Starting your own business can be an exciting yet unnerving time. The decision to move from working for an employer to working for yourself is a risky move. You may have the greatest business idea the world has ever seen (in your opinion), but failure to run your business properly will mean your dreams of success will be broken.
Take heed of the following pitfalls many business owners fall into and set yourself up for success.
When starting a business, you will often have to make a loss before making a profit. For example, if you make and sell furniture, you will need to purchase the materials before you sell the finished product. Running a loss is common in the first few months of any business, and you need to take this into account when setting yourself up.
You need to have sufficient capital when beginning your business, and budget for any losses. You still need to pay your household bills and provide for your family, so it is wrong to mix up your business and personal accounts. Without budgeting correctly, you are going to run out of money and incur debts on any bank loans you have taken out.
So, avoid financial hardship by knowing what you need to spend on your product, factor in the loss, and use your money wisely. Remember you will need to pay your taxes as well, so even if you do make a profit, don’t spend the money on something you don’t need just yet.
Having no focus
Entrepreneur Sabri Suby is now a very successful businessman, but he had to learn from his mistakes to make the money he earns today. One of these mistakes was focus or lack of it, and this is something any business owner needs to be wary of. Know what you are selling, and understand who your target demographic is. Don’t be sidelined by other projects, or business ideas, to the detriment of your original start-up plan.
Your business plan can be flexible, but use it as a roadmap. Veer too far away from your original idea, and you are going to get lost, becoming one of the many businesses who fall by the wayside. Spend time before start up getting to know the market you are selling into, and prepare for the long and short term in moving forward.
Expecting the phone to ring
Your business has begun, and you have the phone at your side ready to take those important calls. Yet it isn’t. Why? The first thing you need to ask yourself is, do people know I exist? You need to put yourself everywhere to succeed. Send out business cards and flyers to as many places as you can. Get on the internet and use your social media channels to promote yourself. Create your own website to showcase your product.
When your business has started, you need to shout it from the rooftops and tell the world why they need you in their lives. To succeed in business, you need to be louder than everybody else.