When you start a small business, it isn’t uncommon to have partners or associates. If you chose to go into business with no written legal arrangements, you might find that tension quickly can build between business partners. The ultimate authority is important in a small business. If limits aren’t stated, partnerships can break down. Individuals will act out of self-interest, making decisions that aren’t in the best interest of the business and potentially leading to the failure of your small business. Half of all small businesses fail within their first five years, according to the Bureau of Labor Statistics. Don’t let your business become another statistic. The business management and consulting experts at Bryant Consultants want to help. That’s why we came up with this list of 10 mistakes you should avoid with your small business.
Mistake 1: No Formal Business Plan
Failing to have a formal business plan can ruin any starting business. If you rush into opening your business, then you probably will miss important steps. Planning, research, and marketing are functional aspects of your business that are necessary and cannot be overlooked.
Mistake 2: No Financial Backing
Struggling to find a lender? If you’ve made any questionable credit decisions, obtaining a business loan can be a difficult task. As a prospective business owner, finding adequate capital could be an issue. You should have three years of prospective cash flow before you start your business.
Mistake 4: No Consideration for Competition
You’ve planned, and financially backed your business, but have you evaluated your competitors? Competition can force your infantile business to cut costs, in ways you can’t afford. Whether you’ve got a brick-and-mortar storefront or operate exclusively online, any business should know what the competition looks like from day one.
Mistake 5: DIY Legal and Accounting
Trying to do all your own legal and accounting work yourself, you’re taking a major risk. It doesn’t make much sense to gamble all of your business’ assets just to save a few hundred dollars. Paying a lawyer and accountant will save you money in the long run, also protecting your personal assets.
Mistake 6: Inexperience
Working in most professions requires building expertise through internships, training, or job experience. If you have no established experience, training, or education as a business owner, then you have no way to show you’re capable of being successful. If you do have applicable experience, training, and education, make sure it’s well-documented, and this documentation is available to potential customers and clients.
Mistake 7: Wrong Employees
Have you hired staff? The type of employees you have hired or will hire can determine the success of your business. Customers will judge your business based on the quality of your employees. If your team members aren’t good fits for the job or cannot work without constant supervision, it’s going to cost you both money and time—two invaluable resources for any entrepreneur.
Mistake 8: No Concern for Location
If you’re going to operate a physical business, finding the right location should be a priority. This means determining an area that isn’t surrounded by competitors, has the accommodations you need, and is also easy for customers to locate and contact you. Visibility is key.
Mistake 9: No Demand
Starting a business with little to no demand is a sure way to fail. Wanting your business to be successful isn’t enough. You must have the support of customer demand, or know how to get the word out through marketing to increase demand.
Mistake 10: You Hate Sales
All businesses do one of two things—sell products or services. Selling is the key part of the story, no matter what type of business you run. Disliking sales can make it impossible to run a successful business. Customer interaction, service, and assistance are key points of any good sales strategy.
Business Consulting Services
Maybe you’ve just opened your business, or your business has been running for a few years that is now stagnant, but our highly rated small business coach at Bryant Consultants can help. Our services can help you refine your vision, establish goals, and set processes in place to evolve your business. Contact us by calling (877) 768-4799. We provide consultation, training, and coaching to help improve the operations of your business so that you can provide exceptional results to your clients. No office is out of reach for us; we will even come to you!
