If you are starting a new business, or are still in the early days of your new venture, it is just as important to know what not to do, as well as what you should be doing. Many people have a long list of things they need to do, but still participate in self-sabotaging activities that minimise the profits they could be making, or worse, lead their business to failure. It is therefore important that you consider the mistakes that other business owners have made, so you can actively work towards avoiding them so you can continue to grow a successful venture.
To help you on your journey and gain an advantage over other businesses, here are some common mistakes to avoid.
Not creating a business plan
A business plan is one of the most important parts of setting up a business, so it is a huge mistake to skip this step. Unfortunately, many people do, and it results in very negative consequences for their business. This is because a business plan sets out the roadmap of your business. It makes you think long and hard about your goals and how you are going to get there, including all the activities that you need to complete, forecasting your finances, obtaining funding, hiring staff, and much more. It is a guide to your growth and success as a business.
Not doing something you love
While making money is very important and should certainly be considered in your business set up, it is just as important to consider what you enjoy doing. Starting a business is going to take up a lot of your time, and you will be doing any business-related tasks. So you want to ensure that the other half of your work is stuff that you enjoy doing. Think about the skills and talents that you have, think about what you enjoy doing and where your values lie. For example, if you love dogs and you love exercising, then you may turn those passions into a dog walking business.
Not setting up your business correctly
Setting up a business can be complicated. But that doesn’t mean you shouldn’t take the time to research what you need to do and make sure it is done, as there can be consequences such as fees and penalties from the Government if you do something incorrectly, or you could sabotage your success with an unforeseen issue, for example, if you did not have the correct insurance in place. Make sure you register your business correctly and set your business up to pay tax. Make sure you obtain all the right licences and insurance policies, especially if you are working with other people or animals. For example, if you take the route of looking after dogs, then insurance for dog walkers will be more suited to you than generic insurance.
Starting a business is not easy. Make sure you avoid these common mistakes to ensure you hit the ground running and set yourself up for success.