Starting a small business involves making a lot of very important decisions. To be successful, you have to have a plan. While there is no fool-proof plan for success, there are some very common mistakes that small business owners should avoid at all costs.
1. Not setting goals
Every business owner should have a clearly defined set of both short-and long-term goals. They should also be measurable, and the short-term objectives should be designed to help you achieve the long-term goals. By having a clearly defined plan in place, you can spend less time “thinking” and more time “doing” throughout your work day.
2. Avoiding new technology
Small business owners sometimes feel that the time spent in learning new technology could be better served in performing another task that puts money in the bank. Others are simply afraid of change. By making the transition to more advanced technology, business owners usually save money over the long-term. For example, the Big Red Cloud accounting software streamlines several processes to save time and money while boosting customer loyalty simultaneously.
3. Ignoring the “Double Helix Trap”
According to Forbes Magazine, a fundamental mistake that first-time business owners make is ignoring the “Double Helix Trap.” In the early stages, organizations often spend an enormous amount of time with marketing strategies. Then once business is booming, they tend to slack off. But the boom rarely lasts forever. So, eventually, they return to a full-on push to flood the Internet with another marketing campaign. Finding a healthy balance reduces this “boom or bust” cycle and helps the business owner to plan ahead more efficiently.
4. Undervaluing your products and services
Getting that first sale is an incredible feeling that most business owners never forget. It can be addictive, too, which is a good thing. But when you lower your prices just to land a sale, perhaps due to a lack of confidence or a fear of failure, you might slowly begin to resent the very business that you are trying to grow. Know the value that you provide, and charge appropriately.
There are a lot of significant income tax benefits that come with owning your own business, and this sometimes leads to a false sense of security. With so many opportunities for tax deductions with business ownership, many people go overboard by renting expensive hotel rooms and eating at trendy restaurants. Please avoid this common mistake. Big Red Cloud accounting software can help you keep track of these expenses more efficiently.
6. Doing everything yourself
Many small companies begin with very little financial capital, but you can’t possibly be an expert in logo design, social media management, and accounting processes all at the same time. Just because you can do something does not mean that you should. Delegating can be scary, but business owners always have to cross this bridge eventually. Learn to delegate sooner rather than later.