Data from the US Bureau of Labor Statistics indicates that 20% of new businesses fail within their first year, and around 50% don’t survive beyond their fifth. Detailed below are some of the most common mistakes that start-up businesses make and how to avoid them.

1. START-UP
Mistakes to Avoid

2. MICHAEL ZETSER
Start-Up Mistakes to
Avoid
Business owners, financial advi-
sors, legal experts, and growth
strategists point to the following
as some of the most common
mistakes made by start-up busi-
nesses.
Failing to File and
Register the Business
Picking the right business entity
and then filing and registering
the new business properly (if this
is required) is vital. However,
many start-ups fail to do these
things, which can cost time and
money as a result.

3. Often, using a sub-
contractor or another
professional service is a
better option, and part-
time employees should
be considered instead of
hiring for full-time roles,
especially in the early
stages of a business.
MICHAEL ZETSER
Picking the Wrong
Investors
Start-up owners frequently make
the mistake of believing that
financial backing is the only role
of their initial investors. In reality,
seed investors usually wish to
play a crucial role in the direction
of the new business. Therefore,
choosing the most suitable inves-
tors to partner with is vital.
Hiring Too Soon
Another common mistake made
by start-ups is taking on em-
ployees too soon. Often, using a
sub-contractor or another profes-
sional service is a better option,
and part-time employees should
be considered instead of hiring
for full-time roles, especially in
the early stages of a business.

4. FOR MORE INFORMATION ABOUT COMMON MISTAKES MADE
BY START-UP BUSINESSES AND HOW TO AVOID THEM, VISIT THE
BLOG OF SUCCESSFUL ENTREPRENEUR MICHAEL ZETSER.