Creating a business is not for the weak. A phrase a lot of us have heard before, but everyone’s experience differs. A few years ago, I left my 12-year career and started a service-based agency.
Like many other founders, I had big dreams and huge visions. I also had very shiny missions and expectations. I knew that the road to success is rough and full of dangerous curves. However, sometimes knowing is not enough; you have to experience things firsthand.
When we start a business, we think we know at least the basics (such as: what, why, how, when, where, and who), but that is not the case for many founders that I know of, including myself.
It is alright not to have all the answers at the beginning, but this lack of knowledge can either delay you or make you commit serious mistakes. Let’s explore together some of these mistakes:
1. Not Having a Clear Business Model
This obviously falls under “what.” What exactly are you trying to solve? Not what you think the problem is; your target audience/customer’s problems according to their own perspectives. In order to answer the “what” question, you need to know the person who has it. Who are they? Their motives and so on. If you could figure this out early, you will save yourself a lot of struggles later. You will be able to better position your offer, do marketing, etc.
I spent too much time building before knowing exactly how my agency would make money. My obsession with the right logo design, words on the website, colors, and font, distracted me from knowing who my customers were and what they really struggled with. I just assumed that there is a problem that needs fixing and I can do that.
2. Trying to Serve Everyone
This one mistake can be the reason why we are struggling to have a clear business model. It might make a lot of sense to say that my business helps everyone with their issue. The truth is, you need to further specify whom you are targeting. This helps you better serve them and stand out as the only or the best in this field. So remember that the whole positioning game depends on this.
3. Building Too Much Before Getting Customers
This is the main reason why I think my agency business wasn’t successful. I got busy building the non-essentials and solving the wrong problems, like fonts, injected URLs, and more. By the time I was done, I realized that I didn’t know how to get my first customer.
find out more about six more ways that results in over-complicating your business.
4. Chasing Too Many Ideas at Once
I learned this the hard way; I thought I had to “diversify” and think of plans B and C even before I made the first plan work. I find the mental focus to be the most challenging thing in business nowadays because of the too many options out there. See more about this in our article: How to Stay Consistent When Motivation Disappears.
I learned that constantly switching directions and unnecessary tweaking can create the illusion of progress, then lead us to frustration as a result of a lack of real results.
5. Choosing a Business Because It Sounds Profitable
This is one of the common mistakes people make. While there is nothing wrong with pursuing a business idea that we think is going to be profitable, it is important to differentiate between what looks profitable on paper but doesn’t suit our skills, resources, or aligns with our values, and what we can truly find ourselves in.
Think of business as this long-term companion (especially if you are the operator). You don’t want to pick a shiny object only to discover later that it lost its shine.
I particularly suffered from this by building websites around niches that I am not very interested in. Even though I love writing, some forms of writing feel like trying to move a mountain. I pursued these niches, then got very exhausted and quit after a few articles only.
6. Underestimating the Importance of Distribution/Marketing
This can also be a direct result of building too many unessential parts of the business while forgetting that marketing is the most important part. Just because you have a good product or provide an excellent service doesn’t mean customers will flood your company. Without marketing and advertising, your business simply doesn’t exist.
People should be able to find you easily and fast. You have no idea how slow I was in implementing marketing as a process in my previous business. I had doubts that I had the best offer. Also, I was thinking that marketing is such an expensive business expense that I couldn’t afford. Little did I know that it is the only way I get new clients and guarantee that I continue the business.
7. Expecting Results Too Quickly
I think patience is one of the hardest tests in business. If you can’t be able to stand longer in all circumstances, you will quit at the first challenge or lack of results. You will need to make sure you have not only the mental and emotional capacity to stand longer, but also the financial resources.
It is also worth mentioning that some business models require more time, maybe months of testing before you get a return.
8. Ignoring What I Actually Enjoy Doing
I left this to the last because it can be a little debatable. Some people think it is best you do what you love. Others say: “what you love might not be profitable.” I would argue that, find a way to make what you like doing profitable. Simply because a business can make sense financially and still become miserable if you hate the day-to-day boring work.
