Everyone makes mistakes and its how we learn and new business owners are no exception to this rule.
Here are the top 10 mistakes that nearly all business owners make :
1. Thinking too small or too big
If you think too big, you can wind up biting off more than you can chill. Alternatively, if you think too small, you may be missing out on valuable customer opportunities. It is important to be aware how much business you can handle and position yourself for expansion.
2. Losing your focus or drive
Too many new business owners get caught up in the excitement of opening new business and overwork themselves too much too soon. Remember that opening a new business is a long term project and you need to stay focused. Yes you’re going to work long hours but be sure to take breaks and not overexert yourself too soon.
3. Taking on too much by yourself
You cannot do everything on your own and if you try to then you can lose your energy quickly. It is always a good idea to seek help of others. Such as employees or professional services. Then you can focus on your own goals and not worry about the smaller details.
4. Sacrificing your personality
Your business is an extension of you. As a business owner you will likely work long hours and when you are not working, you will probably still be thinking about your business. In order to make this kind of commitment you need to love your business and know that it is a part of you.
5. Not tracking your advertising
When you spend money to advertise your business it is important to know if your money is being spent effectively or not for example it is wasteful spending thousands of dollar for a billboard that never generates new customers. The only way to know if you’re advertising is affected is to track it.
6. Investing too much in one client
New business owners are often quick to rearrange their entire business structure for the first big client but make sure not to put all your eggs in one basket. Not every client will last forever and you do not want to be forced to close your business if you lose that one big client.
7. Going against your gut instincts
When you open a new business you will want to heed the advice of others. But do not let it overshadow your gut instincts. When all is said and done you are the business owner and you need to trust your own ideas.
8. Not getting involved in the community
Attending local events and becoming the active member of the community are great ways to get free attention to your business. Networking is a important part a building up good business relationship that can directly lead to customer opportunity.
9. Managing Employees poorly
Poor employee management can be detrimental to a new business owner. Managing employees is not something that comes naturally to everyone and creating bad relationship with employee can create serious problems for a business owner.
10. Trusting that sign contracts will be honored
Although any documents that contains an agreement and signatures is technically and legally binding contract. In order to enforce it you will have to go to court. This can cost thousands in legal and a waste of business owners valuable time. Business agreement or relationships that are based in trust. If you keep quality relationships, trustworthy client then you will not have to worry as much about what is written on paper.
Well there you have it if you make a conscious effort to avoid these common mistakes then you will find it much easier to open and operate your new business.