Owning a business comes with opportunities that aren’t possible when you work for someone else, but it’s easy to make mistakes when you own the company. This is especially true if you have a new business. Most new organizations simply don’t have the strength to weather a storm. If you’re in the early stages of starting your company, here are the first three of the seven most common mistakes you’ll want to avoid:
1. Failure to obtain expert advice at the outset
Many people open a business without first talking to a business consultant, coach, or advisor. The reality is that some people have only a good idea mixed with a little bit of passion when they open a business, and in today’s tough economic climate, that is not enough in most cases. Talking to a professional can help you take the right steps in the right order before you get started.
2. No business plan
There’s a good reason to create a business plan. It helps you map out where you are, where you should be, and where you want to go. Creating a business plan gives you time to analyze things carefully, and that’s key to moving forward.
3. Improper capitalization
Businesses need money to run, and while you may be trying to make it work with a shoestring budget, there are going to be cases where a shoestring budget just isn’t enough to move forward. You have to have enough money to get started or you can kiss your dreams of success goodbye.
Next time, we will discuss the remaining four most common mistakes business owners make.