There’s no magic formula for starting a small business. You have to do your research, have a plan, analyze financing options, and be able to adjust that plan when necessary. While there is no one-size-fits-all solution for entrepreneurs, there are a few startup mistakes to avoid.
Read below to find out more, and don’t underestimate the value of small business consulting, which can help identify individual business’s challenges while working to create solutions.
Avoid These Mistakes When Starting a Small Business
Not Having a Plan
An effective business plan goes beyond ideas jotted down on the back of a napkin! When starting a small business, you need to know your business model, how your startup will make money, and how long it’ll be before you hit your break-even point. A written, concise business plan is also necessary for securing startup funding.
Not Monitoring Your Cash Flow
It can be tempting to let the spreadsheets fall to the wayside when you’re busy with the more exciting parts of your business, but ignoring your cash flow can be a costly mistake. If you’re not careful, you’ll quickly realize that there’s more cash flowing out than flowing in. Accounting programs like QuickBooks make it easy to create and maintain documents to stay on top of your startup business finances.
Not Taking Care of Legal Matters
Deciding between the various legal business structures isn’t always easy, but it’s necessary and will affect almost every aspect of your business, including the taxes you’ll pay and the type of funding you’ll be eligible for. Be sure you register your business, and trademark your business name and logo to avoid losing all of your hard work when another company takes the brand you’ve worked to build.
Don’t Make These Mistakes When You Start Your Small Business
Underpricing Your Services
It may be tempting to lowball your service prices to get your first customers, but you’re setting yourself up for failure. It’s better to price yourself competitively to similar businesses while highlighting what sets your business apart — setting you up to be able to charge more over time.
Not Hiring Help
While it may seem cost effective to try and do it all yourself, you’re setting yourself up for burnout. Minimize the all-nighters by delegating tasks where you’re able to afford it. If you’re not at a place where you can hire full employees just yet, you can take advantage of contractors, freelancers, or temp agency services.
Not Listening to Advice
Sometimes, you have to ignore the naysayers to make your startup dreams come true. However, it’s important to listen to sources like potential customers, small business consultants, and lenders, who can offer valuable advice that will help you avoid disastrous startup mistakes.
ValueOne understands the challenges startup business owners face every day, which is why we strive to empower entrepreneurs with resources and guidance to help them grow their companies. Contact us or call 855 258-2571 today to speak to one of our business experts about what we can do to move your startup forward.