Being an entrepreneur can be a lucrative venture for most people, but it’s not uncommon for businesses to fail in their early years, even with the best ideas. Startups can be particularly difficult to get off the ground. However, if you take the time to learn from other people’s mistakes, you can start off on the right foot. Here are 4 of the most common pitfalls new entrepreneurs make.

1. Not Having a Business Plan

A business plan is essential for many businesses, but particularly startups. In the early stages, it’s important to have a roadmap in which your business is supposed to operate. This includes financials, marketing, business organization, and the products or services the company is selling. Sticking to a plan reduces the risk of a business derailing. Plus, these plans are often a key part of securing funding from investors. Any lender will want to see that you have a robust plan for success.

2. Not Doing the Research

A great business idea will go nowhere without the right opportunity. This means that before jumping headfirst into your startup, you should ensure you fully understand the market you’re operating for on both a local and industrial scale. In many cases, this understanding can help inform your business plan by helping you figure out how to distinguish yourself from competitors and if the market even has a demand for what you’re offering. Also, use your research to really figure out who you want your customers to be. From there, you can focus your efforts.

3. Not Following the Legal Requirements

There are a few legal requirements in starting a business, and sometimes, they’re easy to miss. First, you need to register your business, ensuring that your name and associated logos are not trademarked already. Then, choose the right business entity for your operations, whether that’s a sole proprietorship, an LLC, or a corporation. Each has its own pros and cons, so take the time to choose what works for you. Finally, be sure to protect any intellectual property so you can avoid legal issues in the future.

4. Not Understanding the Demands

It’s good to have the end goal in mind, but never underestimate the difficulties that come with getting a startup off the ground. Running a business, particularly in the early stages, can take up all your time and money. If you’re sure about your company, be prepared to put other things in your life on hold in order to get your business going.