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Common Mistakes of Start Ups

According to Forbes Magazine, 9 out of 10 start ups fails! Other studies, such as the Harvard Business Study, are more optimistic in stating that only 50 percent fail in the first year. They all agree, however, that making it past five years is a milestones that may mean you are solid enough to survive the horrible stats about start up survival. What are the stumbling blocks that make new businesses so risky? Well, honestly the list could go on forever, but here are a few of the more common mistakes of starting your own business:

 

  • Cash Problems – One of the largest mistakes new owners have in launching a successful small business is the cash issue. Running out of cash can have many causes including not understanding the market, losing investors, pricing problems, or financing issues.
  • Motivation – Starting a new company is possibly one of the most time-consuming and stressful events for any human being. Keeping the motivation going can be difficult, especially if key leadership dwindles or is also not motivated.
  • Product Problems – Many new companies rely on one or two services or products. If one of those fails, so does the company. New businesses need to broaden their offerings and target larger audiences to stay afloat.
  • Lack of Support – New businesses need employees and leadership personnel that are versatile and can handle many roles at once. Young companies many times do not have the cash flow to hire such individuals.
  • Failure to Handle Feedback – In our society and social media-crazed land, feedback on poor job performance is almost instantaneous. With numerous review sites, your company can be ruined with negative reviews or the inability to react swiftly to feedback from clients and employees.

 

There are numerous reasons why good companies go under. Continue to read our blog as we follow these reasons over the next few months.

About Mike Sperling

Mike is the Founder and Director of Sperling Interactive. Mike’s keen eye for photography, extensive technology skills and innovative marketing ideas make Mike a leader in the website design and management field. He is proficient in html, css, php, javascript, MySQL and the Adobe Design Suite. Before founding Sperling Interactive, Mike worked his way up from staff photographer at the Eagle Tribune Publishing Company to the lead operator and manager of multiple websites for daily and weekly publications. Known as the “media guru”, Mike gathered years of experience before making the leap to start his own business. He graduated from Rochester Institute of Technology with a BFA in Photojournalism and a minor in Mass Communications. When Mike is not meeting with clients or designing new websites he enjoys spending time with his wife, Jodi, daughter Zoey, and son Camden. Mike enjoys hiking, geocaching, traveling, movies, the Baltimore Orioles & Ravens.