Starting business? Mistakes to avoid

Have you ever seen a business start on a high gear but collapse within a short period of time? Although challenges are inevitable in any business, you can still cushion your business from failing completely.
Different people venture into business for various reasons. But they must know the A to Z of how what it takes to remain in business.

According to office of advocacy in the United States, the failure rate for new businesses is between 70 and 80 per cent in the first year and only about half of those who survive the first year will remain in business the next five years which is not an exception in Uganda.

Trying as much as possible to avoid making mistakes in the business should be a priority to any start up.
Experts advise startups to seek for help from those who have already been there to succeed.
Ms Annet Katusiime, a financial advisor, says an individual needs to understand what they are doing before they can start a business.

Usually, businesses fail because some people do not know why they started them but all they look forward to is making money.
“People should quit starting up businesses just because they need to make money. Instead, they should start one up because they have a problem to solve. That sustains the business since there is need for it to be in place,” advises Ms Katusiime.
Starting a business while looking out for your interests alone kills the business. This is because you might ignore other people who should be your main target.

Tilda Nabanjja, a banker and financial advisor, says business is broad so people should not just start one to make money. But they also need to know how long it will last in the market. Ultimately, its unique nature will retain and attract new customers.

Limiting creativity just limits what you can do. Yet the world is advancing with new innovations every other day.
Accountability according to Mr Bosco Lotte Bogere, a procurement officer, is key in business. But some new businesses ignore it yet it can either build or destroy the business.

“Sometimes people do not wait to learn their business before hiring which is dangerous because there is no way they can supervise others if they do not understand the business,” says Lotte.

Depleting cash
He adds that a lot of money is taken out of a young business to cater for operational costs such as paying the workers. But they can easily cheat you since you do not know the capital outflow from your business. So balancing sales will be hard.
He cautions people against misinterpreting the market and undermining their competitors because researching about the market is the first step one takes before starting business.
Sticking to your physical location alone might cut you off from potential clients who would have known about your business online.

Poor record keeping
Failing to keep track of the interest earned and spending it is also another aspect he says kills the business. In business, every coin counts. Interest is supposed to be put back into the business so that it expands.