If this is your first time starting a service business you may feel overwhelmed by all of the things that you need to do and take care of. This is why, instead of trying to break down everything that you should do we decided to give you a list of the top mistakes you should avoid at all costs. This will help you get a better idea about how to approach building your business and will save you quite a lot of trouble when you are first starting out.
1) Not writing a business plan
This one is fairly obvious and it probably appears on every list about what you should do when starting a service business, including our own list on the topic which you can find by click here!
There is a good reason that a business plan appears on every such list.
A business plan covers a lot of different aspects of your business. It is within your business plan that you will decide your company structure, your needs for funding, your branding, your goals, and the steps you are going to take to achieve them, the market, and where your business fits in the market. All of these questions are incredibly important and if you start without knowing the answer to all of them, then you may not be able to grow your business with the same speed and efficiency that you had hoped for.
2) Not knowing what your competition is
For some reason, many people decide to go into business without being aware of what their competition will be in their industry. Your competition has set a standard for the type of business that you are starting. If your business is unable to compete with that you may find that you will have a hard time finding any clients, as most people will choose your competitors since they will be more well established. This is why knowing who your competition is should be the first step your take when trying to build your business.
3) Not knowing your market and demographic
Much like with your competition, if you don’t know who your main demographic or target audience will be it will be hard for you to set up a business that will attract your target audience to your service. Before you start your business try to see where you fit in the existing market, if any characteristics make your services unique make sure to promote those from the start, this will help you increase your audience and clientele much faster.
4) Not knowing your budget
You should have a budget before you set up your business. Your budget will cover initial setup costs, daily costs of running your business and will then be used to keep up with your profits and costs. If you are not aware of all your money responsibilities from the start you will not be able to create a business that is sustainable in the long run. Always form your budget when you are building a business if you want success.