Starting a small business is an exciting experience–and potentially financially rewarding. But does it feel like your business is not moving forward? Does it feel like it’s not making as much progress as you hoped it would? We understand your passion and commitment, but maybe you’re committing a couple of slip-ups as an owner.
After all, entrepreneurial ventures are really faced with various missteps, mishaps, and mistakes. The key to your success is to quickly identify your mistakes, learn from them, and prevent the same mistakes from happening again.
To guide you, New Wave Gold Coast Accountants listed some of the most common mistakes that small business owners make and how you can avoid them once and for all.
Immediately making big purchases for the business
When you start a new business, it’s understandable to become excited about flashy new office equipment and other expensive purchases. But even if they feel like investments, think these decisions over very carefully. Some expenses will be mandatory depending on the type of business you’re starting, but you need to always ask yourself if the expense in question is going to help you generate more revenue in the short-term. At this point, you can still make do with the absolute bare minimum. Grow your business first and accumulate a higher level of disposable cash before spending on the things you want your business to have.
Undervaluing your product or service
Lack of confidence in your ability and fear of failure can cause business owners to underprice their products and services. This undermines the potential for a unique value and even opens up resentment and frustration. So make sure to explore the market thoroughly as you start your business to identify the best price entry point for what you’re selling.
Misreading the market
Charging into a market that you don’t fully understand can cripple your business. You need to be meeting your customers’ needs for them to buy it. Remember that it’s not about you. Do lots of research and talk to people already in the business for advice — before jumping into deep waters.
Assuming customers will come to you
Remember that you’re starting from ground zero. You have to introduce your brand and products to the market before you expect them to come to you. Here is where budgeting for marketing expenses comes in. Advertise in local newspapers, send out flyers, create social media accounts, have a website. After all, the only way for people to learn about you is to get the word out.
Not setting a clear budget and not saving up for emergencies
Your business can have a very hard time succeeding without at least a rough budget to help guide what you can and cannot afford to spend on each month. You need to be able to steer your new business towards profitability, and you can only do that if you have a carefully planned budget for operational, marketing and other expenses. Having a clear budget increases financial discipline and clarifies the roadmap to business growth.
Also, in running a business, you will always be faced with unexpected circumstances and covering the cost using a credit card or a loan is a shortsighted solution that only tends to create more problems down the road. For this, most businesses are advised to keep at least three months’ worth of expenses in an emergency or contingency fund for both their business and their personal expenses.
Trying to be a Jack-of-all-Trades
You care about your business so much that you try to juggle everything by yourself—from marketing to admin work to logistics to the payroll. But as you grow, remember that you can’t be an expert at everything. The good thing is that you can easily outsource people these days. Need an assistant? You can now easily find a virtual one. A marketing manager? Someone who works remotely is also conveniently available. And how about an accountant or bookkeeper? Great, New Wave is here to manage bookkeeping Gold Coast for you! No matter where you are in the world, we can take away your stress by making sure your figures are accurate and up to date. We ensure that you can rely on your figures and just focus on making your business grow to newer heights! Contact us for more Accountants Broadbeach questions.