7 mistakes you want to avoid when starting your own business

Although starting your own business is both fun and rewarding, as any self-employed person can attest, it is not always a bed of roses. Like any living creature, a business has needs that must be met to ensure its growth. And along the way to success, you will make some mistakes.

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Don't be afraid of mistakes

Failure is a natural part of entrepreneurial life, especially at the beginning of your career. By making mistakes and learning from them, you can develop both yourself and your business. Therefore, it is important not to be afraid of failure, but at the same time you should be wary of making the same mistakes several times.

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While you should always look at your failures in a positive light, there are some mistakes that are particularly common among start-ups. By avoiding them, startups can increase their chances of success faster. Below we list seven common startup mistakes and how you can avoid them.

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Weak business idea

The most important step towards successful entrepreneurship is to have a unique and well thought-out business idea. Unfortunately, many companies choose to invest in a business idea that does not have as much potential as they think.

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Therefore, it is important to be clear about what you are selling, to whom and in what way. In particular, examine whether your idea already exists and, if so, how you can improve it to stand out. Don't forget to keep a close eye on your main competitors.

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One tip is to conduct a survey among family and friends before you decide to turn your idea into reality. This way you can get valuable feedback and even ideas for improvements or changes.

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Starting your own business for the wrong reasons

In difficult times with rising unemployment and few jobs, many people are thinking about starting their own business. A common misconception is that entrepreneurship is all about convenience, such as being your own boss and making money on the go.

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Few people are aware of the hard work that running a business requires. It is not uncommon for self-employed workers to work more hours than full-time employees, especially in the beginning. In addition, starting a profitable business takes time and requires patience - something not many people expect.

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If you want to start your own business, make sure you know what is actually required of you, both in the short and long term.

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Economic shortcomings

You will need money to make money, especially in the start-up phase of your business. Many new entrepreneurs think that the income of the business will roll in immediately, but of course this is not the case. It takes time to build up a stable turnover.

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In other words, during the start-up phase, income will be low and expenditure high. After all, this is when you need to make investments in everything from websites and equipment to premises and possibly employees.

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For this reason, it is important that you plan your business budget carefully in advance. How much start-up capital will you need to get by during the start-up period? When will the business start making money? How big will the expenses be?

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If you currently have a job, it may be a good idea to keep it or reduce your hours while you start your business. This will give you financial security, which is particularly important in the start-up phase as start-ups often make a loss in the first few years.

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No business plan

It is not uncommon for entrepreneurs to think that a good business idea is enough to run a business. While the business idea is important, it is nothing without a thorough business plan.

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A business plan should include a detailed description of your idea and your business objectives. It should also include information on everything from competitors and marketing strategy to budget and financing.

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With the help of the business plan, you can easily plan a strategy to develop your business in the desired direction. It can also help you in meetings with potential investors or in negotiations with banks for business loans.

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Read more about business loans and how they can help your business grow at Lånjakt.se.

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Weak digital profile

Digital presence is increasingly important in our digitalized society. Yet studies, such as this one by Clutch, show that only 64% of small businesses currently have a website. This means that many businesses are actually losing customers due to a weak digital profile.

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Whatever your industry, a website is now a must. On the one hand, a website opens up completely new marketing options, such as search engine optimization, while at the same time it can improve your confidence with potential customers.

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You should also be active on social platforms such as Instagram and Facebook, given the large audience there. The more active you are online, the more likely you are to reach the right audience and build a strong brand.

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Fear of change

A common phenomenon among entrepreneurs is that they remain stuck in old patterns, whether things are going well or not. In other words, few choose to develop their business further, even though this can affect profitability.

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If the company is doing well, think about how it can do better. If the results are not as expected, evaluate and reflect to find opportunities for improvement. Maybe you need to change direction? Or maybe it's time to invest in external expertise?

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As an entrepreneur, you should never be afraid of change. Dare to question old patterns and find new opportunities.

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Want to do everything yourself

One of the most common mistakes among self-employed people and entrepreneurs is that they always try to do everything themselves. A common reason for this is because "they do it best themselves".

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Apart from the fact that this attitude can create psychological stress - which in turn can lead to poor performance - it can also slow down the company's development.

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Having the courage to ask for help is important, not only for your own sake, but also for your business. For example, by hiring external consultants with expertise in specific areas, you can reduce the workload effectively. At the same time, you will stimulate business growth as the work will be done faster.

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Don't be afraid to consult people around you either. This is where a wide network can be particularly valuable.

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Executive summary

Running a business is a multifaceted process and sometimes you make mistakes. Never be afraid to fail, but make sure not to repeat past mistakes several times. If you do, it is a sign that self-employment may not be for you.