10 Business Mistakes
I meet and work with many good business people, entrepreneurs and visionaries. However, not all businesses succeed, and many can have quite stressful periods, especially early in the business's life.
This post catalogues some of the mistakes businesses make whilst offering solutions.
If you're about to start a business, here are the potential pitfalls to avoid.
1) Lack of research - don't expect to build it, and they will come. Instead, you need to establish the scale of potential for your product or service. For example, is there someone already in this space, how are they doing, and have you identified your unique selling point?
2) Going into business with someone - don't let me put you off a partnership. However, you need to have a written legal agreement between you and have planned what happens if one of you wants to leave. For friends/family, this is even more crucial!
3) Lack of motivation - you will need to throw everything into a business at the start. You need to ensure you have the energy, capacity and desire to make it come alive.
4) No business plan - A business plan is essential; this will help develop the business from planning to the beginning of trading and beyond. Crucially the business plan will determine how robust the idea is.
5) Lack of money - again, this is where the business plan will help to estimate the potential financial reward. Please don't do what many do, which is ignore this, work themselves to exhaustion only to find the business doesn't have the ability or future potential to deliver a solid income.
6) Not doing the difficult stuff - with a business, there are a lot of roles and plates to spin. Don't be tempted to do the things you're great at and ignore tasks you don't understand. For example, you may be a great salesperson but terrible with paperwork. Lack of attention on paperwork and accounts could take you out of business.
7) Not putting aside tax - you need to set aside tax contributions as you get them. Having HMRC demanding money that you don't have would be a terrible situation.
8) Turnover as opposed to profits - don't get too excited by rising turnover and sales; what matters is your profitability.
9) Not being proactive with customers - you need to be good at marketing and selling to customers. Maintaining good customer service is essential as it is easier to get a returning customer than the cost of acquiring new ones through advertising.
10) Hiring the wrong staff - once you're hiring staff, you're a manager rather than doing the job yourself. You need to hire the right ones, keep them motivated, train them and review their performance.
About
Based in Loch Lomond, Paul Saunders Marketing works with clients throughout Scotland, providing marketing consultancy and creative digital media for businesses, charities and organisations of all sizes.
Services include marketing, commercial photography, brand design, website design, video production and social media, events & PR. Call Paul on 01360 661029 or get in touch via the contact page to find out more.
I hope you have found this blog helpful! If you would like any advice about growing your business, please get in touch.
