Failure isn’t something any of us like to talk about. With the rise of social media, we’re conditioned to seeing feeds full of success, and brilliance – they’re hardly touched by the moments where things didn’t go quite right. But, within this melancholy lies some good news: failure is something you can prepare against, and even when it does hit, it’s something you can learn a great deal from.
We at My Business Consulting DMCC know the business landscape like the back of our hand. With many years in the consultancy industry, we have experienced both highs and lows – which have equipped us with our rounded hub of knowledge. So, let us share some trade secrets, because we want to ensure that your new business is entitled to the success it deserves.
Read on to find out how we suggest you do just that – and learn how to avoid these fatal start-up mistakes!
1. Lack of Financial Understanding
This is the biggest, and the most common, cause of failure in business start-ups. Just because the seed of the business grew in your mind it doesn’t mean that you need to be hands-on in every area of your start-up – and this advice is most prevalent when discussing your finances.
Our number one suggestion would be to get an accountant on board to deal with the nitty-gritty figures behind the scenes. This should be one of your first moves – start-ups without thorough financial plans will more often than not fail due to a lack of planning and forecasting.
The financial landscape is vast and ever-changing, so ease the transition with the help of some industry experts. At My Business Consulting DMCC, we offer an array of services from bookkeeping to accounting, so whatever your need, you’ll find a solution with us.
2. Working Hard and Not Smart
Many start-up businesses fall flat because staff are overworked, and over-ambitious. If your speciality lies in managing people, you wouldn’t be expected to take on design tasks if you were hired in someone else’s company – and it’s exactly the same in your own start-up.
Even when it’s your business in question, it doesn’t mean you have to do every single task. Overseeing and being hands-on are two very different disciplines, and you need to learn how to switch off your control in some areas of your business to benefit the whole.
Remember that even if research has been carried out thoroughly at the time, patterns can change, and trends can alter. Ensure that your staff are up-to-date on the latest trends in technology so that they can harness them to full effect. The world is constantly evolving, so your business needs to as well.
3. Hiring the Wrong Staff
This goes hand-in-hand with our last point. Start-ups can do one of two things: hire cheap staff who aren’t adequately trained or efficient in their abilities, or hire expensive staff that are over-skilled for the role.
It can be hard to strike a balance, but it’s something to keep in mind when hiring your team. Assess what your company needs, and seek the people who fill that – and just that. It’s important to source dedicated workers who will deliver in their roles – and be careful not to over-spend on wages in the beginning when you aren’t yet able to sustain that outgoing.
4. Overspending and Poor Stock Control
If you are looking for success, saving money is the number one rule in business. It’s important to not see your income as money to spend – a portion should be saved to ensure good growth. This goes together with poor stock control in trade start-ups, where companies hang on to too much stock in the beginning, which can negatively affect their cash flow.
If you would like more information on the Business Advisory Services available from My Business Consulting DMCC, contact a member of the team of experts today on +971 58 811 9981, email us at: [email protected] or visit our website www.mybusinessconsulting.ae for more helpful articles, advice and guidance.
