Tag Archive | "common business mistakes"

6 Common Mistakes Made by Small Business Owners

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The entrepreneurial journey is full of mistakes, mishaps, and missteps. No matter how good you are in business-ownership experience, you will run into problems most of the time.

To be successful, identify your mistakes quickly, learn from them and prevent the same mistakes from repeating themselves, says Michalowicz Mike, a business expert. Most business owners fall into the same mistakes. These recurrent mistakes could make the difference between owning a viable and successful small business or owning a money pit that has the possibility of leaving you in financial pain for many years.

So, what are these mistakes that small business owners make?

1.  Trying to Get Rich Quickly

 It takes between 15-20 years to achieve overnight success. If you start a business to get rich in a year, you may be discouraged early and prematurely give up on your dream. Know that success takes perseverance, time, and a little luck. Be patient with your business and let it grow. Start something new only if your company stays stagnant for long.

2.  Practicing Negligent Paper Recycling Habits

We all want a clean planet; however, this does not mean that you should toss your confidential documents into the recycling bin. Thieves could scour your recycling bins looking for carelessly disposed of documents with confidential information. Fortunately, there is a secure and environmentally-friendly onsite shredding service that destroys your sensitive documents and sends them to a secure recycling partner for safe recycling.

3.  Assuming Your Business Has No Competition

Even if you have the greatest, latest, and new approach to something, do not assume that your business does not face competition. Competition precedes the direct, obvious business competitors. It is all the alternatives that are available. What course of action should a consumer take if they do not want to use your services and products? The consumer always has the alternative of walking away, which alone is a grave competitive threat.

4.  Being a Weak Leader

The success of your start-up depends on you being an effective and strong leader. However, it does not mean that you have to be authoritarian, but you should not be friendly with everyone. A great leader communicates constantly, inspires his team to achieve the next level, and sets the business course.

5.  Trying to Do Everything

One of the mistakes entrepreneurs make is believing that they can do everything all by themselves. Even though they can do almost everything, they do most of these things poorly. Just like most people, an entrepreneur also has talents. As an entrepreneur, it is your responsibility to identify these talents and fully focus on them. Surround your people who have talents in areas where you are weakest. Great businesses thrive on exploiting various strengths, not trying to master everything.

6.  Lacking a Clear Marketing Strategy

You never know how, when, or where a new client will hear from your company. If you have an unclear message in the market, the prospects will not know what products or services your business offers. Therefore, have a consistent and clear message on all sides.

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4 Errors First-Time Business Owners Make

It is perfectly common to make errors when you run a business, just as it is common in many other areas of life. But if you are keen to try and run your business as well as possible, you are obviously going to want to look at ways in which you can reduce the number of errors you make. A good start here is to take a look at some of the major and most common errors that first-time business owners tend to make, so that you can then develop a strategy for avoiding those yourself. Let’s take a look at four of the most common that you might want to avoid.

Source – CCO Licence

Spending Too Much Too Fast

It is very tempting for newcomers to business to simply spend a lot of money – too much money, in fact, and too fast. This can happen because you are excited about owning and running a business, or because you are working from a mistaken belief that you need to spend a lot upfront in order to make a lot later on. In fact, you do of course need to spend some money, but probably much less than you assume. Be careful not to overspend, and make sure you are not spending it all in one go. A strong budget will help you here.

Managing Tax Alone

Even if you believe you understand perfectly well how to approach tax, you are still going to benefit from getting some help with it. There are so many complications when it comes to business tax, and generally the best approach is just to hire a small business tax accountant to help you out. Many first-time business owners don’t do this, and end up posting an incorrect return or even underpaying on their tax – a big no-no that could land you in deep trouble.

Source – CCO Licence

Not Protecting Intellectual Property

When it comes to your intellectual property, you really do need to lock it down. The last thing you should do is to fall under the spell of thinking that other business leaders will be reasonable and not steal your ideas. In fact, if you are not legally protecting your ideas and product designs and so on, frankly someone out there will steal them at one time or another, and you won’t have a legal leg to stand on. So: use all the legal protections you can from the very start.

Failing To Evaluate The Market

Before you even start trading, you need to question whether you are in a position to sell products at this current moment in time. In other words, is the marketplace ready for you, or are you way out on a limb? It is only by carrying out some genuinely deep evaluations of the market that you can get to the bottom of this, and it’s going to be one of the most important early steps you can possibly take. Be sure you are not forgetting to do this before you start selling, otherwise you could end up regretting it.

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