Starting out on your own is indeed a risky business – most of the time you are not sure that you are doing the smart thing. To help you on your way, here is a list of things that you should avoid while starting a new business.
Think of the new venture as a puzzle that you are putting together. Choosing a location, hiring staff and building a customer base are among the many pieces of the puzzle that you must assemble to build a strong business. Missing out on even a single piece will leave a gaping hole. Risk of failure is high during the initial three years and often, because of a lack of prior understanding of the mistakes to avoid while starting a new business. Not sure what we’re talking about? Relax! We’ve made a list of warning signs that you need to attend to before venturing out on your own.
* No business plan – The first piece in the puzzle is a business plan, without which you will go nowhere. While an idea is necessary to start a new venture, it needs to be thoroughly fleshed out in the form of a business plan to ensure that your enterprise starts off on a sure footing. A business plan forces you to think about your goals – and helps you find answers to questions like “What do I want to accomplish and how am I going to do it?” Remember that if you fail to plan, you are actually planning to fail. While a business plan is essential, remember that it is only a guide to help you through the process; it is not an end in itself. As situations unfold and priorities change, you can always go back to your plan and change it. The planning process is tedious and time-consuming but it will benefit you more than you could imagine.
* Ignoring the internet – In today’s digital world, not having a website to promote your business is as good as not having the business at all. A website can be a great marketing tool to spread awareness about your new venture. Ignoring it probably ranks very high on the list of mistakes to avoid while starting a new business. Also acquire an email facility with your website’s domain name. This sounds a lot more professional than a free internet mail service.
* Insufficient funding – The US Small Business Administration (SBA) considers inadequate or ill-timed financing to be one of the main reasons why small businesses fail. Effective cash flow management will help get funds into the bank as quickly as possible. Do plenty of research to find the right financing option as there are many choices including angel investors and venture capital firms, commercial banks, SBA assistance, home equity loans, and credit cards. best LLC service
* Choosing the wrong business structure – The typical structures for a start-up business include sole proprietorships, general partnerships, joint ventures, limited partnerships, limited liability partnerships and others. The decision you make now will have long-term implications, so consult with an accountant and attorney to help you select the form of ownership that is right for your type of business.