The 10 Most Common Mistakes Made while Founding a Business.
A lot of time and effort is invested in setting up a business. Nevertheless, a large number of founders fail due to the same, basal errors. Here are the ten most common errors in a concie list.
Error no. 1
Wrong Expectations about Independence
The founding of a company requires a lot of work. Irregular working hours, as well as hardly any vacation and leisure time are the result. Income is also anything but steady, which can lead to problems when it is imperative to cover private costs. This can be, for example, the caring for a family.
Error no. 2
Lack of Preparation
Before a hospitality business can be established, the up-and-coming restaurateur must gather information about the industry. There are many legal requirements, such as the obligation to acquire the concession, which must be adhered to.
Error no. 3
The Consulting Error
The gastronomer does not have to be able to do everything, but only has to have a core competence. This determines the field of activity of the founder. Anything outside the core competence should be entrusted to experienced consultants who have specific expertise and are able to carry out the tasks professionally and routinely. These include lawyers, external accountants and marketing service providers.
Many founders make the mistake of taking on tasks outside their area of expertise in order to save costs. Due to their lack of experience, they are unable to perform these tasks efficiently.
Error no. 4
The Controlling Error
When setting up a company, it is essential to calculate costs and income as accurately as possible. This planning should not be neglected, as it forms the basis for further market strategies and planning.
Error no. 5
Lack of Support in the Personal Environment
If the family can offer support in some tasks, the founder should accept it. Relatives and close friends can take over auxiliary services and, in the event of illness, fill in at short notice or lend small sums of money if a financial dry spell has to be bridged. In doing so, the qualification of the respective helper has to be considered. Of course, it makes little sense to have the four-year-old brother design the logo.
Error no. 6
Lack of Marketing
Even the best restaurant has no visitors if no one knows it. Digital and analogue visibility are essential for generating sales. To do this, a plan must be drawn up that includes concrete measures to raise awareness of the company. Marketing costs must be included in the budget.
Error no. 7
The financial requirements of the new restaurant should be kept to a minimum. This means that unnecessary investments must be avoided at all costs. These superfluous expenses include personnel that is not yet needed - for example, because the restaurant is running at full capacity yet - and prestige objects such as company cars. The founder must also consider whether it makes sense to buy used equipment instead of new equipment in order to save costs.
Error no. 8
Violation of Laws and Formalities
Based on error no. 1, many founders fail to acknowledge the fact that non-compliance with legal regulations and obligations may have severe legal consequences.
Error no. 9
Lack of Self-Criticism
Since founding is for most of them a completely new activity, they cannot build on their own experiences and "rookie mistakes" may happen. No one will be able to run their business completely faultlessly. Therefore, it is important to observe one's own actions critically and to reflect on mistakes in order to avoid them in the future. In some fields of activity, it is also useful to seek external assistance.
Error no. 10
In the gastronomy sector, in addition to the psychological stress of foundation stress and financial insecurity, physical work in the company occurs. The founder must be aware of this and be up to these challenges.
If you make sure tpo avoid these mistakes or make only minor ones, you will have a very good foundation on which to build. But nobody is perfect, mistakes are part of the journey and can never be ruled out. Rather, it is about learning from them and growing. Were you able to find yourself in our Top 10? How did you deal with your mistakes and accidents? Feel free to share your experiences in the comments!