Starting up a business is a challenging process that demands the ability to do many things at once. It’s not uncommon for budding entrepreneurs to become overwhelmed and make mistakes that cost substantial amounts of money, time and credibility.

“There are four pillars of a business,” says Scott Vollero, “People, Product, Processes and Money. Problems in a business can be attributed to one of these areas.”

These are some of the most common mistakes made by new business owners — and some actionable tips for avoiding them.

1. Hiring the wrong people

Every entrepreneur knows how difficult it is to find the right employees. Finding someone who has strong skills, an unimpeachable work ethic, and a clear understanding of your business vision is rarely a cinch.

That’s too bad, because your people are your company’s most important asset. Bill Gates once said, “Take our 20 best people away, and I will tell you that Microsoft would become an unimportant company.”

Translation: when hiring, take your time and exercise caution. Don’t hire people just because you like them. Rather, look for the people who offer the most value to your business.

2. Not testing products and services

Many budding entrepreneurs go into business absolutely convinced their idea is going to sell. There’s just one problem: they don’t actually test their markets before going live.

Failing to market-test your ideas is a sure way to waste a lot of time and money. Don’t assume your product or service is going to be an overnight success. Before your needlessly invest time and money in something that’s destined to fail, conduct small, targeted market tests. Once you determine that there is in fact enough demand for what you’re selling, go ahead and put your idea into production. If there’s not enough demand, well, just head back to the drawing board.

3. Having a vague business plan

To build a solid structure that lasts and lasts, you need a strong foundation. The same is true in business.

Your company’s business plan is the blueprint that lays the groundwork for your venture — and the foundation of its success. It must describe your idea clearly and outline specific, measurable actions to achieve your outcome, which needs to be clearly and thoroughly articulated.

Before you launch your business, sit down and ask yourself a simple question: what do you want your business to achieve? Your business plan should fully answer this question. If it doesn’t, you could be leaving too much to chance. Remember, going into business without a clear goal or a framework for tracking and measuring your progress is a sure recipe for failure.

4. Failing to manage your finances

Successful business ownership requires a mastery of numbers — your numbers, specifically. One of the most common startup mistakes is also among the most painfully simple: failing to anticipate how much money a business will require to sustain during its first months of existence, when it’s likely to burn through cash at an alarming rate. A lot of new entrepreneurs fail due to poor financial management, plain and simple.

If you lack expertise with money management, get professional help with accounting and consulting software. It might cost more upfront, but it’s well worth the investment.

5. Not knowing your target audience

To create compelling products and services, you need to know who your customers are, not to mention what they want and need. Otherwise, you’ll have a hard time marketing your product.

The most cost-effective way to do this: designing “customer avatars” that represent your ideal customers. Each avatar should describe a specific type of ideal customer in great detail, outlining their demographics, pain points, and unfilled needs. Every product or service you sell should exist with these avatars in mind. In other words, your products and services should sell solutions to your avatars’ problems.

6. Trying to be a Jack of all trades

Another common mistake: trying to do everything on your own. It’s understandable for passionate entrepreneurs to micromanage their nascent businesses in an effort to ensure that everything is done correctly.

Unfortunately, this is a self-defeating behavior. Entrepreneurs who micromanage tend to put ceilings on their companies’ growth potentials. Remember: you can’t be good at everything, so don’t try to be. Instead, focus on what you’re best at and outsource the rest.

7. Not having an online presence

Do you have a website yet? If not, what are you waiting for!? Startups without robust online presences put themselves at an immediate disadvantage relative to their digitally savvy competitors. As the information age marches on and technology worms its way ever deeper into our daily lives, every business — no matter what it does — needs to adapt.

It can’t be said any clearer: a strong, well-maintained online presence is crucial for any business that wants to stay relevant and have that competitive edge. If you’re serious about your business’s survival, you need to have an engaging website and active social media channels.

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