Starting a business begins with filling a need and building credibility, but the factors that go into making your business a smashing success don’t stop there. While the barriers for setting up a company are low, the majority of people starting an online business fail largely due to mistakes that seem obvious in hindsight. Such as overestimating profits or trying to be too many things to customers from the onset.
Money
Be optimistic -- just not about money. “There’s a very good chance that your company will run out of money before it makes any,” cautions Tobak. “Know how much cash you’ve got to run your business, what your burn rate is and make sure that you have a plan to try to get more before you run out.”
Customer service
With so many of our business transactions happening over the Internet, it’s easy to forget that customers are people who are way more likely to return to your website if they have a good experience.
Plan
You don’t need to have a formal business plan -- but you still need a plan. “People regard the business plan as homework they don’t want to do but planning helps me -- whatever my success is,” says Tim Berry, chairman of Palo Alto Software, which produces business-planning software and author of The Plan-As-You-Go Business Plan
Early hires
Entrepreneurs rush the hiring process to quickly fill positions in order to scale their business. But by going down this route, founders run the risk of issues down the road, including a mismatch in skill set and business needs, a personality that doesn’t bode well with the culture or a lack of commitment to the company’s mission.
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