Running your own business may seem like a great choice, but over 50% of new businesses fail in the first year. For some people, owning a business isn’t the right choice and they may enter into it with unrealistic expectations. So, if you’re planning on running your own business or you’re in your first year of business, avoid these common mistakes.
Being a Know-it-all
There’s never a better time to take advice than during your first year of business. There aren’t many first-time business owners who hit the ground running. There are usually kinks to iron out and you won’t do that successfully unless you can learn to take constructive criticism. If you aren’t willing to learn and accept that doing things your way isn’t always successful, your business could go downhill quickly.
Doing it for the Wrong Reasons
There are so many business owners who have started a business because they want less hours and more money. For the first few years it’s likely to be the exact opposite- more hours for less money. It’s time and patience to build a business into a money maker you can rely upon. If you’ve seen Joe Bloggs do it and now, he’s making a killing so you think you can too, you may find you’re sadly mistaken. It takes a least some passion for what you’re doing to go the distance.
Unable to Manage Finances
There will be aspects of your business that you won’t be able to do alone. There are plenty of options out there when it comes to setting up your business in the right way and getting the help you need, including business start-up essentials. One of the main aspects to always get some help with is business finance. It’s difficult to keep an eye on your outgoings and incomings when you’re so busy trying to establish a business. It’s okay to hand this over to a professional and the advice you need when it comes to spending money.
Doing Everyone’s Job
If you’ve hired staff to do a job, let them do it. With a new business, it’s easy to want to be everywhere and do everything but you’ll run your energy out. Sometimes you just need to have faith in the people you work with and create a line of communication that gets the job done well. It’s okay if people make mistakes at first- that’s how they’re corrected for the future. Stick to your own role so others can become masters at theirs.
No Customer Engagement
It’s not enough to just sell a product to a customer. You need to find out why it was bought, if they were pleased with the outcome and what other products your customers are interested in. You should have a relationship with all of your customers, so you can predict where they want your business to go next and create lifelong commitments.
It’s never plain sailing in business, but if you can get through your first year, you’ve got a good chance.
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