Top 10 Small Business Start Up Mistakes
Millions of people each year start up small businesses around the world. And, the vast majority of them will encounter challenges along the way. By learning what the most common mistakes made by new small business owners, you can work to avoid them as you establish your own small business.
Here are the top 10 small business start up mistakes to avoid:
Lack of Market Research: Before you start a new business, be sure that you complete a thorough market analysis of the industry, the local and regional opportunities and the costs involved with the opportunity. This valuable research can help you to avoid selecting the wrong business opportunity and can also ensure that you correctly price your products and services.
Lack of Accurate Records: Records are crucial for any small business. Some of the most important business records include tax forms, tax payments, expense logs, employment documents and legal documents. Without accurate records, you are placing yourself and your business at risk.
Lack of Capital: Many small businesses begin without sufficient capital to sustain them. Be sure that you have taken an accurate assessment of the required start up and operating capital for your new business and add additional funds in the event that you run into unforeseen challenges.
No Merchant Services Capacity: Many consumers prefer to make payment for their products and services using a credit card instead of with a check or cash. So, if your business does not accept this form of payment, you are limiting your pool of potential customers, and ultimately costing your business revenues.
No Business Plan: While this would seem to be common sense, many business owners fail to build a business plan. And, without a business plan, you have no clear cut business direction.
Lack of Suppliers: Nothing is more frustrating to customers than not being able to obtain the products that they are seeking. Your business needs to establish working relationships with reliable suppliers so that you can consistently provide products to your customers on an ongoing basis.
Over Staffed: Too many employees can place a large financial strain onto your business. So, be sure to under staff until you are comfortable with the number of staff required to manage your business on a day to day basis.
Lack of Employee Supervision: While we would love to trust every employee we hire, leaving employees alone without supervision can open yourself up to theft or lack of work due to personal distractions of the employee. Be sure to install camera equipment in your business if you are unable to be present during all working hours to monitor activity.
Ineffective Hiring: Choosing the wrong employee for a job can be costly. Spend time in the interview process and use systems to improve your chances of a strong hire.
Lack of Business Security: One of the largest costs that many businesses incur is employee theft. Be sure that your business is protected by use of cameras, software programs and cash register programs that monitor activity to reduce your risk of loss.