Starting a business can be the project you need to transform your life; unfortunately, and due to lack of planning, this dream can turn into a nightmare if it is not carried out with an order. When it comes to business and especially money, it is necessary to be stone cold and make decisions based on numbers, analysis, and evaluations, not feelings and hunches.
According to information from Entrepreneur magazine, approximately two out of 10 companies fail in the first year of operation. The reasons are diverse and range from lack of product-market fit, financial or marketing problems, to conflicts in the work team, according to the Failory platform.
Starting a company requires effort, hard work, planning, and of course, the capital. If you don’t have a savings fund, you can turn to some ITIN loans to get the budget you’re looking for. With money in hand and ready to get started, consider the following common mistakes when investing in a business and avoid them at all costs.
List of most common mistakes at the beginning of the investment of a business
- Do not make a business plan. A business plan will be the compass that will guide your business to solid ground. Use the Business Model Canvas, a simple and easy-to-use format that will clarify your ideas.
- Let emotions rule. Emotions are the worst enemies of decision-making; they can lead you to make immediate decisions that, in the long run, can cost you a lot of money. Ask for outside opinions and be open to change.
- Poor budgeting and lack of capital. Excitement about new acquisitions or overly optimistic projections can lead to incorrect budgeting. Getting financing through ITIN loans is an excellent alternative for people who don’t have Social Security numbers.
- Lack of advice. You don’t know everything; other entrepreneurs with more experience or experts can guide you. Take advantage of other people’s knowledge to avoid making these mistakes.
- Not doing market research. Market research was done to minimize the risks of an investment, do it, and do not jump into the void blindly.