GOBankingRates works with many financial advertisers to showcase their products and services to our audiences.
These brands compensate us to advertise their products in ads across our site.
This compensation may impact how and where products appear on this site.
Commitment to Our Readers
GOBankingRates' editorial team is committed to bringing you unbiased reviews and information.
you’re free to read more about oureditorial guidelinesand our products and servicesreview methodology.
In fact, according to data from the 2024U.S.
Bureau of Labor Statistics, almost half of all businesses fail within the first five years.
And nowadays, with increased digitization and soaring prices, even more can go awry.
So what can new entrepreneurs do to avoid becoming just another statistic?
To answer this question, GOBankingRates went right to the source: seasoned entrepreneurs.
Here are some of the pitfallsaspiring entrepreneurs ought to be mindful of when starting a business this year.
But, she cautioned, spreading oneself too thin leads to burnout, wasted resources and mediocre results.
Instead, master the basics before scaling.
In the beginning, remember quality over quantity.
Remember, automation is a matter of scale, Lim said.
As a new business owner, you have to gain a solid footing first.
Otherwise, you could be wasting a lot of money on a poor business model.
Lim recommended first focusing on low-cost digital marketing and growing a local audience.
Who are your customers?
What do they need?
Whats the competition like?
Stott recommended using every tool available to conduct research and acquire real-time data.
This could include industry reports, focus groups and Google trends.
When Target opened stores in Canada, it failed to fully understand the Canadian market, perMedium.
All its Canadian stores shuttered two years later.
Always validate a business idea prior to investing too much time and money.
There is one word of caution, however.
As Rytis Lauris, CEO and co-founder ofOmnisend, explained, perfectionism has no place in entrepreneurship.
Its okay to observe your competitors … but once youre done with necessary research, act.
Musumeci also discouraged overspending on shiny marketing tools and costly systems, which are unnecessary in early stages.
In other words, budget for inflation and avoid extraneous costs.
This can include unique offerings, socials and websites that are visually compelling, and/or a gripping brand story.
This tactic not only grabs attention but keeps it.
Tapping into consumers emotions creates brand loyalty and, in return, huge profit margins.
Nowadays, fraudsters have become plentiful and sophisticated.
And adapting is crucial.
New technologies will allow business owners to reach broader markets and employ greater automation, Johnston said.
However, the rapid dissemination of technology and ideas can lead to rapidly changing tastes and needs.
Johnston encouraged keeping an eye on the future and not being afraid to pivot or adapt as necessary.
The most successful entrepreneurs are those with the flexibility to adapt to constant change.
No one wants to find out they have a supply chain issue after their business has launched.
Its better to hammer out the nuts and bolts ahead of time.
More From GOBankingRates
Share This Article:
