Starting your own small business can be very rewarding, but it’s not without its challenges. Avoiding some of these common small business mistakes can help you to avoid pitfalls when you’re just starting out:
Quitting your job too soon
It can be tempting to quit your job as soon as you make the decision to go into business for yourself. After all, how can you juggle a new business and stay at your current day job? Although you will want to quit eventually, doing so too soon can put a lot of financial stress on yourself, which can affect your business. It’s normal for new businesses to take a while to generate revenue while they establish a customer base, and many new business owners underestimate just how long this can take. If you quit your job too soon, you may have to close up shop and go back to work without even giving your business the time it needed to grow.
Not doing enough research
Having a great idea and a business plan in place is one thing, but how well do you know the market you’re about to dive into? Even if it’s an industry you’re familiar with and have been working in for many years, it’s an entirely different thing when you become a business owner. Instead of focusing solely on getting customers and making money, it’s important to know your market inside and out. Research your competitors, keep up with changes in your industry, stay ahead of the trends, and never stop learning.
Not getting things in writing
From business partnerships to client contracts, it’s important to get every little thing in writing. Overlooking the importance of contracts can be especially easy if your entire business is online-based. Even if you’re just talking a small deal or sale, you want to make sure you get paid for your work. Protect yourself and always get everything in writing before you ever start anything.
Trying to take on too many roles
In the beginning, it’s natural to want to try to do as much as you can on your own, and without hiring outside help. After all, you’ve just started out, and money is tight. But taking on too much at once can actually cost you in the end; sometimes, you have to spend money to make money. It can be difficult, for instance, to focus on running your business and generating revenue, if you spend too much of your time dealing with the bookkeeping.
Ignoring the financial aspects
Aside from hiring people, there are other financial aspects to consider when starting a new business. Many new business owners think too much about the money they’ll make, rather than the money they’ll need to spend to get things going. Some businesses don’t require much money at all, but for most, there are a lot of costs to consider. You can set yourself up for failure by starting your business without having the money you need to get things going. For example, if you need to buy or rent space for your business, are you sure you can afford it at this time? If your business will be home-based, do you have the space and supplies needed? Have you factored in production costs? There are also small business loans to think about, and as a new business owner, you should shop around and compare offers if you are planning on financing your new business expenses, and not just settle on the first loan you come across.
Do you want to start your own small business, but need extra money to make it possible? Peachtree Financial Solutions may be able to help if you’re receiving annuity or structured settlement payments. At Peachtree, we can buy some or all of your future payments and offer you that money sooner, in the form of a lump sum. To learn more selling future payments for a lump sum of cash, contact Peachtree Financial Solutions today.
Nothing above is meant to provide financial, legal, or tax advice. You should meet with appropriate professionals for such services.