5 Common Mistakes When Starting a Small Business
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Starting a small business all on your own can be tough. In the midst of everything, it's easy to let a few things slip through the cracks, but some mistakes are more detrimental than others. Here are the five most common mistakes you can encounter when starting up your small business and how to avoid them.
You don't want to sabotage yourself before you even get started. Building a small business can include a lot of ups and downs, successes and pitfalls. And while some bumps in the road are normal, other mistakes are a lot more detrimental. The ones listed down below are the five most common mistakes that you should try to avoid when starting your small business.
Not Making a Business Plan
It is said that everything can be linked back to one great idea, but in order to get that "great idea" off the ground, you'll need a bit of planning first. Coming up with a business plan is one of the most crucial aspects to getting things started. Whether you're planning on running a yoga studio, antique shop or a food truck, it doesn't matter, everyone needs a business model. In fact, it is the only way to truly see if your business can feasibly work.
Not creating a business plan can result in an array of mishaps. Your vision won't be clear to you or to anyone else and so it'll be hard to set long term goals, make practical decisions, be taken seriously by others as well as pass on other information to new and potential employees. Not having a well-formed business plan can also make it hard for you to see the risks around you, so before you decide to jump in head first with a new idea, make sure to thoroughly plan it out first. A full business plan includes:
- An Executive Summary
- Business Description
- Market Analysis
- Competitive Analysis
- Sales and Marketing Model
- Ownership and Management Plan
- Appendices and Exhibits
Not Understanding Your Weaknesses
Whether we like to admit or not, everybody has their weaknesses, just like every business has its weaknesses. In order to properly understand how your small business could potentially succeed, you need to understand how it could potentially fail. Knowing ones weaknesses will help in the planning process. It allows you to understand whether the venture is worth pursuing or if you just have some areas that you need to improve on. For instance, if you're planning on opening up a dance studio, but you, yourself are at a beginner level in what you're supposed to be teaching...then perhaps some more work should be involved. While that shortcoming might seem obvious, there are others that won't be! Before starting your business it's important to understand the full scope, to better help you on the right track.
Trying to Do Everything Yourself
Starting a small business is a lot of work! And while one can probably achieve a lot on their own, its impossible to do everything all by yourself! Besides the obvious burnout, its just impossible to be the best at every aspect at running a business, and so there's always room for improvement or to seek help from others. This is where knowing your weaknesses can come in handy. Maybe you need someone else to manage the finances or to come up with a killer marketing plan to get your shop up and running...? Whatever it may be, getting help is nothing to be ashamed about and it will ultimately help your business florist in the long run.
Not Investing in Marketing
When you're starting a small business, you have to spread your budget thin. Of course, the finances you do have should be funnelled into creating your products or services, or getting verified in your area, or just general maintenance to keep everything afloat. However, it's important that you don't forget about sectioning a portion of your budget off for marketing. Marketing is so crucial when you're just starting out. It helps you reach promote products, attract new people, and keep in touch with your already loyal customers. While most of the marketing can be done online thanks to the powers of social media, you can't rely on an organic strategy forever!
Eventually you'll have to put some money behind your social media marketing, or ... dispense it in other areas. You can send out flyers, promote with street art or even email out newsletters to potential and recurring customers. Or if you have the Surfpay app, you can promote your business thanks to our QR receipt feature. At the end of every purchase, send a digital receipt and then you'll have access to array of marketing opportunities to heighten customer satisfaction and improve retention! But no matter how you choose to market, make sure that you put time, energy and above all money into it! Forgetting to put the marketing plan in your budget can stop your business before it even starts.
Not Managing Your Finances Properly
Keeping track of your finances can be extremely difficult, which is why so many people across the globe need accountants in their lives. Now if you can't afford to hire an accountant, or if you don't have a friend who's finance savvy in your back pocket, then you'll probably have to manage everything by yourself. And while this can be overwhelming, and sometimes a daunting task its important you don't let it slip through the cracks. Whether this is obvious or not to some people is irrelevant. If your sales start out on the rise, some get lazy or at least a bit more relaxed then they should. Not keeping track of the sales you make diligently can result in employees stealing, budgeting errors, or other mishaps that can tank your business.
There are several softwares you can try, if you're bad with numbers by yourself. You can either download them for your phone or computer. Or if you have the Surfpay app, it can provide you with real time data as you're accepting transactions throughout the day, which can help you when its time to calculate all your sales.
But no matter how you manage your finances, its important to keep them up-to-date in order to put your small business on the right track.
Interested in accepting payments, promoting your business, and getting realtime data on all of your sales? Well, then download the Surfpay app, to help you run your small business.