work

●     Increased Technology Solutions For Automation

Simultaneously, consumer demographic behaviors are also changing, as Millenials and Gen Z continues to emerge into yet another financial upheaval in their history. As an entrepreneur and business owner, these consumers will be looking for companies to support that have their interests at heart. 

With these ideas in mind, here are four tips for emerging from the pandemic as an entrepreneur with a competitive edge:

Locate & Dominate A New Market

The shutdown of the entire economy has thrown the whole system into disarray. Companies that were thriving on December 31, 2019, may no longer hold influence in September 2020. Many of those market leaders may no longer exist, as the virus has quickly snuffed out their business.

As an entrepreneur, you have a unique opportunity to rise in the place of companies or brands that have lost their control on a particular market. See a need that others are failing to meet? Step up and create a solution, and you will quickly take your place as an industry leader in no time.

Increase Your Brand’s Reputation

When it comes to successful branding, there is always a bit of mystery involved in going viral. However, the pandemic economy has created the perfect conditions for rising above the noise of other brands struggling to adapt.

Take the time to build your brand’s reputation during this short period of pause, and when the world reemerges, you will find yourself ready to invite new customers into your business. Start creating connections with clients now, and you can watch your brand recognition soar post-pandemic.

Introduce A New Technological Solution

Have you had a great idea in your incubator, but no chance to introduce it to the world? The pandemic has allowed many entrepreneurs an empty stage for introducing their next great technological solution. Disruptions such as global pandemics can help bring to light solutions to problems that have only recently arrived. Consider the popularity of ride-sharing-turned-food-delivery.

By merely switching services to adapt to the changing market need, an entrepreneur can create a winning product where no opportunity was before. Get creative - the most world-changing technological advances were birthed from economic shutdowns!

Boost Customer Loyalty

As the market changes, one element remains the same: customer loyalty and appreciation hold an incredibly influential business dynamic. As unrest and public health continue to fill 24/7 news headlines, consumers are looking for ways to find hope in a chaotic world.

As an entrepreneur, you have a unique opportunity to bring influence to the consumer marketplace with ideas that not only generate needed products and services but positively engage with social issues. Consumers who see that a business or brand is taking a stand for the greater good are willing to pay a higher premium to be aligned with those services.

A great way to find an edge in the pandemic economy is to invest in customer loyalty through creative initiatives and community engagement. Find unique opportunities to serve those who are helping others, and invite your customers to join you for the journey. You will soon see the rewards that come from being an entrepreneur concerned with more than the bottom line.

Become A Post-Pandemic Entrepreneur

Many entrepreneurs will be slow to start a new venture or increase their current business operations during a difficult economic moment. However, those willing to boldly step out in new ways and grasp opportunities as they arise will find a post-pandemic market ripe for harvest.

The future of the global economy is as unknown as the coronavirus itself. Nobody is quite sure what business methods of the past will fade with the virus, and what innovations will lead the way in the new market. For those who are ready to turn difficulty into opportunity, the changes wrought by the COVID-19 pandemic will provide limitless chances for entrepreneurial success. Will you rise to the occasion?

Get started! Register a business online or get incorporated in Canada!

Starting a Business During The COVID-19 Pandemic

 

Think that a global pandemic is the worst possible time to start your dream business? Think again - the opportunity may never be better to capture the momentum of a market in flux.

For many business owners worldwide, the COVID-19 pandemic has been one of the most unexpected events they have ever encountered. From sudden economic shutdowns to government-mandated restrictions on patron numbers and health code requirements, not a single element of “business as usual” has remained “usual.”

The pandemic’s impact has been even more unbelievable for businesses and startups just getting their feet under them when the pandemic struck. Whether they were only signing paperwork for a loan or moving equipment into their new locations, the hopes and dreams of many entrepreneurs in 2019 were quickly dashed when 2020 reared its ugly head.

For all its havoc, are there any silver linings for those just starting their businesses amid the global pandemic? The plunging markets, the increased health concerns, and rising unemployment could offer more than enough reasons to pull the plug on any new business venture - at least until the pandemic subsides. However, could there be hidden pearls of success waiting to be uncovered for entrepreneurs who are willing to push ahead and open their business doors during the pandemic?

There are many ways that your business or restaurant can begin to pivot and optimize adaptability to function in the post-pandemic economy. Below are four examples to consider leading your company into the pandemic economy:

1. Hello, Reduced Overhead Costs!

We get it - opening your new business during a global pandemic may seem like an insane decision. If you are looking for a silver lining amid the chaos, consider the reality that the pandemic has brought to companies around the world - decreased overhead costs.

As consumers move to online shopping, and team members increasingly work from home, businesses have quickly discovered that many of their daily operations can be done just as effectively from home. Unfortunately, this has left large, expensive buildings to sit empty and rack up costly utility bills.  

As a new business, how can you take advantage of new business practices to reduce your overhead budget? Can your team members work from home to help launch the business? Do you need to purchase a lease on a brick-and-mortar location after all? Do you need to spend money on physical business cards, paper supplies, and more?

You will be surprised how much margin you can regain in your startup budget by moving away from the traditional cost of starting a business in a physical location. Don’t fear the unknown that comes with launching a business in a digital-only format. Should the time come that consumers start emerging and returning to physical locations, you will be primed to move in that direction. However, don’t be surprised if you never do. The pandemic is changing many traditional ways of doing business - and the need to visit companies in-person may fall victim to the effects of digital convenience.  

2. Reach Your Target Audience Through Online Advertising

Just because doors are closed doesn’t mean you can reach your target audience with news and announcements about your new business opening. In fact, the pandemic’s impact on consumer behavior may give your new business an edge that few have ever enjoyed.  

Instead of depending on in-person sales and engagement, throw your marketing budget toward online engagement through a robust digital marketing strategy. By hosting live streams that showcase your new business mission, values, and products, you can reach more potential customers than ever before.

A benefit of launching your new business through an online medium is the ability to reach your audience on their terms. Instead of inviting them to visit your business location physically, simply show up on their smart devices through an integrated advertising plan. With a robust digital presence, you can potentially open your brand to more customers than you expect. Social distancing doesn’t mean you have to postpone your business launch. It may make reaching your customers more manageable than ever before.

3. Take Advantage Of New Technology

The world of COVID-19 has given way to incredibly significant new technological advances. This shouldn’t be that surprising - most innovations in the business world have come from a crisis. By adopting new technologies early in your business startup phase, you can enjoy the benefits of being on the front-end of exciting innovations that will lead the businesses of the future.

Consider the power of analytics-driven automation and applied intelligence to your business from the beginning. These solutions can help you choose the most price-effective products to help you engage your customers in new ways online. While other companies and businesses attempt to adapt their large-scale operations to these new technologies, by implementing them from the start, you can race ahead of the pack - before you even begin building your customer base.

Smart analytics is a great way to lead your digital marketing above and beyond in a world where online sales and engagement are taking precedence. As you move forward in opening your new business during the time of COVID-19, make sure to take advantage of all possible technological options to help you build brand awareness quickly.

Ready To Start Your New Business?

As you can see, there are many reasons to consider launching your business during a global pandemic. There are new, emerging technologies available that will allow you to reach customers like never before. Reduced overhead costs and the ability to conduct business digitally will open up new avenues of revenue to help you focus on providing the best products and services. Don’t be afraid to be bold - there is much to gain in the post-pandemic economy for those entrepreneurs who are daring enough to launch their passions!

Get started! Register a business online or get incorporated in Canada!