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Three Common Mistakes Of Any Start-up Businesses

Updated: Apr 21



If you have such huge funds and confidence to start a business, there are common mistakes of some of our colleagues that you should consider. Some of them pursue such endeavors lack of sufficient information and skills; instead of expecting some profits, they incurred huge losses. These 3 common mistakes can either bring your business at its pinnacle or it will drag your business into the deep buttom.


First, the inability to identify the accurate break even costs and monthly fixed expenses in order to predict the gross margin of the business.


If a start up business will depend on uncertainties, the business will surely meet an accident. It is necessary to have a reliable calculations on costs and fixed expenses in order to identify its monthly sales target.


Second, the ignorance on capital turnover or inventory turnover will bring the business having a problem on identifying most products or services to gain more profits.


If a start up business does not have calculation of capital turnover or inventory turnover, the business will be have a problem of misallocation of investments or capitalization.


Third, the negligence on advertising and marketing is a cruicial mistakes of the start ups. Many businesses failed due to unhealthy marketing environment.


With appropriate skills on advertising and marketing, the business will be like someone jumping into a pool with sufficient water.


Even you have millions of capitalization but your market is too small, your business will surely fail.


It is better to have larger market environment with small capitalization, rather than large capitalization with small market environment.



 








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