Common Small Business Mistakes

July 29, 2016, 6:10 pm Posted by: Lori Askins Category: Financing & Investing

Getting a business up and running is a tricky thing. And if you run a small business, you can’t make a lot of mistakes, or else your startup won’t make it past its third birthday. Everyone knows that success is not built overnight. It is a ladder that is made for the errors you commit and the failures you face until you learn from where you go wrong and make it right. However, very few realize the easier path: why make the mistakes when you can avoid them in the first place?

What you need as a successful business person is more than optimism and faith - you require good planning. A good entrepreneur knows to arm himself or herself with a map marked with any pitfalls he or she might encounter on his or her journey. And that is what this article is - your road map.

The biggest mistake you can make is going in undercapitalized. This will be the iceberg that will sink your ship. If you're just starting up, or launching a new product, or even opening up a new branch, you have to make sure that you have enough in the bank to support you and your business even if your venture fails. Do you need to ask yourself questions at every stage: what your main aims should be? Which aspect of the business needs more money? Do you have enough to get your business through the pitfalls? When you own your company, it is easy to be distracted by the easy way out. You will be swayed by ventures that promise to elevate you in a few months, but those aren't always the best way to go. Keep yourself- and your money - focused.

Be it your advisor, your manager or your investor, it is always a bad idea not to have a backup. Your staff and your funders might be Angels In Disguise, but that doesn't mean you can’t be vary. Many a business has gone down because they made the folly of entrusting the wrong person will all the responsibility. Suppose your supplier decides to drop you, or is unable to deliver on time. Where does that leave you? Scrambling to meet deadlines by begging other suppliers to finish your orders- and most probably losing a lot of customers and finances. You and your investor might have a lot of things in common, but that doesn't mean you'll share the same business views. Choose multiple investors, who share your voice in your company so that if one goes wrong, the other is there to support your fall.

To give your company a boost, you need to put it into the spotlight. And to do that you need to throw focus on some areas more than the others. For starters, don't ignore the most profitable aspect of the business. If your burgers give you money, don't go throwing your sandwiches around. Focus on the burgers and improve them. Don’t let the others gain an edge; bring yourself to the attention of your intended clients. Make yourself a website or an app, preferably both so that your customers can get to you easily and urgently.

Make a plan, and pay attention to how your business’ successes and how to re-invest to continue growing. It is your business and and your plan. Stick with it and it won’t lead you astray.

Have you made any business mistakes? Do you have any suggestions for others so they don’t repeat your errors? Comment below.

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