Running a small business isn’t always easy.
And like any new endeavor, you’re likely to make mistakes. Fortunately, there
are many people who have made them before you — so you don’t have to. From
being disorganized to skipping out on important protections, consider the
following to help you avoid bad business decisions.
A Lack
of Brand Awareness
Business recognition is crucial when it comes
to bringing in customers. And brand awareness is the most critical component
for driving business growth. The more familiarity
consumers have with your brand, the more likely they are to purchase goods or
services from you. But as a new business owner, this can feel overwhelming. First,
know that a solid marketing strategy is one of the most effective methods to
get your name out there. This is why it’s highly beneficial to connect with a
firm like Glamour
Social to ensure you have a team of pros helping you formulate and
execute the best approach to build your brand.
Not
Having Enough Money
While not all businesses require a huge chunk of
capital, most of us will need a few thousand dollars (at minimum) to get
started. It is not uncommon for new business owners to underestimate the amount
of cash they need to get things moving. If you find that you need more money
than you have, research the many grants and funding opportunities available via
government, non-profit organizations, and private funders.
Being
Disorganized
Your organizational skills are worth refining. This applies to all aspects of
your business, but especially when it comes to money matters. If you know that
organization isn’t your forte, find good financial reporting software early in
your business’s life. Online tools for accounting not only help you keep up
with current cash flow but they give you the ability to track and compare
business fluctuations over time. This valuable information assists with
accurate sales forecasting that’s used for better ordering and inventory
management, as well as employee scheduling.
Hiring
Friends and Family
Olivia Pawlowski, a contributor for business
loan provider OnDeck, notes that there are pros and cons to hiring friends and family. As
a startup, the people around you can serve as support, but it's more difficult
to set boundaries with people with whom you have an existing relationship.
Unless you absolutely have no other options, hire someone from outside of your
inner circle. This will ensure that you are established as the boss, and a true
employee will be less likely to try and take advantage of you.
Failing
to Implement a Business Structure
Your business structure should be something
you establish early on. Doing so can put legal protections in place that can
reduce your liability in case you’re taken to court. For many small
businesses, forming a limited liability company (LLC) is a smart decision.
Depending on what you do and your purpose, you might also incorporate it as a
nonprofit. If you decide to register LLC in Illinois, consider working
with a formation service to help expedite the process.
Being
Impatient
Patience is one of your most valuable assets
when you run a business. And if 2020 taught us anything, it’s that being
patient has rewards. Not rushing things along will have a positive effect on
your work culture and can help you implement a long-term business model.
Plus, you’ll be a better boss and will likely make fewer mistakes throughout
your career.
Skipping
Insurance
You already know that you need workers’
compensation insurance, but if you aren’t also investing in commercial auto,
professional liability, and other types of business-specific insurance, you are
doing yourself a disservice. Insureon points out that most states require businesses to have more
than just the bare minimum. Making sure that your insurance matches your
potential needs can save you from a financial disaster if something goes wrong.
Running a business means learning as you go.
But there are some lessons that can cost you more than others. If you are still
looking for information about mistakes that you can avoid, don’t be shy about
reaching out for a mentor. Your local Chamber of Commerce may be able to help
you find a seasoned professional or consulting service to help you help your
business thrive.
Image via Pexels
About the Author:
Amy Collet is the creator of Bizwell.org, a website that helps professionals and entrepreneurs build and strengthen their personal brand.
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