A startup is always vulnerable to various internal and external factors. These factors can even lead to the closing of a startup business. As an Entrepreneur, you should keep your eyes open and avoid doing anything that can affect your newly started business. There are so many examples where a new startup failed to survive because of the mistakes done by their owners or entrepreneur. If you are planning to start a new business, be conscious about the mistakes that risk the survival of your startup.
Some of the business mistakes that can risk a startup are:
Starting a business only out of passion: It means starting a business only because you feel like starting one. It is only one of your desire to own a business, you do not have any interest or skill to run the business anyhow. Most of the people with enough economical resources can do things like that.
Borrowed Risk: Most of the people who have desired to start a business but lacks the financial resources and get dependent on the credit borrowed from someone else. Though it is fine to take little financial supports but borrowing the complete investment money from any finance provider can increase risk over your business. 100 % borrowed investment can result in the shutting down of the business if the entrepreneur fails to return the money on time.
Offering too cheap: Even if your business is a start up, do not provide or offer your products or services on throw away prices. If you will offer too cheap prices it can impact the cash inflow of the business and can result in severer losses. Though your sales may increase quickly but your profit will remain marginal or no profit and no loss situation. It can hurt your business and can affect its existence.
Poor location:The wrong selection of locations for the business can also hit you startup hard. For example, If your business offers computer related services and you have set up your business in a market location which is already filled with many similar firms then you are going to face very tough competition but if you select a location where there is a requirement of computer services firm, your business while earn good profit. While starting a business, most of the entrepreneur plan to locate the business in the main market location which hurt them back and damages the business.
Losing patience: It is one of the major mistakes committed by a startup. Most of the business does not serve profit or even breakeven point in the initial days of a business. But as an entrepreneur, you should never lose your patient so quickly. Losing patience leads to major losses and risks the existence of a firm or startup.
Launching too fast: Speedy or quick launch of a business can also ruin a business startup. Early or unplanned or partial planning of a business can damage a startup. As proper planning and arrangements are necessary for the success of a new business, launching a business without doing complete research and homework can result as a backdrop for your business.
A business startup is like a small plant, who require proper care and maintenance for its development and growth. If you want your business startup to grow and succeed try to ignore all the above mention mistakes.