For anyone thinking of starting their own small business, it’s important to be aware of a few major mistakes that others have made, so you can avoid them and be better equipped to succeed.
Here’s a list of small business donts you should stay away from:
1. Starting your business for the wrong reasons
It’s one thing to want to be self-employed because you don’t want to report to anyone, but it’s another thing to start a small business just so you won’t have a boss anymore. You need to make sure that you also have a passion for whatever business you’re getting yourself into so you can handle the level of stress that comes with owning a business. Bosses are cranky and demanding for a reason, and if you want to run a business to avoid bosses, you’d be surprised to know it could potentially turn you into the type of person you hate if you’re not focusing on something you’re passionate about.
2. Lack of Planning
Having fantastic ideas and a passionate zeal for what you want to do is great, essential even, but nothing leads to success better than careful planning. Now that you’re excited about this new project you’re about to start, make sure you that sit down with a business plan expert to guide you on writing a meticulous description of your business, your vision for it, a study approach of your competition and target costumers etc…another major factor to consider is the right marketing strategy you will use to attract people to your business.Just because you may be running a business on your own doesn’t mean you have to do everything by yourself. Experts, consultants, even online networks can help you get set up at the start.
3. Insufficient Capital
It can be easy to underestimate how much money is required for a given business to succeed because a lot of people only focus on how much they need to start their small businesses but don’t take into consideration the amount of funds needed to stay in business. Also, it’s hard to predict how long it will take for the money to start coming in so you’ll need to be prepared financially to support your business for a few years until money starts flowing in. Is that something you can do? A great tool that helps you predict how much money you’ll need for your particular business is the ‘business startup calculator‘. If it doesn’t look like you can make ends meet while you get off the ground, research investors, loans and other options, then build a solid plan to make sure you pay back any debts on time.
4. Location, Location, Location
Even the best managed business can fail if location isn’t taken into account. If you’re gonna sell food for example, start your small business in a place where a lot of people love the kind of food you’re offering, make sure people can access to your restaurant easily and in a safe area. Also, choose an area with low competition but high traffic, maybe you want to be the only Italian restaurant on a popular block rather than nestled in little Italy with all your competition. I think taking your time to visit different locations and getting to know the people living there is of the essence before deciding where to take your business.
Small business require BIG effort to become successful, so don’t forget to plan ahead with the right kind people to guide you throughout the whole process. Remember that while you should always dream big, you’ll need to put the amount of work it takes to make those dreams a reality. Feel free to add your two cents in the comments section below, including other small business donts that weren’t mentioned.