Starting a new business can be a very stressful time, but it is important to make sure you have measures in place to ensure you do not trip at the first hurdle. Businesses are most vulnerable to failure during the early years of trading, with 20% of new businesses folding within their first year, and 50% within their first three years.
Have a look through the following business mistakes to make sure you turn your business into a success rather than a failure.
· Not having a business plan- You may have many business ideas, but unless you physically write a business plan you cannot know if any of them will actually work. Make sure you address the key issues that can help form the foundation and initial strategy for any new business venture. It may be time consuming, but it will be worth it. You will need to do your research, but time you invest now will mean you are not wasting time in the future trying to fix mistakes that could have been avoided.
· Understanding the work involved- Many people enter the ecommerce field with the intention of making easy and fast money. However, there is a lot more to it than that. Make sure you do your research and make sure you know how much responsibility you are taking on.
· Weak financial planning- Having funds and sufficient capital is essential when starting your business. Without it you will not have the ability to develop and grow. It allows for the survival and prosperity of your business and it is a primary indicator of your business’ health.
· Lack of contingency plan- There are many situations beyond your control that may impact on your business and cash flow. These include interest rate rises, transport strikes and even political instability. Your business may be able to survive periods where there are no sales or profits, but it definitely cannot survive without cash. Make sure you build up cash reserves that will ensure you are still able to trade during difficult times.
· Starting without an online presence- This could be the one big mistake you make that holds you back when trying to move forward in the future of business. Pretty much every company out there nowadays have an ‘online presence’, whether this is a website, a social media page or domain name and email. However, if you do not have any of these then it will make things a lot harder for you! You need to be able to be found when searched for, and this will help towards the success of your business.
Are you starting a new business and feel you may need some advice on the do’s and don’ts? Give us a call today or pop in for a free, no-obligation chat. We’re happy to help.