Successfully creating a startup requires vision, clarity of purpose, and a high-quality product. However, even the most revolutionary concept can falter if the founders don’t master basic business tasks, such as accounts receivable management and market research. Here are some of the most common mistakes that cause your startup to fail.

3 Common Mistakes New Business Owners Make

1. Not Connecting With Potential Customers

Many startups, especially those in the tech industry, are committed to solving a particular problem according to their unique vision. However, products designed in isolation could have problems the designers might not recognize or features that may turn away prospective customers. When developing your product or service, collect feedback from a diverse pool of potential customers to discover what they enjoy and what might push them away.

2. Underpricing Your Product

Many startup founders set prices far too low because they are uncertain about asking for a fair market value. While this may initially attract customers, the revenue generated may not be enough to fund your next phase of growth. In fact, you could actually lose money when you need positive returns the most.

3. Attempting to Handle Everything

When funds are limited, handling payroll and accounts receivable management yourself might seem like an effective strategy for saving, but it could cost more in the long run. Outsourcing these services to a third-party provider will eliminate the risk of tax mistakes, while hiring an accounts receivable management provider will ensure you actually collect the funds you’re owed. Professional financial management services allow you to concentrate on building your business’s profile, attracting customers, and improving your product.

Since 2001, Joseph, Mann & Creed has offered high-quality services to established businesses and startup companies to the Greater Twinsburg, OH, area. With their accounts receivable management and debt collection services, their courteous, professional staff will keep your revenue streams flowing. Visit their website to learn more about how they can help, or call (216) 831-5626 to discuss your needs with a member of their team. Follow them on LinkedIn for up-to-date news and information.