Running a small business is hard, there are so many challenges that any small business owner or team can run into on any given day. It can be tough for many to be able to figure out how to navigate through all of the advice or rumours or tips that are out there waiting for the un-savvy business owner.
But, what is worse than that is making the mistakes that you know you shouldn’t be making.
There is a popular statistic out there that as much as 70% of businesses are failed in just one year. You certainly do not want that to happen to you and it’s even more important that you don’t take the wrong steps towards making it happen even quicker!
Here are 5 things not to do when you are starting out with your new business; otherwise you are going to be out of business in no time, losing a lot of hard earned money, effort and pride.
Destroying Your Business Credit
This is a big one, and unfortunately, it can be pretty easy to fall down the rabbit hole of spending. Let’s face it, starting many businesses can be costly at first, and you might have to rely on using credit more than you normally would.
For others, it could be once they get that nice shiny business credit card in the mail they can’t wait to start using it. Don’t spend just to spend, be smart about it.
Like anything else, it can be quite easy to raise your credit score when you are starting out, but try doing it if you have hit rock bottom, it’s really difficult and can take years.
Not Knowing the Tax Rules
There are a lot of complex issues out there when it comes to taxes, and this is especially true once you are in a small business situation. It certainly will be quite different from just your own filings for yourself or a spouse.
The only smart way to proceed, especially when your business is first starting out is to hire a professional accountant to do your taxes and work with your business.
Not Paying Attention to Your Books
Any business, no matter how big or small will have a lot of funds flowing in and out of accounts at all times. It can be quite difficult to keep them all straight, especially if you haven’t set up a payment system or your accounting books quite yet.
If you do not have an accountant employed on your payroll then you are going to be in trouble. The last thing that you need is to send out payments to a bunch of invoices and get a call to be told your bank account is empty and your account is now delinquent.
Being Unsure of Your Target Market
One of the worst things a business can do is if they don’t know who they are trying to sell to. No business is going to succeed if it can’t make a sale, so it is incredible important to make sure that you have spent time really researching who it is you are going to target and crafting your ideal customer.
Hand and hand with this is making sure that once you get your ideal customer target is that you are marketing directly to them. Don’t become enamoured with the idea that there are so many people out there, because most of them are not going to be interested in buying from you. Instead know what spaces you are going to be in and throw in all your marketing resources.
Otherwise, you will be sunk before you have even begun.
Hiring Bad Employees
One of the biggest ways a small business will become successful is by hiring a team of really great and dedicated employees. At times, it can be a crapshoot when picking potential employees, and this really can especially be true for small businesses, because there are going to be just a few people working at the office, it is really important to make sure everyone works well together.
You want to focus on people who are competent at the job, to be sure, but for many it is almost more important for any employees to have a good working personality. Otherwise, it won’t matter how talented an employee might be, having a toxic atmosphere is not going to be good for business.
Avoid These Mistakes for Small Business Success
Of course, there are many different roads that lead to a successful business. But, at the same time, it is really important to not set yourself up for failure before you even start. By just avoiding some of these really common mistakes you will be setting your small business towards the path to achieving success.
This article is provided by Nixon Williams, a leading accountancy practice company in the UK. To discuss your needs for experienced Nixon Williams accountants with a helpful team member please contact them for more information.