If you’ve joined the “start-up club”, you’ve made the most challenging move. After all, it’s a decision that people wrangle with due to the worries and risks associated with new businesses.
Of course, this is just the tip of the iceberg. You may have made your decision, but in reality, this is just the beginning. There are plenty more decisions set to come your way – and plenty of mistakes await around the corner.
In truth, mistakes will always be made – and you will learn from many and help your business become stronger. Today, we will take a look at some of the most common in a bid to sway you away from these and give your business the best chance of success.
Mistake #1 – You don’t understand the hidden costs of business
There are plenty of costs that go into setting up a business. It can be easy to be caught out from the material costs of setting up an office or shop to the more hidden costs that come with things like business insurance and marketing. It doesn’t matter what industry you are involved in, either. Whether you are setting up as a gardener without office space, or an accountant in the opposite situation, the hidden costs will come thick and fast.
Of course, this can eat into your budget – and set you back considerably. This is why it is so important to be aware of all the costs associated with your business and to factor them into your budget from the very beginning.
Mistake #2 – You’re too focused on the short-term
In the early days of your business, it can be easy to get caught up in the here and now. After all, you’re likely to be focused on getting your business off the ground and ensuring that it is a success in the short term.
However, this can often lead to problems further down the line. If you’re not thinking about the long-term, you could find yourself making decisions that are not in the best interests of your business – and this could have a negative impact further down the line.
For example, let’s talk about pricing. The “easiest” way to attract new customers is to lowball your competitors. This might work very well initially, but as time goes on, you are tied to this principle, and it can become challenging to make your business viable for the long term.
Mistake #3 – You underestimate the paperwork
This is why it is so important to make sure that you allow plenty of time for the paperwork side of things and have everything in place before you get started.
Mistake #4 – You try to do everything yourself
Following on from the above, it can be tempting to try and do everything yourself. After all, you’re likely to be on a tight budget, and you may not have the workforce to delegate tasks to.
However, this can often lead to problems further down the line. If you try to do everything yourself, you could find yourself spread too thin, which could negatively impact the quality of your work.
Don’t be afraid to outsource your work. We’re not saying take on employees from the word go, but at least think about using external professionals from time to time so you can sink your teeth into the main bulk of the work.