Starting a business is hard. Some estimate that as many as 50% of small businesses don’t make it past the five-year mark. Why? Maybe their owners made one of these mistakes. Here are ten mistakes small business fall prey to.
Poor Market Research
This is your due diligence: taking the time to gather information about the market, your customers and clients, and evaluating your strategy in light of that information. Make sure you understand what demand level exists for your good or service, and what price people will pay. Then determine if you can make an acceptable profit based on those details. Seem like too much work? Its work, no doubt, but it will save you time and money in the long wrong.
Puny Customer Base
Just because your Aunt Mary says she’ll buy from you every month does not a successful business make. This mistake goes with market research. You must have a good customer base, one where it won’t rock you too much if some folks decide to go elsewhere for business.
Like trees, businesses shouldn’t grow too quickly. Take on only the work you and your staff can handle or risk letting your client and yourself down.
Shoddy Record Keeping
You might be starting your dog-walking business because you love animals. Not everybody is a natural accountant or loves paperwork, but you must keep current with sales, purchases, invoices, employee information, and other expenditures and reports. Think of it this way: you’ll save time at the end of the year when you or your accountant prepares your books.
Next time, we’ll present three more small business mistakes you don’t want to make.