Starting a new business is an exciting venture, but it’s important to be aware of the risks involved. According to research, about 20% of new businesses fail in their first year, and about 50% fail within five years. While there are many factors that can contribute to business failure, some are more common than others. Big Mistakes New Entrepreneurs should Avoid The numbers above aren’t the only ones that are out there. Other studies reveal the new business failure rate is as high as 75% (depending on how “failure” is defined.) However, most findings agree fewer than half will survive long enough to celebrate their fifth year in business. …being an entrepreneur and founding a successful startup is difficult. It’s a long and difficult road, and you will make mistakes, regardless of how hard you try not to. In fact, there are a few common mistakes that entrepreneurs make, especially during their first time attempting to start a business. Thankfully, the key to mitigating risk from those mistakes, and hopefully avoiding them altogether, is understanding as much about them as possible. —Forbes.com What’s more, of the less than half that do make it to their fifth year, a mere 33% of those entities will go on to celebrate their tenth year in business. So, let’s take some time to explore the most common reasons new businesses go broke and how entrepreneurs can avoid failing. Lack of Market Research One of the most common reasons new businesses fail is a lack of market research. It’s important to understand the needs of your target audience, as well as the competition, in order to create a successful business. Entrepreneurs who skip this step may find that their product or service is not in demand, or that they are unable to compete with established businesses in the industry. To avoid this mistake, conduct thorough market research before launching your business. This may involve surveys, focus groups, or other methods of gathering feedback from potential customers. By understanding the needs of your target audience and the competition, you can create a business that is more likely to succeed. Poor Financial Planning Another common reason new businesses fail is poor financial planning. Entrepreneurs may underestimate the costs involved in starting and running a business or fail to secure adequate funding to cover these costs. Additionally, some entrepreneurs may overspend on non-essential items, such as fancy office spaces or unnecessary equipment. To avoid this miscalculation, create a detailed business plan that includes financial projections and a budget. This can help you estimate the costs involved in starting and running your business, as well as identify potential sources of funding. It’s also important to keep track of your expenses and income and to adjust your budget as needed. Lack of Marketing and Branding Even if your product or service is high-quality, it’s important to effectively market and brand your business. Entrepreneurs who fail to do so may find that they are unable to attract customers or establish themselves as a reputable business. To avoid this blunder, create a marketing plan that includes branding, advertising, and other promotional efforts. This may involve creating a logo and website, networking with potential customers and industry professionals, and investing in online and offline advertising. Poor Management Effective management is key to the success of any business. Entrepreneurs who lack management experience may struggle to make important decisions, delegate tasks, or create a positive company culture. Additionally, entrepreneurs who try to do everything themselves may become overwhelmed and burned out, which can negatively impact the business. To avoid these missteps, hire experienced managers and delegate tasks effectively. It’s also important to create a positive company culture that promotes productivity, teamwork, and employee satisfaction. Inflexibility Finally, entrepreneurs who are unwilling or unable to adapt to changing market conditions may struggle to keep their businesses afloat. This may involve being unwilling to pivot the business model, invest in new technologies, or adjust pricing and marketing strategies. To avoid this foil, remain open-minded and adaptable. This may involve regularly monitoring market conditions, soliciting feedback from customers, and being willing to make changes when necessary. As we all know, starting a new business is a risky endeavor, but by avoiding common mistakes and implementing effective strategies, entrepreneurs can increase their chances of success. What other mistakes would you include and warn entrepreneurs about? Please take a few brief moments to share your experiences and more so others can benefit from your input! Interested in learning more about business? Then just visit Waters Business Consulting Group.

When it comes time to sell your small business, you want to make sure that you avoid making any major mistakes. If you wait too long to sell, you may miss out on a great opportunity. If you don’t find the right person to represent your business, you could end up selling it for much less than it’s worth. And if you don’t market the business for sale, you may not get the best price. In this article, we will discuss five of the biggest mistakes to avoid when selling your small business: Not finding the right person to represent the business: If you don’t find the right person to represent your business, you could end up selling it for much less than it’s worth. It’s important to find someone who knows how to negotiate and who has experience in selling businesses. Otherwise, you may not get the best price for your business. Most sellers don’t expect the exit from their company to be easy, but many are surprised by how difficult it can be to sell their business for a good price in a reasonable timeframe, especially in the current economic environment. It’s important, however, to not let frustration get in the way of maximizing your sale. —Entrepreneur.com Before you speak with a business broker, it’s highly advisable to get your corporate affairs in order and understand the process. An experienced business consultant can help with these and much more. The bottom line is, that you need to know key details in order to identify the right buyer. Forgoing marketing the business for sale: If you don’t market the business for sale, you may not get the best price. You need to let people know that the business is up for sale and you need to promote it in order to attract potential buyers. You want multiple buyers interested in making offers so that the demand drives up your selling price. This doesn’t mean spending copious amounts of money. But, it does mean advertising smartly to the right people. Asking too much or too little for the business: If you ask too much for the business, you may not get any offers. If you ask too little, you could end up selling the business for less than it’s worth. It’s important to find a fair price that will attract buyers but that won’t leave you feeling like you’ve given away your hard work for nothing. Conversely, if you put it up for sale at a discounted price, otherwise interested buyers might think you’re trying to sell to get rid of a headache. Selling to the wrong person or other company: If you sell to the wrong person or other company, you could end up regretting it later. Make sure that you know who you’re selling the business to and that they are someone who will be able to take it in the direction you want it to go. In other words, someone who shares your business values and approach. Otherwise, you could see your beloved creation turn into something you would never want it to be. These are just a few of the biggest mistakes to avoid when selling your small business. By following these tips, you can help ensure that you get the best price for your business and that you don’t end up regretting the sale later on. If you have any questions about selling your small business, please feel free to contact us anytime! We would be happy to help! Interested in learning more about starting, running, buying, or selling a business? Then just visit Waters Business Consulting Group.

