Common Business Pitfalls To Avoid For Students
Owning a business while still in school is an excellent thing for students, the benefit attached to this phenomenon is in no doubt very great. As a student business owner, you can pay your bills and even take care of yourself without depending on your monthly allowance from your parent or guidance as the case may be. It also allows you to save up for future purposes and gives you a lot of experience in preparation for running a business in the world outside of school. All this makes owning a business as a student paramount.
However essential starting up something may be for a student, it is quite important to know some basic rudiments and guidelines or tips guiding the establishment of a business, to avoid running on a loss which might eventually lead to the closure of the business. This article is aimed at bringing students that are willing to start up a business for themselves abreast of some pitfalls they should avoid, irrespective of the type of business they choose to venture into.
These pitfalls can make you close down your business, because if you don’t do away with it from the start, or try to curb it along the line, you will keep spending a lot to save your business and eventually you’d be left with no choice than closing it down, that’s if you’re lucky enough not to run into debt. Highlighted below are some of the pitfalls to avoid running a successful business:
LACK OF FEASIBILITY STUDY – One of the most common pitfall students fall into before starting up a business is lack of proper feasibility studies. It is essential you make research and enquires about how successful your business can thrive in a particular environment, availability of consumers for the goods or services you’re offering, your possible challenges and all other necessary details. This study enables you to prepare adequately for anything that might possibly come up and help you identify your target audience with ease.
HUGE STARTUP FUNDS – Every business is a trial, this reason is why investing all your savings into a business at once is totally wrong. There’s a need to test run your business on a small scale before gradually increase the scale of the business. The reception of your goods or services at the trial stage helps you determine how rapid you will increase the scalability of your business.
RELATIONSHIP EFFECT – Credit kills a business faster, this is why the effect of relationship in a business should be greatly reduced. It is paramount to ensure either your friends or family pay for any goods or services you offer to them, the only preferential treatment might be in the form of a discount. This act helps you sustain your business more.
HIGH-PROFIT MARGIN – Every business definitely started with the aim of making profits, however, if the profit margin becomes on the high side, you might eventually record low patronage. This reason is why you must fix a reasonable student-friendly price on your goods or services, in order to attract more people and get a high rate of profit turnover. Running a startup business on a high-profit margin would eventually kill the business due to little or no patronage.
PROCRASTINATION – This factor is one of the greatest pitfalls of all things in general, not only in business. It is essential for you to take decisions and actions affecting the success of your business as quick as possible, get the things you think your business is lacking done early enough. Procrastination always hampers the growth of any business.
The business has always been about trial and error, but avoiding all these pitfalls and putting all the precautions mentioned into practices would definitely reduce the risk of failure drastically.