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4 Costly Mistakes to Avoid When Starting a Business

how small businesses can prosperAre you ready to start a new business? Opening a business can be a very exciting time in your life. It can provide you with the financial freedom you have been seeking and allow you to be your own boss. However, beginning a new business can have its downfalls as well, especially if you make mistakes early on.

Related: 14 Cheap Business Ideas You Can Start Today

4 Costly Mistakes to Avoid When Starting a Business

Take note of these costly mistakes that you should avoid as they may hinder the successful operation of your business.

Diving in Head First

It’s important to remember to take your time in starting a new enterprise. As exciting as the prospect of beginning your own business can be, biting off more than you can chew can be detrimental to its success. Create a realistic plan and begin checking off the necessary steps in order of importance. Trying to do everything at once can lead to an early business failure and a lack of enthusiasm. (You may even want to keep your day job as you test out the waters of your new business and its potential for growth.)

Prepare for a Lifestyle Change

Many people believe that once you open a small business, life becomes easy and money flows in effortlessly. This is not the case! Understand that to open and operate a successful business, sacrifices will need to be made.

You might have to be away from home more often than you and your family are used to due to the effort that must be put into developing a new business. It’s a great idea to explain to your family that, at least in the beginning, your presence may be limited while you are in the initial preparation mode.

The Waiting Game

Having the egotistical attitude of believing people will magically appear to seek your services will surely leave you in a pit of despair. It’s imperative to design a marketing plan in order to promote your business and its services and/or products. You must be willing to invest endless hours of work to build your brand from the ground up.

So, plan to work your tail off so that people will discover your business and keep coming back for more.

Merchant Account or Bust

This is a very common rookie mistake of new business owners: only accepting cash or in-person payments. This is a huge hassle!

A great tip to succeed is to take the time to arrange for a merchant account to accept electronic payments. This will provide additional ways to conveniently accept payments for your business services and keep you organized as you begin earning an income. We are way past the day of cash payments only. Therefore, applying for a merchant account makes payment processing incredibly easy and foolproof.

Are You Ready to Start Your Business?

Creating a business opens doors to financial stability and limitless opportunities. However, beware the mistakes of the novice! These simple steps will ensure that your new business will be a success and give you peace of mind. No longer do you need to suffer through the process of changing careers when you follow the steps that will lead you into an easy transition into a new business and a helpful merchant account. Good luck!

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AUTHOR Derek Sall

Derek has a Bachelor's degree in Finance and a Master's in Business. As a finance manager in the corporate world, he regularly identified and solved problems at the C-suite level. Today, Derek isn't interested in helping big companies. Instead, he's helping individuals win financially--one email, one article, one person at a time.

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