Starting a new business is a thrilling experience and a huge opportunity to learn and grow. Obviously, if you have just launched your first business venture, you will be looking for advice in terms of how to maximize its success and keep it running optimally for many months and years to come. In an effort to help you achieve these goals, here is a list of the six most common mistakes that business owners make so that you know what to avoid right from day one.
Not putting enough effort into their business plan
Some first-time entrepreneurs are so pumped to get their enterprise up and running that they fail to dedicate enough time to plan its launch and how to ensure effective operations over the course of the first few months. Failing to plan is planning to fail! Give yourself at least a few months to work tirelessly on this all-important document, being careful to include all relevant components. A thorough, well-written business plan is also a critical tool if you intend to seek out financing in the form of a loan or by convincing investors to jump on board.
Not monitoring the bank balance
Budgeting for your business is just as important as budgeting for your household. Unfortunately, crafting a business budget can be a much bigger challenge because there are just so many factors to consider. If you are lacking the financial know-how to keep a finger on the pulse of your business capital, consider enrolling to take online MBA courses. Along with learning how to budget and make well-informed financial decisions, you will also touch on organizational development and global business, as well as improve your leadership, communication, and networking skills.
Not putting enough resources into the hiring process
The team that supports your business growth and works to uphold the establishment’s values is arguably the most crucial component of its success. As such, it pays to put extra effort, money, and resources into making sure that you hire the right people. Some business owners will opt to outsource their requirements to a recruitment agency, while others will take a more DIY approach and invest in advanced recruitment software, including applicant tracking systems and CRMs.
Not trusting in their employees
Micro-management is an error that almost all first-time business owners are guilty of making. Their intentions are often pure in that they are truly passionate about ensuring the success of their business and, as a result, think that they need to be involved in every aspect of the company’s operations. Unfortunately, micro-management can make it difficult for teams to put their skills and know-how to proper use and can lead to job dissatisfaction and a high employee turnover.
If you have taken the time and used the right tools available to hire the right employees, there is no reason why you cannot trust them to do their jobs. This will avail you plenty of time to focus on your own duties, such as keeping the business on track to achieve its goals and seeking out new opportunities for growth.
Not embracing the digital economy
Do not fall into the trap of opening up a bricks and mortar store and neglecting to develop a formidable online presence right from the start. As COVID-19 has proven, embracing the digital realm is no longer a luxury – it is a necessity for business survival. Begin by creating a website that prioritizes user experience, before turning your attention to social media and building up a following of existing and potential customers. As demand grows and profits start to rise, you can even investigate creating an e-commerce store in conjunction with your traditional store, to maximize reach and convenience for customers.
Not investigating the different financing options available
The vast majority of entrepreneurs will need to look for financing/funding for their enterprise at some point or another – either to get it off the ground or to help finance its expansion. When this time comes, most will be under the impression that applying for a business loan is the only viable option, but that simply is not the case. Be sure to research the various alternatives to discover which solution is right for your organization, paying special attention to government-backed loans and funding programs.
Now that you know what to do (and what not to do) when it comes to securing the longevity of your new business venture, you can step up and take the helm with confidence. Good luck!
Disclaimer: This content does not necessarily represent the views of IWB.