Starting a business could be the best thing you’ve ever done. You get to work flexible hours, you get to call the shots and you get to spend your time working on something that actually means something to you. But it’s not easy, and getting started especially can throw up all kinds of issues that you had no idea about. Here are three pitfalls that many small businesses owners can fall into.
Getting their taxes wrong
If you’re a new business owner and have never done your own taxes before, it can feel like a bit of a minefield. Of course, you can get a tax accountant to do your return for you, however there’s more to it than just an annual tax return. The hard part is budgeting for your tax bill, predicting what you’ll owe and keeping money out of your profits aside. There are tax calculators online which can help you to work this out, be sure to make accurate estimations as get it wrong and you could end up with a huge tax bill that you’re not able to pay.
Overlooking security
As a small business, it’s easy to assume that you won’t be targeted by criminals. After all, bigger companies have far more money and assets, making them more attractive to steal from- right? Well, not always. Bigger companies have more valuables but they also tend to have better security. Lots of criminals like targeting smaller companies as their security tends to be weak. It could be as easy as guessing the password in some cases. Consider single sign on to save time and improve security, and ensure all of your computers are up to date (as these updates provide security patches). If you deal with customers in person and take cash, lock money away into a safe and make regular trips to the bank so you never have too much on site. Keep your premises or home office locked and secure when you’re not there, you can buy great security systems these days that work with your smartphone and don’t cost the earth.
Not having the right insurances
The right insurances are often a legal requirement, but even if they’re not where you live, they’re worth taking out as they protect you if a claim is made against your business. Did you know for example, that if someone slipped outside your premises on snow that you could be held liable? Even if you’re very careful, these things can happen so cover your back. Most businesses will need public liability insurance, and employee liability insurance if you hire any workers. Others depend on what it is that you do and what your risks are. If a claim is made against you and you have no insurance, you will have to pay out of your own pocket which can completely bankrupt you and cause the failure of your venture. Don’t overlook this important element.
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