If there is one thing that links all humanity, it’s the lack of perfection in each of us. No matter what you attempt, whether its a diet or a starting a business, you can be assured that mistakes will be made. We’ve researched and found 6 major small business mistakes. Avoid these and you’ll likely improve your odds of success!
Small Business Mistakes: America’s Top 6
Some ventures are more forgiving than others, but when starting a business, the steps you take and the mistakes you make will determine your success. Part of the problem lies with the complexities of running your own company. Other mistakes come from…
- trial and error, or
- external circumstances.
You can save yourself a lot of headache and hassle if you memorize these six common mistakes and strategize how to avoid them.
1) Rushing In
You are excited about starting a business and being your own boss, so you rush…
- to order business cards,
- send out an email blast, and
- order supplies.
However…a lack of planning will destroy your dream before getting it off the ground.
Planning your strategy and delving into the nitty-gritty details of your operations can be tedious, but unless you know what you will encounter, you will be flying blind. Avoid small business mistakes by first starting with a business plan, then moving into the financials, and then ending with the marketing plan.
2) Being Short-Sighted
If your business plan is only thinking about the next few months, you probably aren’t going to be around in a few years.
You should have a variety of goals in place:
- for financial resources,
- to product expansion,
- marketing themes,
- digital management software, and so on.
A priority should be the finances.
Starting a business takes a big investment, and if you only have the funds to last a few months, you need to work on securing additional funding before you go any further. It can be tough to secure a traditional business loan when you are a fledgling company, but you may be able to turn to an investor like Mark Stevens for a financial boost.
Venture capitalists look for business plans that have a lot of potential for growth, as they make money whenever you start making money. Do some research about what you can do for funding for your long-term goals.
3) Being Timid
Even if you have a great product and you firmly believe in what you are doing, a lack of appreciation for the market and what you bring to it can cause you to lose confidence in your venture.
The fear of failure holds many new business owners back. In an effort to make the public like them and their products, they grossly under-price their services or products. And, this becomes extremely difficult to overcome. The market won’t appreciate the value you bring to the table and will resent your price hikes when you finally realize you can’t make ends meet.
Do your market analysis to determine a fair but profitable price point for your services, and stand your ground. Make your service exceptional, and you can earn consumer loyalty.
Being the boss doesn’t mean you have to do it all.
While you may not want to hire employees in the early months, you should consider the benefits of incorporating technology into your operations. There are many affordable but effective small business management software systems (desktop and cloud-based) that can help with your:
- inventory, or
- reporting needs.
You can also outsource thinks like social media management to a contract employee, as managing your online presence can take a lot of time away from what you need to be doing. And yes, you do need to have an online presence.
Related: 25+ Great Passive Income Ideas
5) Backing Down From Marketing
In today’s business world, marketing is so much more than postcard mailers and word-of-mouth. Although these are still very important, you can get your message out to the masses through Internet marketing.
You can’t afford to let the business grow itself. You need to know who your ideal customer is and adapt your marketing strategy to pull them in. The data is overwhelming concerning the social media and online browsing habits of consumers. Find someone that can get you set up with a consumer-friendly website and social media presence that is active and publishing relevant and interesting content.
Related: How to Start a Blog With Bluehost
6) Spending ‘Whatever’
As a small business owner, you can neither afford to spend too much nor too little.
There can be a fine line between what your business needs and what you want. And, by creating a business budget, you create the parameters for fiscal responsibility. Research major purchases, always considering that your small business may not need the latest and greatest. However, you can’t afford to buy cheap things that won’t last or to avoid spending money on marketing items.
Invest your funds wisely, but don’t go on a spending spree.
The Top Small Business Mistakes – Are You Making Them?
Making mistakes is part of the business ownership process. Learning from them is what will set you apart and head you towards success. If you find that you’re making some of the mistakes above, stop ignoring them. Change your habits, fix your mistakes, and let your business thrive!
There’s nothing better than being your own boss. Do it without these blunders and I bet you’ll start to love what you do all over again!
My name is Derek, and I have my Bachelors Degree in Finance from Grand Valley State University. After graduation, I was not able to find a job that fully utilized my degree, but I still had a passion for Finance! So, I decided to focus my passion in the stock market. I studied Cash Flows, Balance Sheets, and Income Statements, put some money into the market and saw a good return on my investment. As satisfying as this was, I still felt that something was missing. I have a passion for Finance, but I also have a passion for people. If you have a willingness to learn, I will continue to teach.