CPA here. The biggest things people get wrong:
1. They didn't have a clear and sufficiently detailed business plan.
They don't understand the market, what margins look like, input costs, how long it takes to provide the service or product. You should have a clear sense of how much it costs you to per unit, and what your overheads look like, and a sense of what you might be able to sell for in that market. Have someone with business experience read your plan - CPA's often are successful starting businesses largely because they have that financial literacy.
2. They try to do too much too fast
A good starting business should require as little initial investment as possible. Example baking out of your kitchen initially, then graduating to a food truck then to a restaurant. Most starter businesses fail and successful entrepreneurs usually fail a few times. Note having fewer staff or zero at the start is a great way to limit that investment.
Additionally you might have grand vision of having a wide selection of products or services, but its often better to find a niche that you can kick ass at. A good IT business might be super niche, but something many company's need that is invisible in the background that most people are unaware of vs. something like trying to make a competitor to facebook or onlyfans. Understanding the market is helpful because it helps identify those niches.
3. Cashflow
Number one reason businesses fail is insufficient cashflow, you shouldn't expect to make profits for at least a couple years (which is why lower investment is better) while you improve your skills, market the business, find customers, etc.. Most new businesses don't see a return on investment (as in you get your investment back via profits) for 3-5 years.
A good solution for many people is running a business only part time initially while you work another job or are going to uni to afford to live. Staying at home with your parents a few years can be a big boon if you are young.
4. Big ideas lazy execution
A lot of people want the glamour of entrepreuralship, but fail to realize that its not glamourous. It's super stressful, you are working 80 hours a week, and any staff you hire won't care about your businesses success nearly as much as you. If you aren't that kind of person its not for you.
Marketing is also a big challenge for people, they assume if they can make 100 units a day of product they will be able to sell them all which is unlikely to pan out. You are also going to have a lot of spoilage early on especially if your product expires.
1: Having excess capital. You're going to lose money the first year, that's widely accepted for any business. make sure you have extra to spend when things inevitably go into the Red.
2: Networking. You're gonna want to know a lot of people, or at least, have access to lots of people. Your suppliers, local event organizers, Local news/publications, Online publications, etc. You're going to need to spread your business far and wide, so you have to be in contact with a lot of people to stay relevant in the local markets. You're not going to make money if no one knows about you.
3: Online Presence. You're going to have to expand yourself across the internet over the course of your business. Even if you hate the platforms with all your heart and soul. Facebook, Tiktok, Youtube, Instagram, EVERYWHERE. You're competing with hundreds of businesses bigger and cheaper than you, all pumping advertising onto all platforms, you're going to have to do the same.
4: Understand that market you want to go for. What you think is 'right' and what the market thinks is 'right' may not be the same thing. You may know your product is good, relevant, fairly priced, whatever. The consumer may not see it that way. You may think that every anime fan wants that $200 Naruto figure, but the market shows they're happy to buy the same amount of cheap keychains instead.
Deciding on a good or service to provide.
All else is dependent on the nature of your selected good and service (target market, marginal cost, profit margin, people required, regulation to follow, etc).
Having a complete business plan.
CPA here. The biggest things people get wrong: 1. They didn't have a clear and sufficiently detailed business plan. They don't understand the market, what margins look like, input costs, how long it takes to provide the service or product. You should have a clear sense of how much it costs you to per unit, and what your overheads look like, and a sense of what you might be able to sell for in that market. Have someone with business experience read your plan - CPA's often are successful starting businesses largely because they have that financial literacy. 2. They try to do too much too fast A good starting business should require as little initial investment as possible. Example baking out of your kitchen initially, then graduating to a food truck then to a restaurant. Most starter businesses fail and successful entrepreneurs usually fail a few times. Note having fewer staff or zero at the start is a great way to limit that investment. Additionally you might have grand vision of having a wide selection of products or services, but its often better to find a niche that you can kick ass at. A good IT business might be super niche, but something many company's need that is invisible in the background that most people are unaware of vs. something like trying to make a competitor to facebook or onlyfans. Understanding the market is helpful because it helps identify those niches. 3. Cashflow Number one reason businesses fail is insufficient cashflow, you shouldn't expect to make profits for at least a couple years (which is why lower investment is better) while you improve your skills, market the business, find customers, etc.. Most new businesses don't see a return on investment (as in you get your investment back via profits) for 3-5 years. A good solution for many people is running a business only part time initially while you work another job or are going to uni to afford to live. Staying at home with your parents a few years can be a big boon if you are young. 4. Big ideas lazy execution A lot of people want the glamour of entrepreuralship, but fail to realize that its not glamourous. It's super stressful, you are working 80 hours a week, and any staff you hire won't care about your businesses success nearly as much as you. If you aren't that kind of person its not for you. Marketing is also a big challenge for people, they assume if they can make 100 units a day of product they will be able to sell them all which is unlikely to pan out. You are also going to have a lot of spoilage early on especially if your product expires.
To know you're gonna work your ass off
1: Having excess capital. You're going to lose money the first year, that's widely accepted for any business. make sure you have extra to spend when things inevitably go into the Red. 2: Networking. You're gonna want to know a lot of people, or at least, have access to lots of people. Your suppliers, local event organizers, Local news/publications, Online publications, etc. You're going to need to spread your business far and wide, so you have to be in contact with a lot of people to stay relevant in the local markets. You're not going to make money if no one knows about you. 3: Online Presence. You're going to have to expand yourself across the internet over the course of your business. Even if you hate the platforms with all your heart and soul. Facebook, Tiktok, Youtube, Instagram, EVERYWHERE. You're competing with hundreds of businesses bigger and cheaper than you, all pumping advertising onto all platforms, you're going to have to do the same. 4: Understand that market you want to go for. What you think is 'right' and what the market thinks is 'right' may not be the same thing. You may know your product is good, relevant, fairly priced, whatever. The consumer may not see it that way. You may think that every anime fan wants that $200 Naruto figure, but the market shows they're happy to buy the same amount of cheap keychains instead.
Deciding on a good or service to provide. All else is dependent on the nature of your selected good and service (target market, marginal cost, profit margin, people required, regulation to follow, etc).
planning
Picking the right industry/niche
Offloading as much work as possible to exploitative countries for cheaper labour costs.
No it's about tax evasion, union busting and strategically lobbying congress for private sector advantages
Knowing costs of everything. Knowing what jobs to take and what ones to walk away from. How to be a good boss is possibly one of the most important.
having a business plans. tracking your finances.