Common startup mistakes and how to avoid them: spending money on the wrong things, rushing through the hiring and onboarding process, acting without planning, operating without a style guide or brand image, being afraid to try and learn, partnering with the wrong investors. Starting a business is quite a challenge, but there are many areas you can focus on to ensure that your company stays afloat beyond the first year and continues to be successful. We asked several small business owners and executives to share 20 mistakes that new business owners should avoid when starting their companies. According to the Bureau of Labor Statistics, more than 18% of new businesses fail during their first two years of operation and more than 55% of companies don't survive beyond the fifth year.
So how can you successfully launch and manage your startup? We contacted hundreds of small business owners, growth strategists, financial advisors, legal experts, and business consultants to compile the 20 most important mistakes that startups make so you can avoid them when starting your own business. The COVID-19 pandemic has posed an additional challenge for new business owners. Safety measures, such as masks, hand sanitizer, and plexiglass separators for staff and customers, can be expensive. In addition, at the start of the pandemic, lockdowns reduced spending, which proved to be a challenge for small business owners.
Eric Porat is a successful entrepreneur, investor, and online digital marketer with more than 15 years of experience buying and selling websites. Premature scaling is the biggest mistake any start-up entrepreneur can make. Around 70% of startups scale up prematurely.