Common Mistakes to Avoid as a New Business Owner

Embarking on the journey to entrepreneurship can be one of the most exciting and freeing decisions you'll make. Whether your decision comes from passion of the industry or to release yourself from the mundane cubicle routine, you'll find yourself fully invested in every aspect of starting your business. While it can be an exciting journey, many people don't realize that entrepreneurship is romanticized - it can be more work than you'd put into your 9-5, but with proper planning, you can be successful.

According to data collected by the Commerce Institute, 5.04 million businesses were launched in the United States in 2022 - that's an astounding number. According to data collected from the Bureau of Labor Statistics, approximately 20% of small businesses fail within the first year; 30% fail by the end of the second year; 50% fail after the fifth year and 70% will fail by the end of a decade. While these numbers are shocking - this doesn't have to be your business. The reality of success in small businesses rely on several factors - read along to find out some of the common mistakes to avoid as an entrepreneur.

Not Creating or Sticking to a Budget

This may sound obvious, but you'd be surprised at the number of new entrepreneurs who do not plan their budget before making decisions; many people are winging it. Whether you're going to stock up on inventory, create a social media campaign, you need to set time aside to create an ideal budget that works for your brand. You should do your research to implement the service of software that tracks your budgets and expenses to keep you from losing your mind. Services such as Honeybook and QuickBooks are among the popular companies, but do your research to find a plan that works for you and your budget.

Not Investing in Marketing

One of the biggest mistakes that brands make is to put marketing on the back burner. In the growing sea of small businesses, marketing is essential to the success of a small business. Marketing is more than just posting content once a week and hoping for the best. There has to be a strategy implemented to reach your goals. All strategies are not one-size-fits-all: decide how you want your customer to engage with you, how they see your brand, who they are and how they speak.

You could decide to create a digital marketing campaign that informs your customers about new products/services; another campaign can be created for brand awareness, while another campaign could focus on email marketing. There are several avenues to travel on the journey to becoming a successful brand.

DIY!

At the start of your business, you may find yourself being a one man band, for several reasons. It could be that you do not yet have the resources you need to get started or funds are low - regardless of the reason, you will most likely experience a burn-out if you don't get a team on your side to keep you afloat. If you plan to find funding (grant, small business loan, etc.) remember to factor in the cost for at least one employee to help you get things rolling. Remember, it's ok to need help. If funding is not on your side, consider seeking volunteers in your community (high school students in a business program, college interns seeking college credits, etc.). No matter how small or great the task, the more hands you have on deck will help you grow!

Lack of Brand Consistency

Neglecting your brand is a costly mistake that you want to avoid. You must create a cohesive and consistent brand from the very start. Your logo, font and other branding materials will need to be well thought-out. Your brand identity will be how you gain the trust and loyalty of your target audience; they cannot build a relationship with you if they cannot recognize your brand.

To build a strong brand identity, conduct research your industry to find ways to differentiate your company from others, but not straying too far from the industry. Also search for companies in your area that could be your competitors to make sure that you avoid accidentally creating a brand that is identical to theirs.

Prematurely Announcing Launch

You're probably so excited about your next venture and want to shout it from the mountain tops! You've been working so hard to get your business started and you're about halfway there! While your excitement is understandable, don't make the costly mistake of announcing your launch or new ideas/products too soon. You have have to change/edit things in the process and there is nothing more embarrassing than having to backtrack and retract your words later. Take time to plan a reasonable timeframe to make announcements. Gibe yourself plenty of time for changes before planning announcements.

Not Listening to Customer/Peer Feedback

If you plan to have a successful business, feedback is essential. Don't let your pride cost you a failed business later. If you are in the beginning stages, seek out a mentor, a professional business advisor or peers with experience in entrepreneurialism.

Relying on Family & Friends to Support Your Business

I made this mistake in the past because I was naive and inexperienced. It not the responsibility of our friends and family to keep our businesses afloat. Although it would be nice to have their support, sometimes, you don't have what they need, want or like. They are entitled to shop elsewhere. The pressure they might feel to support you financially may be costly to them. They may not be comfortable telling you no, regardless of the personal financial burden of doing so. Also, do you really want people to support you because they feel obligated to or would you like the support to be genuine? Plan your marketing outside of your immediate circle - your target audience is out there somewhere eager to seek out your business to meet their needs and wants.

Conclusion

At Reimers Marketing Solutions (RMS), we understand the challenges of starting and growing a business. Our mission is to help entrepreneurs like you avoid these common pitfalls by providing tailored marketing strategies, branding expertise, and actionable advice that drives results. Whether you're struggling with brand consistency, marketing strategies, or just need guidance on where to start, RMS is here to support you every step of the way.

Contact Reimers Marketing Solutions today to discover how we can help you turn your entrepreneurial dreams into a thriving reality. Let’s work together to build a strong foundation for your business’s success. Your journey to entrepreneurship is just beginning—let RMS be your guide.