Starting a business of any size requires a whole lot of patience, effort, skill, and, of course, resources. Further, to make the investment of human and physical resources pay off, it is important to adopt the right practices and tread carefully in the initial stages of a startup. The process can involve a lot of trial and error, but here are a few major mistakes one can avoid while setting up a small business: 1. Skipping market research A clear understanding of the market and the target audience is a crucial aspect of starting and running a successful business. Before setting up a startup, one must have a proper knowledge of the segment that they are entering. They must know their target audience as well as competitors. One must also study their target audience in detail to understand their preferences and complaints regarding available products. Following thorough market research, they can develop new products or services and improve upon existing ideas to stand out. Further, entrepreneurs must understand their competitors’ approach to learn more about the market. Without such research, a startup may find it difficult to grow.  2. Not making a clear plan A clear plan for a startup is like laying a foundation for a building.