Starting a Business? Don't Make These 4 Fatal Mistakes

By Katherine Sazaly

A large number of startups are launched every year; however, those statistics start to look depressing when we learn that a high percentage of them fail. Here are four mistakes entrepreneurs make that cause business failure, and how to avoid making them:

1. Solving a problem that doesn’t need solving

A few things you should be thinking about before you start your business are: Who am I going to serve? What problem do these people have that needs solving? Or more simply, what gap am I filing in?

However, one of the biggest mistakes most entrepreneurs make is trying to solve a problem that doesn’t exist. In other words, they’re selling something that is either abundantly available or something people don’t really care about. Make sure you test your product with your market and use the feedback to confirm there is a need before you launch.

2. Not selecting a niche

Sometimes a business fails because the need it intends to fill is too big or general. For example, if you decide to open a business selling all kinds of jewelry, you're not really focused on selling one thing to anyone. Why? Because you aren't offering a specific solution to a specific customer.

Using a "jack-of-all-trades approach" may seem attractive because it seems like you’re targeting a larger audience; however, it’s one of the biggest mistakes you can make. Instead, focus on a niche (i.e., handmade silver jewelry by U.K designers). Believe it or not, by focusing on a smaller audience, your business will grow faster and you’ll be able to attract a larger audience.

3. Choosing a niche that’s not your passion

The problem with starting a business that serves a purpose you don’t really care about (and if you only care about making money) is that there's a good chance will end up resenting your work–and let me tell you, a new business requires A LOT of hard work.

In order to successfully start and grow a business you need to have boundless energy, the kind that comes from truly caring about a particular subject, activity, or purpose. You should also possess any skills, knowledge, or qualifications necessary for running a business in a particular niche. Eventually, your goal should be to position yourself as a thought leader and expert in your field.

4. Expecting too much too soon

If you've ever wondered if building a successful business will be harder than working a day job, let’s put your worries to rest: Yes, it will be! Launching a new business is no easy task, and it can take many years to build “an empire” of a business.

All right, you may not want an empire, but you will want a successful business that has the potential to grow. Even then, expecting too much too soon is a big mistake. Nobody becomes a success overnight; a business takes effort, energy, and time to build.

The Takeaway

While you do want to avoid making any of these mistakes, you don’t want the fear of making mistakes to be a reason to quit or to keep you from moving forward.

Remember, mistakes are part of the process. So, even if you slip, don’t take too long to get up, pick up your business, brush off the dirt, and starting walking again.