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When you are thinking of starting a new business, you naturally look for the best advice on how to do it right. But it can also be helpful to look at it from the opposite angle and identify common mistakes to avoid. By learning from other people's mistakes, you can save yourself a lot of time, effort and pain.

Today I am going to share with you some of the most common mistakes I see entrepreneurs making every day.

Are you making some of these mistakes?

1. Treating Your Business Like a Hobby

When people think of starting a new business, they often turn to something they love doing, which is often a hobby. This can be a good idea, but be careful once you start your business that you don't treat your business like a hobby. You will need to work hard to get your business going and also to keep it going. You can't just tend to it when you feel like it.

To overcome this struggle, it helps to have a schedule of when you work. Also set daily tasks and goals, and even more important, COMMIT to getting them done in the specified time.

2. No Clear Plan or Strategy

If you fail to plan, you plan to fail.

Do you have a business plan or strategy to go by - a vision of what you want your business to be and a step-by-step of how you are going to get there? When starting a new business, this is essential to keep you on track.

I know it may seem tedious and it is a huge task, but it is also a huge piece of the puzzle you need to have when starting a new business. Once you have your business plan in place, you can see the path you need to take, and it is easier to tweak along the way than just spin your wheels not knowing what direction you are headed with your business.

It is important to know that having a business plan doesn't mean you have to stick to each detail like glue. The beauty of a business plan is that it is never final. It is there to guide you. If something isn't working in your plan, you can always change it.

3. Spending Money in the Wrong Places

When you are first starting a new business, be careful where you are spending your money.

Yes, you need some form of marketing, but be careful about spending too much money on needless brochures and other marketing material until you're a bit more established. I suggest having 6 months of sales and presentation experience before spending a substantial amount on marketing materials.

In my experience, marketing materials that will serve you best are your website, starting a blog, and some flyers or information on your business that you can share with others.

Focus on attending free networking events, speaking at events in your community and taking advantage of word-of-mouth marketing. If you have people that have used your service or product, ask them to write a testimonial or ask them to give referrals. Most of the time, you don't even have to ask. If people love your product or service, they will tell people.

Another free referral source option is to partner with someone in your community whose products and services are complementary to your own.

4. No Recordkeeping System

Everyone knows they need to keep records when starting a business. However, this task is probably one of the most mundane and often gets pushed to the backburner until something forces you to get organized.

Start keeping good, clean records from the beginning. Find out what records you need to keep and for how long. You can find this out from resources such as www.irs.gov or your local Small Business Administration office.

You will feel more in control when you are organized and your day-to-day office tasks will go a lot smoother.

5. Not Having a Niche

Do you know your market? Is there a demand for what you are selling?

My advice to you: Don't fake it.

People may be drawn in at first, but if you do not know your market and what it desires, you will fall flat and your customers will eventually see through the facade.

Starting a business is one thing, but don't start a business just to do so. Start a business that you are passionate about, have knowledge about and one that has a purpose for you. People will be drawn to that passion and you will always leave them wanting more.

6. Not Getting Any Feedback

Before starting a new business, you should have done some research or legwork on the product or service you are offering.

Have you tested your product or service on anyone yet? Have you gotten feedback on whether people would buy from you? If not, how could you change it so they will?

This type of feedback is critical before you start out, so you can get a feel for the market. And once you're up and running, consistently asking for feedback on your product or service is essential for effective marketing.

In Closing...

The bottom line here is that when starting a new business, you need to STAY motivated. If you are truly following your passion, chances are very good that you will stay motivated. But, we all have our moments where we may question certain aspects of the business we have created.

Starting a new business is challenging and often overwhelming, but it's worth it! I hope by giving you some tips on how to avoid some common mistakes I will help you achieve the success you desire.

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