Starting your own small business is an exciting and terrifying time. Where do you start, how much will you produce and where will you find clients? Before you jump right in and go hog wild on the business, step back and take time to read these five mistakes to avoid when starting up your small business. They may save you some time and loss.
- Thinking small. “Small business” doesn’t necessarily mean you are small. You have big ideas and that’s great, but don’t lose sight of what a small business can offer. As a small business, you can offer a great customer relationship with your clients and focus more on the wants and needs of customers more than giant franchises can. Use this to your advantage.
- Failure to find your niche. Let your passion be your niche. So you want to be a carpenter, that’s great but there are hundreds of carpenters out there. What do you enjoy about carpentry? If it’s a specialty, utilize that specific area as your niche market.
- Not adapting to new technology. You have been making wine as a hobby for years now and have decided to start up a small winery in your area. In order to compete with other wineries, you have to adopt the new technology focused around making wine. You may not understand Facebook and Twitter, but if it will help reach your target market, learn it and add it to your business practice. Knowing new technology can’t hurt you; it can only help in the road to success.
- Misusing money. This is a sticky area and can cause a lot of big problems for a small business. There are three areas where money can go wrong: undercapitalization is where you don’t have enough money to accurately start a business, excessive debt is the opposite from undercapitalization and can cause you to take on too much debt and lastly, excessive overhead is caused by draining cash flow and limiting options.
- You are not superman [superwoman]. You want your business ran a certain way and why shouldn’t you. It’s your business and it should be done your way. Don’t let this mantra over shadow the fact that you are one person. You will need help so don’t be afraid to ask. Hire part time employees or ask a family member to help you out.
Are you ready to start that small business yet? I think you are, so remember these 5 mistakes and make sure you don’t fall prey to them. Dream big and don’t forget your passion. Good luck with the business!
Have you started your own small business recently? If you have any tips on what not to do when starting up we’d love to hear. Leave your tips below in the comment area.