Starting a small business is an accomplishment in and of itself. But just because you’ve got a great product or service doesn’t mean your business will be a success. So, what separates the wheat from the chaff? Avoiding common mistakes is a good place to start.
As a small business owner, you need to take stock of potential pitfalls that could hurt your bottom line before they have a chance to do any damage. In this article, we’ll explore six mistakes new small business owners often make and offer advice on how to avoid them.
A Laissez Faire Business Plan
When you don’t follow a business plan and allow your business to take its course, you immediately set the stage for failure. The first step in starting any business is creating a business plan. This document serves as a roadmap for your business, outlining your goals, strategies, marketing plans, and financial projections. Without a business plan, it’s all too easy to get caught up in the day-to-day grind of running a business and lose sight of your long-term goals. A business plan is also something lenders will want to see if you ever decide to apply for a loan.
Being Blase About Your Marketing
A lot of new small business owners make the mistake of thinking they can wing it when it comes to marketing. Others mistakenly believe that simply having a website or social media profile is enough to attract customers. Nothing could be further from the truth. Marketing is an essential part of any successful business, and it needs to be given the time and attention it deserves.
Choosing Wrong Structure
Another mistake new small businesses make is choosing a structure (e.g., LLC, sole proprietorship) that doesn’t align with their overall business model. For example, if you’re running a one-person operation, there’s no reason to choose an LLC — a sole proprietorship will suffice. However, if you’re operating in a high-risk industry or plan to hire employees down the road, an LLC may be the better choice.
Carrying the Load Yourself
While it’s a common choice for new small business owners, trying to do everything yourself can lead to burnout as well as several other problems. For one thing, you can’t be an expert at everything. Even if you’re good at a lot of things, there are bound to be some areas where you’re not as strong. This is why it’s important to delegate tasks to people who are better suited for them. Not only will this free up your time so that you can focus on other things, but it will also help ensure that the task is done correctly.
Additionally, trying to do everything yourself can make it difficult to keep up with the ever-changing landscape of your industry. When you’re buried in work, it’s easy to miss out on new trends and developments. By delegating tasks and bringing in outside help, you can make sure that you always stay on top of the latest changes.
Not Building Your Skills
If you’re not continuing to learn and build your knowledge, you’re missing out on opportunities to advance your business. An online business degree can give you the skills you need to succeed. Through coursework in areas like marketing, accounting, and management, an online business degree can help you develop the practical skills necessary to run a successful business. Online programs are flexible so you can learn while you run your business. If you’re interested in learning more, here’s a good option.
Hiring People Who Don’t Fit
In a rush to staff your business, it’s easy to start hiring the first applicants you get. However, this can be a huge mistake. Bringing on staff is an expensive undertaking, and hiring employees who aren’t a good fit for the company culture or who don’t have the skill set required to do their jobs effectively will cost you a lot of money. When interviewing candidates, it’s important to not only assess their skills but also their personalities and whether they would be a good cultural fit for your organization.
Being Financially Irresponsible
Perhaps the most common pitfall new businesses face is not sticking to their budget. It’s easy to get caught up in the excitement of starting a new venture and overspend on unnecessary things, but resist that temptation! Making smart decisions about where you allocate your resources is crucial to ensuring your long-term success.
Starting and running a successful small business takes hard work, dedication, and discipline. By avoiding these common mistakes and taking steps like going back to school and hiring the right people, you’ll put yourself in a much better position to succeed!
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