5 Common Pitfalls To Starting A New Business

Reach new heights

News And Articles

Starting a New Business – 5 Common Pitfalls

Starting a New Business – 5 Common Pitfalls

Table of Contents

Dr Thommie Burger is the Founder of JTB Consulting


Starting a new business – there are several reasons why entrepreneurship is a popular choice. From being your personal boss to creating time for yourself to name a few. It’s no surprise that more and more people have selected to start their businesses. Although starting a small business is a new exciting step for every new business owner, it can also be an overwhelming and stressful experience. New business owners face many new challenges in the first years of owning a business, and it is not surprising that many companies fail during this initial period. As a new entrepreneur, it is essential to take a proactive approach to prevent potential pitfalls from increasing your chances of success. Aside from entering a new industry and not knowing how the market works, there are other common mistakes that can lead to the failure of your small business.

Here are some of the most common pitfalls to avoid as a new business owner:

#1 Poor Planning Strategy

When starting a business, it is crucial to understand the importance of a business plan and how it can contribute to the success of your business. Without having one, you may find yourself shooting blindly in the dark. It is essential to establish your business’ vision and mission. It is also vital to create a detailed analysis of specific aspects of your business, such as your financial forecasts (this should contain your budget, employee salary and other expenses). Due to the lack of proper planning and preparation, some small businesses eventually fail as early as the first few months.

#2 Inadequate Funds

One of the biggest financial mistakes you can make as a business owner is establishing your business while not having adequate funding. Since a newly-opened business will not immediately bring in a profit, money will be a necessity to support its daily operations. As a business owner, you will incur significant costs when paying for the necessary licenses and permits, equipment, supplies, employee salaries, and legal fees and taxes. Not having enough start-up funding is one of the most common reasons half of all start-up businesses fail in the first five years. To ensure the success of your business, make sure that you have enough funds that can act as a support system when your business is at its weakest point. Thus, before starting your dream business, it is advisable to assess your needs and secure an adequate amount of cash that will be able to keep your business running until it’s already providing you with stable Return on Investment.

#3 Ineffective Marketing or Promotion

In today’s fast-paced market, it is essential to keep up with the competition to avoid failure. Thus, developing an effective marketing strategy is necessary to run a successful business. With the recent advances in technology and social media, which provide effective marketing platforms, successful marketing campaigns can be launched even on a small budget. Creating a good marketing strategy will help your business reach its target audience and cater to your customers’ needs. Starting a new business is full of surprises. As a new entrepreneur, it is crucial to be aware of the peaks and troughs of the process to increase your chances of success. Managing a business, regardless of size, has its challenges.

#4 Forgetting about Social Media

There may be no denying that social media has become essential for every business. Whether it’s Twitter, Facebook, Instagram or Pinterest, the truth is that every network has validated to be an excellent conduit and has supplied tremendous benefits for businesses when it comes to increasing third-party endorsements, improved sales, and added exposure. There are now several free online social media courses designed to aid entrepreneurs build their businesses. Sites like Udemy, Khan Academy, and Cousera may be invaluable.

#5 Not Willing to Delegate

As an entrepreneur, you may feel compelled to take on all duties and micromanage every aspect of your business. This could be very difficult to manage, and you may end up making more errors than not. Sure, you want to understand the demands and intricacies of your business; however, you may want to create a work-life balance. This means you want to delegate work to your employees or, if you are a sole entrepreneur, to trusted suppliers to lighten your load and offset the worries you may have. Why try and create your own website if you don’t have the skills? Or create logo if you are not creative? Sites like Fiverr and Freelancers can provide assistance.

Established in 2006, we have successfully written hundreds of bankable and world-class Business Plans for clients across 25 countries. As South Africa’s Leading Business Plan Company, we are confident that we would be able to assist you too. Kindly note that we also offer “Investor Pitch Decks”, “Excel-based Financial Models”, and “Proposal/Tender Writing Services” in addition to our Custom Business Plan Writing Service. Please visit our Services page for more information.

We look forward to being of service to you. Please feel free to contact our Founder, Dr Thommie Burger, on +27 79 300 8984 should you have any questions. He is also available via email and LinkedIn.

JTB – Your Business Planning Partner.

Share this article…

Recent Articles

SWOT Analysis and 50 Urgent Questions to Ask (Our Free Checklist)

SWOT Analysis and 50 Urgent Questions to Ask (Our Free Checklist)

Every business owner should conduct a regular SWOT Analysis to assess the company’s strengths, weaknesses, opportunities, and threats in relation to its competition. A SWOT Analysis helps evaluate where a company stands in a competitive market and what steps need to be taken for further strategic planning, helping decision makers draw a future roadmap for the company.

Top 3 Reasons Why A Business Plan Is Essential For SMEs

Top 3 Reasons Why A Business Plan Is Essential For SMEs

For entrepreneurs, especially small businesses, a Business Plan can act as a strategic tool to make informed decisions, especially better planning decisions, and meet short- and long-term business objectives. A business plan is often referred to as a blueprint or roadmap; without it, one can still travel, but with a map, one can reach a destination much quicker and easier. Companies rely on Business Plan Writing Services to keep businesses on track for a more detailed and strategic guide. Let’s look at how having a business plan can help your business in the competitive global market.

How to Hire an Effective Business Consultant

How to Hire an Effective Business Consultant

The role of a Business Consultant is often misunderstood. Some business owners see them as snake oil salesmen only out for their own good. In this blog post, we explore what exactly a business consultant does, how they can help you and some tips on how to find the right one for you.

What we do.

We are South Africa’s leading Business Plan Company providing world-class Professional Business Plans to local and international clients, ensuring total satisfaction at every step. With extensive industry experience and the latest market insights, our qualified team of Business Plan Consultants are the first choice of serious entrepreneurs.

Subscribe to our newsletter.

Stay informed and opt-in for our newsletter via email. We respect your privacy and we never spam.