4 Business Mistakes to Avoid in Choosing Resources and Tools for Your Startup Business

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Are you a startup business owner trying to get your systems, processes, resources, and tools in place? Skip the trial-and-error stage and get to know the most common business mistakes you should avoid when starting up a new business!

Starting a new business is an exciting journey, but it comes with its fair share of pitfalls. One of which is the crucial decision in choosing which tools to use in your processes.

Your tools and resources are foundational to your business success, especially if you’re a startup business! And because most tools are paid, you also have to think about limited budget and the need to maximise ROI. 

That’s why many new business owners tend to just “wing it” and then go back to zero when the results don’t align with what they hope for. The endless cycle of trial and error begins. 

What if I choose the wrong tools?

If you choose the right ones, you can be certain that your operations and efficiency will be smooth and growth is just around the corner. But if you happen to choose otherwise, well, we can charge that to experience, but that could be costly too.

And when we talk about costs, it’s not just about money, but also time and effort! If you keep on switching from one tool to another, this will slow down your business growth.

You will take time to train yourself (and your team) in using the new tool, and then you’ll have to migrate all the data again, which cause huge downtime in your company.

And mind you, data migration can be a REAL pain in the head!

This will lead to missed opportunities and affect the serviceability of your business. How about the consistent 5-star experience goal for your clients?

Need help in placing your end-to-end process, systems, and tools in your business? Our Grow With the Flow program is your answer! 

4 Common Business Mistakes Startup Business Should Avoid

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Of course, we know choosing the right tools isn’t a walk in the park. We’ve been there, and done that. Fortunately, we’ve got fabulous Champions and Heroes to save the day! The load and the stress are definitely lightened. 

To help illustrate the common mistakes business owners usually make, let’s use a scenario.

For example, your business needs Customer Relationship Management (CRM).  A CRM is a tool with strategies and technologies a company uses to manage and analyse customer interactions, sales, and can be a basis for the business growth. 

It is an essential tool to have, because it makes work easier, faster, plus with integrations, you can automate tasks! Your customers feel important, but you don’t have to spend too muhc time to make it happen. 

But here’s the dilemma: With all the CRMs in the market, which one should you choose? Which one would most likely lead you to the smooth process? And which ones are most likely not fit to your business?

To help you out, here’s a roundup of 4 most common mistakes to avoid when starting a business, especially when it comes to choosing the right tools.

Need more guide in your systems and processes? Talk to our Growth Strategist!

Mistake #1: Not setting goals

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One of the common mistakes when starting a business, especially startup ones is not setting goals. 

Let’s take it in the context of the given scenario: choosing the right CRM for your startup business. 

Most business owners just randomly choose a CRM because it was famous, they saw someone else use it, or it was recommended to them. 

The thing is that when you established your business, you have goals, right? So before choosing any tool or resources, do a cross-check first. 

Does this tool/resource fit and align well with my goals and values? 

What are my goals in choosing this tool? 

Do I want to nurture my leads through email marketing? If I do, does this CRM has built-in ability to organise contacts, send emails, and analytics to help me see the results?

Does this tool allow me to have integrations in case I need other tools outside of it?

Is this tool worth its cost? 

And the list of goal-centered questions goes on. 

Remember that without clear goals, your startup is like a ship without a rudder. 

So in every decision you do in the business, make sure that each are aligned with your goals. It is best to not dive in right away to avoid mismatch in choosing the tools to use in your business. 

Mistake #2: Neglecting the value of proper research

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The second mistake is not properly doing due diligence through research. Just because someone recommended a tool to you doesn’t mean you won’t do any research at all!

Remember that it is in the research that you’ll clearly know which tool is the right match in your business. This is closely tied with the first and the third common mistakes we’re discussing in this article. 

In our scenario, doing a thorough and comparative research between the CRMs in the market will enlighten you of each of their features, pricings, user interface, and even customer feedback. 

With these information at hand, you will get a clearer view of which tool is aligned with your business goals.

Remember: If you skip this crucial step, you’re most likely to be led to misguided strategies, wasted resources, and missed opportunities, ultimately hampering your startup’s growth. (And we don’t want that, don’t we?)

So, to avoid this mistake, be sure to do thorough and comparative research, so you’ll know the perfect fit tools for your business!

Related Read: 5 Best Automation Tools to Use for Business Growth

Mistake #3: Focusing Solely on Cost

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We understand that as a startup business, the budget might be limited. But this doesn’t mean that cost is all that should matter when it comes to deciding whether to use or not a tool. 

Yes, keeping expenses low is important, but choosing tools for the business based solely on low price can backfire and can cost you so much more!

Most of the time, cheaper tools and resources lack the quality and functionality needed to support your business effectively, compared with the fairly good-priced ones.

This is also the reason why you should do a comparative and thorough research – to help you balance cost with functionality and minimise the risk of investing too much time and effort in something that will not be able to support your business goals in the long run.

To avoid this pitfall, consider the value and ROI of your investments. 

Remember that spending a bit more upfront on quality tools can save you time, money, and headaches in the long run, leading to better outcomes and efficiency.

Mistake #4: Avoiding Smart Technology, like using AI

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This last one might take you by surprise, but yes, many business owners are still shying away from using AI. 

There are varying reasons why, such as:

• Lack of clear understanding about how AI works
• Cost/price concerns
• Fear of using “complex” tools and integrations, saying they’re not into the techie stuff
• Concerns about data privacy and security
• The common perception that AI will replace human jobs
• Sceptical about the return on investment (ROI) of AI
• Resistance to change, fearing that it will disrupt the culture the business already has
• A whole lot more!

But the reality is that AI can help scale up the business in many wonderful ways.

If you want to be in the trend, businesses has more leverage with smart technology! When you avoid AI, you’re putting your business at a competitive disadvantage. 

Truth is AI can streamline operations, enhance customer service, and provide valuable insights through data analysis.  

When you implement smart technology, you improve your business efficiency and nail your place in staying ahead of the curve by adapting to technological advancements.

By the way, did you know that you can even soslidify your business SOPs using the help of AI tools? Learn more about that in our article! 👇🏻

Related read: 3 AI Tools For Creating SOPs For Your Business

Case Study: How NS Kept His Business Thriving Even While on Holiday

NS is a TGH client who was able to put his systems and processes in place with the help of our Growth Specialist. 

He’s got a lot going on in his business, really. What helped him get out of the rut was when he got a fantastic Champion to assist him and he embraced the wonders of a project management tool, ClickUp, in running his business!

Hear NS’s story here:

With a human power and AI power in place, we was able to go on a holiday for 6 weeks, rest assured that his business is running smoothly and successfully.

So you see, AI does NOT replace human power. Rather, it amplifies the abilities of a human being to do more!