There are things as a small business owner you should never do or think of doing. Have you ever seen how an electrician gets goosebumps when you try to mix up earth and red wires? Well yes, there are things that small business owners do that give investment experts goose bumps. However, if you take care of these mistakes you should be on the safe side when it comes to effective decision making and better deliberations on how the business should move forwards.
1: I can do all business by myself
Maybe being overly independent is a virtue in its own sense but you cannot do all the things required of your business alone. How can you be the one who is waking up in the morning, you do all the cleaning, you do all setting up of accounts, you handle all the clients and at the end of the day you should be reporting some profit? It wouldn’t make sense even those who started an office in their garages would highly recommend that you find someone to help you. Sometimes, a helping hand would do especially when the business becomes overwhelming for you.
2. Your product will sell itself
Assuming a business owns a coffee shop down the street and as long as sign boards read “Coffee Shop” then automatically customers will flow in. Well, people who can see your sign board would be more than glad to take a cup of coffee in your shop but you need more people to know you exist. This is where you can even think of issuing coupons and discounts to people who come to buy coffee and something else. So you need to be aggressive, send out pamphlets, flyers, and even have someone welcome them to the coffee shop, in other words, create a presence and command it if possible.
3. Being clueless on Finance
As long as you know how much income your business gets every day and how much you are spending each day then you are good to go. Well, the back doesn’t stop there since there is a document known as the cash flow statement and with a few tutorials on how they work and what they mean could save your business, big time. So take time to understand all these documents and know what each term means.
4: Assuming profitable aspects of your business
Every business has its highs and lows and sometimes you will need to be smarter at detecting what drives your business. The lows are what will determine why you are in the business in the first place. If you are in the business because believe it is profitable so what would you do if it gets losses? Sometimes quitting is not the answer, the answer is finding your business’s strengths and work on them. This also means you need to really think what makes you run the business.
5: A small startup capital
Most experts advise that you need enough capital that can sustain your business for an year or more. This means that that going into a business with the exact amount needed for it to start may be more of a suicide mission.
Avoid all these mistakes and you will be up and about smiling about your business’s progress.