Top Mistakes Small Businesses Make in their First Year
By Angela Sanders Monday, October 21, 2013, 12:43 AM EDT
Starting a new business is a very exciting venture however it can be stressful in the first year! In the first year business owners are constantly learning how to run things and mistakes are often made due to their lack of knowledge but common mistakes can easily be avoided even for small business who are learning and provided you know what to look for, so here goes;
1)Advertising too early
Press is good for all business however try not to put too much focus into it in the first year because unless you’re a big firm it’s not really necessary at this stage to do so. Also advertising don’t come cheap and you need to retain funds as much as possible within the first year to be able to progress to the next.
Starting up alone is extremely difficult but unless you are going into freelance work you may find it more beneficial to hire the extra help, in fact even freelancers find they need to source out work from time to time because it’s impossible to be the best at everything! Sometimes hiring help will adds to your business and the cost of doing so can be very worthwhile in the long run!
Although everybody likes to let their hair down and socialise from time to time, it’s vitally important that you do not let this interfere or disrupt you business especially within the first year. F you do not take the job serious at this stage, how can it ever grow in the future?
4)Back to drawing board!
Yes sometime our plans simply do not work out the way we would like them to, but rather than invest or waste more time trying to make it work when it clearly isn’t you should either try to evaluate the situation or call it a day!
Always listen to advice when it’s given, never act like you know it all and that you know best because if you do you are destined for failure! Listen and learn from those who are successful and take note of the good they are doing!
Being a smart entrepreneur means knowing your limits, everybody want to make money but make sure you make wise decisions that will benefit your business, don’t just go for the ‘BIG MONEY’ because pound signs are drawing you in! And be careful of expenditures in the first year too, splashing the cash is not a wise move to make because most income should be invested back into the business within the first year, especially if you want to see growth!
You cannot expect the money to be rolling over night, many businesses fail to make a profit within the first year, some are even at a loss however do not give up just yet because the first year is always difficult however if you fail to see a progress by the next, you may have to re consider things.
Finally educate yourself on bookkeeping, keeping track of expenses and knowing how to file a tax return RIFT www.riftuk.com you would be surprised how many people don’t know how or simply forget to make tax claims in the first year and this can have dire consequences on your business!