If you have just started a new business, then read on. Below are 6 mistakes that are commonly made by new entrepreneurs – and how to avoid them.
- Only Theory, No Practice.
If you have all the required knowledge to run your business, it is still very important to have an idea about the market that you will be doing business in.
It is a good idea to work in a similar business for a few months to get a feel for the market and observe the way in which that business is run before taking the plunge.
This will help you to avoid many of the mistakes they make during your startup process.
- No Idea of How to Manage Time.
It is important to get the maximum work done during your regular office hours, with the minimum of time and expense.
If that means delegating work to your employees or even negotiating with your suppliers or vendors to get a better deal, then do it.
If you have taken too much work yourself, while your employees just stand around, then you could be putting too much pressure on yourself. The quality of your products and services will suffer as a result.
- Running Out of Money and Motivation.
If you have started your business on a shoestring budget without planning for future funds to run the business, then you could be facing severe cash flow problems within a short period of time.
This could hamper your business financially and you mentally; and you could soon lose the motivation you need to run your business successfully.
Your business plan should have a provision to arrange for financing on a regular basis until your business becomes self-sufficient.
- Not Being Able to Reign in Expenses.
It is very important to control your expenses. Not being able to reign them in will result in all your income being washed away, and will result in serious cash flow problems.
This is why it is important to keep strict control over your expenses. It is also important to make a budget, so that you can allocate funds to the different departments in your business.
This will enable you to plan your expenses in advance and arrange funds when they are required.
- Not Enough Advertising.
Your small business exists in order for customers to come do business with you. To achieve this, you will need a steady advertising campaign so that your small business remains in the public eye.
If you have not set funds aside for advertising or a marketing campaign, then it will not matter if you have the best products in stock – because you will not find any buyers for them.
Set up an advertising budget before you start your business – and keep on advertising on a regular basis to let people know that you have what they are looking for.
- Not Filtering Your Clients.
As in any business, there will be some clients who will be hell bent upon not letting you earn any profits, or who will waste too much of your time.
Learn to let go of such clients by refusing to give in to their demands, or tell them tactfully that they are wasting their own time as well as yours.
Once you are free of clients like this, then you will be able to concentrate on less demanding clients that pay you well.
Running a successful small business isn’t easy. But by avoiding the 6 common mistakes above, you will put yourself ahead of the game!
