Mistakes Business Owners Make When Starting Out

Entrepreneurship

 

Starting a new business is no small feat. You enjoy the products and services you have to offer to your customers, but sometimes you feel overwhelmed. This is normal. Being resilient is a big asset to any business owner. Here are some of the things that keep an owner from being able to rebound from the everyday challenges faced when embarking on business ownership.

 

Do not fail to plan. Failing to plan is almost the best way to plan to fail inadvertently. It is easy to make a business plan, and there are plenty of free templates available online. Your plan guides your growth and helps you stay on track with your goals.

 

Choose the right type of business formation. You may prefer to invest in a corporation rather than go the inexpensive route of a sole proprietorship. There are legal and financial benefits of becoming a corporation or an LLC. Check with an attorney or an accountant before you launch your new venture.

 

Do market research. Sure, your friends and family will be happy to tell you how good your candy business sounds, but you need a well-defined target market. Otherwise, without knowing who you appeal most to you will miss reaching these important clients.

 

Do not wait too long to hire the right people. You could end up feeling burnt out and overwhelmed. This might have started out as a way to save money, but in the end, it might cost your business. Hire interns to help answer texts, messages, and e-mails.

 

Delegate the small tasks like packing items to be mailed to your helpers.  Also, make sure you hire the right people. Find those that are compatible with your company’s culture. Do a diligent job of interviewing people. It can be easy to feel like you are so busy that you have to hurry up and hire but take enough time to find people that have the right skills and the right feel. You want to work with people who like you and vice versa.

 

Find specialists to help when you need them. Be careful of trying another thing to keep your budget on track. Be careful of trying to do jobs you are not qualified to do. You can do much better outsourcing bookkeeping jobs if numbers are not your thing. You might be better off hiring an attorney to draft various policies for your growing business or an accountant to file your taxes than trying to do them yourself.

 

A recent Forbes article included great advice from the co-founder of Sheaff Brock about dealing with clients when building your business.

 

Your business is you but remember that it is not all about you, it is more about your customers.  You will want to understand them so that you can provide them great service. You need to know about them and what they need from your business.

 

You can find out what your business’s customers are like by asking people in the same type of business as yours for some advice. Do you know a lot about the customers doing business with other services in your industry? Find out what you can before you go all the way and open your business.

 

Advertise. It can be easy to think that your business just needs to open its doors to start flourishing. Customers have to know where to find you. They also need to know that you exist. Advertising is great when done online or on social media but you also want to send out fliers and place ads in newspapers.

 

Whatever you do, make sure you also have a website. Did you know that not having a website is one of the biggest downfalls of new companies? Close to half of all small business owners do not bother with setting one up. You do not have to spend thousands on professional web design. You can set up a bare-bones website using any hosting services point and click tools online. When your business starts succeeding, you can revamp it later on.

 

Sheaff Brock is a great example of a business that started early this century and has grown by applying solid business principles like the ones in this article. Innovative Portfolios is another example of another thriving business in the financial industry that has grown by following tested business principles. Owning a business can be thrilling but do not forget that every business has its ups and downs. Economic factors and consumer confidence are always fluctuating. Join a support group or an organization for local businesses. You will want to be able to confide in people who understand and who can provide you with ideas for success.