Often, we find ourselves making mistakes that we could’ve avoided, and while it’s true that experience is a great way to learn, you don’t have to get burnt before realizing that fire is hot.
Do you want to blindly follow in the footsteps of those who fumbled? Or would you rather strip that losing formula to its bare components? If you’re going for the win, read on to discover five mistakes that could get in your way.
- Recruiting Willy-Nilly
While it’s a good idea not to rush when recruiting staff, it’s an equally brilliant move to not take too much time putting your team together. Take too long, and your business won’t grow fast enough. Move too quickly, and you may end up hiring the wrong people, losing loads of money in the process.
If you already have a candidate, put them through an interview. Consider what they bring to the table, and put some serious thought into this. In these early stages, it’s worth using virtual office services to connect your team. This allows you to enjoy the perks of an office environment without the massive overheads, thus allowing you to invest more in your employees.
There’s nothing wrong with getting excited about your new venture and wanting to dive in headfirst, but you must always be prepared to listen to the advice of those more experienced than you.
See if you can find someone unbiased to act as a mentor. If there’s no-one in your immediate circle who springs to mind, consider joining a small business group mentoring program. You’ll learn about all the obstacles they faced on their journey and how you can avoid them.
With all the legalese you’ll come across, you might as well learn a thing or two about the laws you’ll be at the mercy of. If learning about limited liability and authorized capital is too much, consult a business lawyer.
The earlier you acquaint yourself with corporate law, the better your business will perform. Ignorance is no excuse for breaking the law, so avoiding legal terms, systems, and methods will not work in your favour as a business owner.
How good are you at accounting? Money is the lifeblood of your business, and as such, you need to pay attention to how it comes and goes. Knowing the dynamics of your cash flow will save you a lot of trouble in the future. Whether or not you have someone handling your bookkeeping, you must learn the basics of accountancy.
- Winging It
Don’t make the mistake of improvising. There’s a lot at stake here, so it’s important that you have a comprehensive business plan to guide you in everything that you do. From your business launch to expansion, it should all be clear to you.
This will help you avoid surprises, which in business, are rarely a good thing. Work from samples for business plans online or talk to a business coach to help you draft one – whatever it takes to get some direction.
- Neglecting Marketing
Even governments spend money on marketing, so why shouldn’t you? Brand awareness is key to gaining customers, and marketing is the best way to increase brand awareness.
Yes, this is an investment but there are many free marketing tools like social media and word-of-mouth. Do some market research to see how you can package your marketing to suit your target market. That’s if you don’t want to end up as a cautionary tale.
Avoid these dangerous newbie mistakes, and you’ll have a clearer path along which to forge your success.