Bureau of Labor Statistics says that 50 percent of all small businesses are failing within the first five years. About 30 percent survive only two years.
You have to work hard, to be in the positive side of these numbers. I have tried to collect the most common mistakes that most common people make when starting a business. While every business is different, I decided to call them as “most common”.
1. Idea is Just the Beginning, Not Al You Need
There’s a lot more. First and most important one is a good work plan. The idea is just the beginning. You need to consider all details that your idea may need from beginning to end, with the help of asking ‘what and if” questions. Your foundation must be solid and reliable. Otherwise doors will never stay open endlessly.
*Related Post: 10 Key Steps to a Successful Business Plan [Infographic]
2. Not Considering Laws and Accounting
Starting a business is complicated and challenging. There are laws that must be followed and those include tax laws. If you make the wrong move or don’t file the right paperwork and you could find yourself in some real trouble. Getting help and advices from a lawyer or accountant or a business expert can save you from a serious crisis.
3. Spending Your Money Too Soon
No matter how big your money is, that doesn’t mean you should spend it all right up front. You need to figure out exactly where your finances should go before overspending.
Slow start will give you the chance of getting feedbacks and analysing results. After these results you can spend your money more sensfully. The number of businesses that have subside themselves by trying to grow too quickly is nonignorable!
4. Just Concantrate on This Job
To be honest, the amount of work load for starting a business is impossible to calculate if you are working on or dealing with any other jobs or porojects.
A new business needs your full attention to get off the ground. For developing work plan and calculating financial need it is ok, but once you are ready to start, you have to be also ready for devote your full time to it.
5. Having Someone Else Running Things
You don’t need to be the only one in charge, but be hands-on with the day-to-day activities, at least to start.
Decisions must be yours. You need to be the one stating agendas, schedules, vendors and an organizational structure. If you have partners, just prepare a clearly mentioned work chart of responsibilities from day one.
You believe in your idea. Your passionate desire for your own idea doesn’t mean that the rest of the world will love it too. Just gain the main control and never miss any detail out of consideration. Work in a timely manner, trying to catch overnight success not so useful for businesses.
*Related Post: What is a Business Plan and How to Prepare it?