There’s an abundance of exciting business ideas out there, pushing the envelope and full of new and endless possibilities – chances are you’ve had a few of these yourself. Maybe it’s a dream to change the way we do business with a new productivity app or to open a mobile dog bakery, but the reality is many of these ideas never reach their full potential.
Coming up with the idea for a new business venture isn’t the hardest part– it’s the execution. It’s about translating the idea into an opportunity to offer something beneficial to your target market and getting them to trust your business.
If you’re thinking of taking your new business idea to the next level don’t become a statistic. Take a look at these mistakes and reasons behind why many great business ideas fail to launch, learning what not to do in the process.
An unrealistic plan (or no plan!)
It’s great to be eager and wanting to make your business idea happen, but rushing things can lead to unwanted troubles down the track. To help support your new idea you need a grand plan. One which is achievable, realistic and involves a bit of planning – a stage in your business journey that cannot be overlooked.
Creating a business plan is like creating the blueprint for your business. It should take all aspects of the business into consideration and have some goals and ideas for each of the areas. This is where you need to keep it realistic, especially if stakeholders are involved. You need them to trust that the idea is worthy and attainable.
Somethings to keep in mind when creating your plan:
- Make honest sales projections based on market research
- Don’t mistake tactics for strategies
- Create realistic goals that are in line with your industry average
- Correctly estimate the amount of capital your business requires
Overlooking risk management
Ensuring that your business is safe and secure is part of every good risk management plan, something that you need to have in place if you want to be in business for the long run. Aspects of your business like the environment, resources, systems and processes all need to be properly managed to avoid problems and risks occurring.
One of the first steps you can take is to identify any potential risks that may cause issues for your business and look at the ways to prevent them from causing a problem. Risk management involves setting up procedures to cope with the impact of a disaster if it were to strike.
Different businesses will be exposed to different kinds of risks, and these can range from anything like a customer potentially tripping over an item at your business premises or having your tools of trade stolen for example.
If a claim against your business were to occur, the financial and reputational implications could spell disaster for your new business dream. Without the right protections in place, you could also be risking your personal finances to help defend your business and pay for any claim damages.
Protecting your business with business insurance is another risk management strategy that all small business owners need to consider. Regardless of the type of business you are running, there are a variety of different types of cover that can help safeguard your hard-earned business.
Some of the typical types of business insurance you may need to consider include:
- Public Liability insurance*
- Professional Indemnity insurance*
- Business Insurance*
- Building insurance*
- Contents insurance*
- Business Interruption insurance*
- Portable Equipment insurance*
- Cyber Liability insurance*
It’s worth having a chat to an insurance agent about the different business insurance options available to cover your business. What may cost a few dollars in the short term could help prevent the potential closure of your business in the future.
Lack of research
Starting a business without any understanding or direction for your business is a rookie mistake made by many small business owners. Things like not developing your product or services properly before taking them to market can create a bad reputation before you’ve even started.
This is where research comes into play. Understand what kind of problem your product or service is going to provide the solution for in the marketplace. Know who your competitors are and what they are offering. Importantly, you need to be clear on how your business is going to be different from everyone else’s and why.
To help make your business idea a reality you also need to apply your leadership skills. Providing the focus and direction you want your business to explore is one of the pillars of business success. Doing the research, fine tuning your idea and steering the ship full steam ahead are all part of being a leader in business.
Not hiring the right people
Having the right team working and supporting your business can sometimes make or break your business dream. With a strong team at the foundation of your business, the possibilities are endless. Being able to trust that you are all on the same page with the united goal of helping the business is essential to the overall success, especially in those early start-up days.
If you have a team that is unmotivated, untrustworthy and not willing to work together, you’re going to have a hard time to get even the simplest of tasks done. This is another area that you cannot rush. Spend time getting the right people for the job, it’s an investment in your business’ future that is worth every dollar.
Make it happen
With a bit of research, planning and not rushing into things, brilliant business ideas can become a reality. Having a clear goal of what you want achieve with your business and having the right team to support it are all elements you need to keep in mind when pursuing a new business journey.
At BizCover, the one thing we can do to help make your business dream a reality is provide hassle-free business insurance options to protect your business from unwanted challenges. Visit us online or give us a call to receive multiple quotes from some of New Zealand’s leading insurers. Compare quotes, select your policy and get covered in minutes.
*As with any insurance, cover will be subject to the terms, conditions and exclusions contained in the policy wording. The information contained on this web page is general only and should not be relied upon as advice.