how to start a business the wrong way
There’s a statistic that 80% of all small businesses will fail within the first 5 years of operation. They can fail for a number of different reasons, such as bad market conditions, poor management, lack of capital and the like. If you want to start a successful small business, you have to be well aware of why many small businesses fail and make sure that you compensate for those factors. If you’re going to start a small business, don’t make these mistakes commonly made by budding entrepreneurs
Mistake #1 - Jumping Ship Too Soon. Many entrepreneurs quit their day jobs well before their small business can provide any sort of meaningful income for them. This makes them get desperate and do deals that they probably shouldn’t be doing just to bring home some sort of paycheck at the end of the day. Consider starting your small business slowly and not quitting your day job until you make at least 50% of your current salary at it.
Mistake #2 -Poor Planning. It takes a lot of careful and strategic planning before you can even officially launch your small business. You need a solid business plan that discusses the business, its mission, its goals and its values. Your business plan also needs to contain financial information, analysis of the competition, a marketing strategy, and information about the company’s organization. Not having a solid business plan is a great way to ruin your potential small business.
Mistake #3 - Poor Management. Some of the smartest small business owners in the world admit they aren’t good at what they do and find someone who is good at it to fill that role. Firing one’s self and hiring someone more competent to fill some of the duties that you perform is one of the hardest things that small business owners have to do, but often it’ll save their business. If you don’t have the expertise and talent to run one part of your business, you have to admit it and find someone who can do it once your company becomes of a sufficient size.
Mistake #4 - Trying to Get Too Big Too Soon. - Many small business owners make the mistake of hiring on a bunch of employees, having huge payroll commitments, and then burning through all of their capital. Don’t fool yourself as to how fast you think you can expand your business. Only keep on as many employees as your revenue can reasonably support.
Mistake #5 - Not Utilizing Technology - This might not be an issue for many young entrepreneurs, but some in their thirties and forties desperately underuse technology in their business. There are all sorts of systems and tools which will help you do marketing, manage your customer relations and automate workflow patterns. Effectively using the internet and other technology can dramatically improve the efficiency of your company and increase your visibility in the market place.
Starting a small business can be one of the greatest adventures in your life, but with all adventures come perils. Knowing what these perils are ahead of time and planning around them are perhaps the single best way to make sure your small business succeed.
source: http://www.financeispersonal.com/index.html
Mistake #1 - Jumping Ship Too Soon. Many entrepreneurs quit their day jobs well before their small business can provide any sort of meaningful income for them. This makes them get desperate and do deals that they probably shouldn’t be doing just to bring home some sort of paycheck at the end of the day. Consider starting your small business slowly and not quitting your day job until you make at least 50% of your current salary at it.
Mistake #2 -Poor Planning. It takes a lot of careful and strategic planning before you can even officially launch your small business. You need a solid business plan that discusses the business, its mission, its goals and its values. Your business plan also needs to contain financial information, analysis of the competition, a marketing strategy, and information about the company’s organization. Not having a solid business plan is a great way to ruin your potential small business.
Mistake #3 - Poor Management. Some of the smartest small business owners in the world admit they aren’t good at what they do and find someone who is good at it to fill that role. Firing one’s self and hiring someone more competent to fill some of the duties that you perform is one of the hardest things that small business owners have to do, but often it’ll save their business. If you don’t have the expertise and talent to run one part of your business, you have to admit it and find someone who can do it once your company becomes of a sufficient size.
Mistake #4 - Trying to Get Too Big Too Soon. - Many small business owners make the mistake of hiring on a bunch of employees, having huge payroll commitments, and then burning through all of their capital. Don’t fool yourself as to how fast you think you can expand your business. Only keep on as many employees as your revenue can reasonably support.
Mistake #5 - Not Utilizing Technology - This might not be an issue for many young entrepreneurs, but some in their thirties and forties desperately underuse technology in their business. There are all sorts of systems and tools which will help you do marketing, manage your customer relations and automate workflow patterns. Effectively using the internet and other technology can dramatically improve the efficiency of your company and increase your visibility in the market place.
Starting a small business can be one of the greatest adventures in your life, but with all adventures come perils. Knowing what these perils are ahead of time and planning around them are perhaps the single best way to make sure your small business succeed.
source: http://www.financeispersonal.com/index.html