There's nothing like starting a new business, so strap yourself in. You're in for an exciting (and sometimes challenging) ride. While there's a lot to think about as you get your business up and running, it's important to take stock of potential pitfalls that could hurt your bottom line. Today, JaM Advertising & Productions will take a look at five common mistakes new small business owners make — and how to avoid them.
Choosing the Wrong Business Structure for Your Needs
One mistake new small business owners often make is choosing a business designation that doesn't align with their business model. For example, let's say you're a sole proprietor who plans to do all the work yourself. In this case, it might not make sense to choose a limited liability company (LLC). Why? Because LLCs offer personal liability protection, and since you're the only one working in the business, you don't need that protection. On the other hand, if you have partners or plan to hire employees, an LLC would offer some much-needed legal protection. The moral of the story? Do your research and choose a business designation that makes sense for the way you plan to run your business.
Stretching Your Budget Too Far
Another mistake new small business owners make is failing to stick to a budget. Just because you're your own boss now doesn't mean you can spend money willy-nilly — you still need to be mindful of your limitations. Before you start spending, sit down and create a budget for your business. Factor in things like overhead costs, marketing expenses, and employee salaries. Once you have a budget in place, do your best to stick to it. This may mean saying "no" to expensive office furniture or passing on that fancy new coffee maker for the break room. But trust us, your wallet will thank you in the long run.
Skipping Writing a Business Plan
A third mistake new small business owners make is failing to create a business plan. A well-crafted business plan will give you direction and keep you focused as you grow your business. Not sure where to start? There are plenty of resources out there to help you write an effective business plan.
Thinking long term, you might even want to go back to school and get a bachelor's degree business. That will give you an edge over the competition by providing you with the detailed know-how you need to make your business plan – not to mention your business overall – be a success. What’s more, thanks to the flexibility of online education, you can learn at your own pace without having to take too much time away from work and family.
Failing to Write a Marketing Plan
A fourth mistake new small businesses make is not having a marketing plan in place. Marketing is essential for attracting new customers and keeping existing ones coming back for more. Without it, your business will struggle to grow. Fortunately, there are tons of marketing resources available online.
Hiring the Wrong People
A fifth mistake new small businesses owners make is hiring the wrong people — people who don't share your vision or who don't have the skill set needed to help grow your business. When hiring employees or contractors, take your time and find people who are not only qualified but also passionate about what they do. These are the people who will help take your business to the next level.
There's a lot to think about when starting a small business, but avoiding these five mistakes should be at the top of your list. By taking care in choosing a business designation, sticking to a budget, creating well-structured business and marketing plans, and hiring passionate and skilled employees, you'll put yourself on the path to small business success!
JaM Advertising & Productions offers a comprehensive approach with the speed and agility you need to propel your business forward with the most professional audio and visuals. If you have any questions, please contact us at info@tasteofjam.com.