5 Major Mistakes to Avoid When Starting a Business, According to Entrepreneur Corey Shader

Major Mistakes to Avoid When Starting a Business, According to Entrepreneur Corey Shader

No matter how much business experience you have, you’re likely to face problems at some stage of your new business. Entrepreneur Corey Shader says that bad practices and mistakes unfortunately accompany many business startups, and they can be their undoing.

It’s important to understand some of the most common mistakes startups make so that you can avoid falling prey to those same pitfalls. Here are five major mistakes to avoid when starting a business.

1. Not Having a Business Plan

The famous saying is that if you fail to plan, then you’re planning to fail. Every business, no matter the industry or size, needs to have a well-thought-out business plan.

This will help guide the business from the ground level all the way through growth stages and more. This plan helps keep you focused on the goal and can serve as the blueprint for success as you bring people on board to your team.

2. Not Having Enough Money

A leading reason why many new businesses fail is that they aren’t properly capitalized. You never really know what’s going to come your way in business, so it’s always best to have more money on hand than you think you need.

In addition to over-planning when it comes to startup capital, it’s also important to set money aside over time for a business “rainy day fund.” This will help you weather unexpected storms and stay afloat without needing to take desperate measures that can sink you.

3. Not Knowing Your Market

You might have a great idea, but is it going to be successful? A lot of that will depend on how you separate yourself from the competition, but that’s next to impossible if you don’t even know the competition.

All business startups should go through an analysis stage where they take a look at the current market to see what’s out there. Then, you can create differentiating factors that will serve as your marketing pitch points.

Going hand-in-hand with knowing the market is knowing your target customer. Being able to clearly define who your targets are will help guide your process.

4. Not Asking for Help

Many entrepreneurs think they’re superheroes who can do it all themselves. Successful entrepreneurs will surround themselves with talented people at all levels — as advisors, employees, partners and a pair of listening ears.

You never have to go it alone in business. Attract and hire talented individuals who can help you realize your business dreams.

5. Not Planning Expansions

Expansion is key if you want to build a lasting business. Corey Shader points out, though, that ill-timed or poorly-planned expansion can ruin a business overnight.

Before taking on a new project, launching a new product line or opening another location, you need to make sure that you have sufficient resources to do so. This includes the proper funding, the proper staffing and the proper planning so nothing in your core business gets left behind when you embark on the expansion.

About Corey Shader

Corey Shader is a self-made entrepreneur, consultant, investor, real estate developer, and founder of several companies, notably Insurance Pipeline. Operating primarily out of Ft. Lauderdale, Corey’s endeavors span across the nation, consulting for start-ups, and sitting on the board of digital media and senior healthcare agencies. As a consultant, Corey helps young businesses develop sales funnels and maximize profitability. Shader takes pride in challenging others to push themselves to be their very best — he believes in constant self-improvement, inspiring others through sharing his own life experiences.

Previous articleHow Jeff Bezos Made His Billions: A Guide To Self-Employment
Next articleWhy a sole trader could benefit from the use of a virtual phone system
Dustin Garza has made a fortune investing in the stock market, as well as making small investments in startup companies that end up flourishing later on. Dustin is always happy to share his investment and business tips and comment on the state of play from a variety of interesting angles.