You can have the greatest products on the planet, the most affordable prices, and a team of upbeat and dedicated employees who are devoted to making your customers happy. But as seasoned entrepreneurs know quite well, running a successful small business involves a lot more than these important factors. To make it in the cutthroat business world, it’s crucial to avoid making common mistakes.
In order to improve your chance of succeeding in the small business world, avoid the following five pitfalls like the proverbial plague:
Do not borrow tons of money
In order to get their small businesses off the ground, many entrepreneurs borrow huge amounts of money from the bank, their friends and family, and their credit cards, Nolo notes. High debt can be incredibly stressful and cause business owners to feel like they have to make a ton of money right away, which is not always easy to do. Instead of borrowing the funds you need to get things going, save as much as possible ahead of time and use this money to purchase needed supplies, pay rent and hire employees.
Think about the tax man now, not later
No one likes thinking about paying taxes. It’s an easy thing to put off until the last minute, especially for new business owners who are trying to get their companies off the ground. But as Capture Planning notes, in order to avoid getting bitten in April, it’s important to meet with a knowledgeable accountant before you even open your small business.
Not being reachable
Starting a new business is tiring, and it’s understandable that you’ll want to take a break now and then. However, it’s important to stay reachable as often as possible, even on evenings and weekends. A great way to do this is to create a business website that includes contact information like your phone number, email address and any links to your social media pages. This way, if a potential customer is online shopping for your particular product late on a Sunday night, he or she can easily contact you with any questions. One type of business that does this quite well is insurance lead company QuoteWizard; its website includes a variety of easy ways to reach representatives from the business.
Getting too big for your britches
While you might assume that owning a successful small business means having a lot of employees in a fancy office, Fox Business notes that this is not always true. Try to keep overhead as lean as possible at first by possibly working from home and hiring a bare bones staff. Focus on building relationships with other business owners and create partnerships that will be mutually beneficial. When it comes to growing a successful small business, small and steady will help you win the race.
Don’t be afraid to say “no”
As a budding entrepreneur, you understandably want to please as many people as you can. However, there will be times when clients will want you to do a project you are not really comfortable with, or they will ask for too much of a discount. In these instances, it is important to learn how to say “no,” without feeling guilty. Although it might be hard to pass up a quick profit, if you keep agreeing to prices that are far lower than what is reasonable, you will probably regret it in the long run. Stand firm, know that your fees are fair, and keep focused on what you truly love to do.