5 Costly Business Mistakes You Don’t Want to Make

5 Costly Business Mistakes You Don’t Want to Make

Starting a small business is fraught with risks and a great deal of careful planning is needed to ensure the business gets off to a good start.
Aside from the obvious marketing strategies, you will also need to determine what your product or service has to offer the potential customer that others do not. Life is all about learning from your mistakes, and with that in mind, here are some basic errors to avoid when setting up a business.

  • No Marketing Plan – It matters not how good your product or service is, without a predefined digital marketing plan, the road ahead will be tough. With so much competition, consider finding a leading digital marketing agency who can help you map your path to success. One simply cannot afford to overlook social media and, of course, search engine optimisation is essential if you want users to find you.
  • Lack Of Bookkeeping – It is oh so easy to become wrapped up in administering the business that you forget basic bookkeeping. From day one, it is crucial to record every transaction. Transactions would be backed up by numbered receipts and invoices, and with affordable bookkeeping services Sydney businesses rely on, you can outsource this to a third party. It is also necessary to hire an experienced accountant who can help you to set up a clear accounting system that you can use from the very outset. Spreadsheets detailing various expenses and a list of invoice payments should be created and updated on a daily basis and failure to keep accounts is certainly going to cost you money in the long term.
  • Forgetting To Calculate Your Profit Margin – Many young entrepreneurs are so excited about their product line, they forget to crunch the numbers and end up selling themselves short. Once you advertise your prices, there’s no going back, so make sure that you know exactly how much it costs you to present your product. This means you must include every expense, no matter how trivial and calculate a break-even point, then you can decide how much profit to include.
  • Overlooking Your Business Plan – If you are thinking that a business plan is only necessary when trying to woo investors, think again, as your business plan should be your template for success. This very much defines the scope of your business and should cover every aspect of the intended business, including a detailed breakdown of start up and running costs.
  • Running Out Of Money – Perhaps this is the most common blunder an entrepreneur can make, which could bring the whole thing crashing to the ground. It is easy to be optimistic when crunching the numbers on a start-up, and all it takes is a few unexpected expenses and a slow start to put you in a position where you can’t pay your bills. As a general rule, you should have enough money to make it through the first six months without making a single sale, although many budding entrepreneurs have made it with less than half of this, it is still very risky to go into business with very limited funding.

There are many pitfalls to starting a business and one really must take everything into account and being less than optimistic is always a good stance to take.

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About Seth Ejercito

Seth Ejercito is a content editor at Media Buzzer.