For those starting a business it can be a mixture of emotions. It can be exciting to start a business, but daunting with the amount of work required in order to stabilise and progress the business. As a business owner, you have the scope to take your business in any direction, but there are common mistakes that small business owners make. Here are 5 common mistakes small business owners make.
Long Term Is More Important Than Short Term
Many small business owners will need to cut back on their finances immediately in order to help the business progress. However, this is a short term answer and as business owners, thinking of growth, revenue and income for the long term is much more important. This dictates which direction the business will take, rather than worrying about switching the lights off when no ones in the office. While these things can save money in the short term, having goals and reaching them should be hugely important.
Recording Absolutely Everything
Whether you are starting a small business, or have an established business it is important to have absolutely everything recorded. Some may find themselves recording only the important things such as income, out goings and revenue. It is important to record absolutely every, which includes everything from transactions to invoices to tax details and can be recorded in various ways. Small businesses can use accountants, but will come with a huge expense. Take advantage of manual forms of monitoring, including bookkeeping software or manually creating spreadsheets. These methods allow you to have full control over your business helping you understand each and every aspect of your business.
Understanding Your Market
In order to create an effective and reliable business plan you need to understand the market. Some small business owners could find themselves not keeping up-to-date with trends, or directions that their business is taking. It is important to understand whether your business is seasonal, trend based or all year around. Not only does it help you understand your business, but it also helps in terms of competitors, how gain additional customers and how competitive the market is. Remember that your business growing is an essential part of your plans, however if it grows too fast, businesses can often become stretched and over worked, rather than taking pride in gradual development.
Getting Side Tracked
Small business owners can find their time filled with tasks on a day to day business, making it difficult to get essential tasks done. It is easy to side track and find yourself working on something entirely different from the start. Get these essential tasks done and begin to focus on the smaller things that can be done around the main tasks. This way you have a schedule and are not allowing yourself to get side tracked with smaller, less essential tasks. Some can provide to be a waste of time and others can be beneficial, however setting up a timetable is more important.
Valuing Customers More Than Your Employees
Without employees your business would be nearly impossible to run on your own. Some employees may be hugely frustrating, but the workload they take on will help you take your focus elsewhere. They will often will be the first point of call for customers, but should never be valued below customers. This can be disheartening, making the job a chore rather than enjoyable. Highlight responsibilities, monitor their daily, weekly and monthly tasks and reward them if they do well. This helps keep a happy environment, which will maintain a happy business.
About the Author
Veronica Pembleton is a freelance writer and research journalist, who specializes in a number of core areas, including freelancing, law and business. Through studying journalism at university, Veronica was introduced to a number of contacts in different industries, where she was able to build her portfolio of both clients and feature articles.