Business Networking Pros and Cons: What You Need to Know Business networking can feel like a real-life roller coaster ride in constant motion. It can be exciting or uneasy with its ups and downs. Some entrepreneurs truly enjoy the experience. Others genuinely dislike it. And still, more approach it half-heartedly and network inconsistently. Regardless of which best describes you, chances are excellent you could use a few bits of good advice about how to get the most out of it. But just as importantly, you need to know when networking works for you and when it’s not. So, let’s break down the pros and cons of business networking so you can understand what you’re getting into. The Bright Side of Networking: Pros That Shine Before we get into determining if networking is helping your business, we’ll first take a look at its advantages and disadvantages. Although the reasons seem self-evident, there is a bit of nuance that lies underneath. Like many other things in life, there’s more complexity than appears on the surface. Now, here’s what you need to know about the pros and cons of networking: Expanding your circle. Networking helps you meet people you wouldn’t normally cross paths with. Think of it like throwing a big net into a pond—every fish you catch is a new connection. These relationships can lead to new opportunities, clients, and partnerships. The more connections you have, the wider your reach becomes. Knowledge sharing. When you network, you’re surrounded by people with different experiences and skills. It’s like attending a grand potluck dinner. Everyone brings their specialty dish, and you get to taste a bit of everything. By sharing insights and expertise, you can learn valuable lessons that might save you time and effort down the road. Boosting your visibility. In business, being visible is crucial. Networking helps put your name out there. The more you connect with others, the more they remember you when opportunities arise. This visibility can lead to referrals and recommendations that might not come your way otherwise. Also, building self-confidence and trust. Each time you meet someone new, you practice your communication skills. Over time, this builds confidence and fosters trust. It’s like training a muscle; the more you use it, the stronger it gets. This self-assurance can help you in pitches, presentations, and everyday interactions. The Flip Side: Cons That Can’t Be Ignored Of course, networking doesn’t always produce the desired results. It can be counterproductive and business owners need to understand why it doesn’t always work. Here are the most common pitfalls you should know about to make better use of your time: Time consuming. Networking can eat up a lot of your day. Attending events, meetings, and follow-ups can become overwhelming. It’s similar to trying to fill a cup with a fire hose; you might end up feeling rushed and burnt out. If you’re not careful, it can take time away from your core business tasks. High expectations. Some people enter networking with big hopes. They expect instant results and connections that turn into gold. But that’s often not how it goes. Think of business networking like planting a garden. It takes time for seeds to grow. If you aren’t patient, the wait can be frustrating and discouraging. Skill mismatch. Not everyone you meet will be in your industry or even understand your business. Imagine walking into a conversation about rocket science when you’re more into baking. This mismatch can make conversations awkward and unproductive. It’s essential to find the right circles that align with your interests and goals. And then, there is the potential for superficial connections. Not every connection will lead to a strong relationship. Often, networking can feel surface-level. You may end up with a stack of business cards but no real friendships or partnerships. Finding the Balance Business networking isn’t all sunshine and rainbows, but it has its bright spots. It’s a mix of chances and challenges. Knowing the pros and cons can help you approach networking with a clear strategy. Whether you’re diving in deep or dipping your toes, being aware equips you for what lies ahead. The journey can be rewarding if you navigate wisely. How to Know If Networking is Helping Your Business Grow Networking can feel like a puzzle for many entrepreneurs. It’s not just about handing out business cards or shaking hands. (Though you will do plenty of those things and more.) Because there isn’t a direct, detailed report to refer to, it’s hard to know when networking is paying off. So how can you tell if your networking efforts are really making a difference? Let’s take a look at how it breaks down. The Ripple Effect: Connections to Opportunities You’ve heard the cliche about tossing a stone into a pond – it creates ripples. Networking works the same way. The more people you meet, the more opportunities can come your way. Are you seeing new clients or partnerships popping up in your life? If your phone’s buzzing with inquiries or collaborations, that’s an obvious sign your networking is paying off. But, there are more signs networking is bringing in new opportunities. So, keep an eye out for a few key signs that your networking is effective: Increased referrals. Are you getting more referrals from new contacts? If people start mentioning your name positively, it shows your network is growing. New partnerships. Have you formed any new partnerships or collaborations? If you’re working with others on projects, that’s a strong indicator that your outreach is effective. Expanding your reach. Are you meeting people in different industries? If your network is stretching beyond your usual circles, you’re likely tapping into new markets and ideas. Tracking Your Connections: The Numbers Game In business, numbers matter. Track how many new contacts you make each month. Are those contacts turning into leads or sales? If you see a rise in leads, your networking is likely contributing to your business growth. It’s basically gardening for business; the more seeds you