After gaining the courage to face the challenges of entrepreneurship and put down roots in a new business, many small business owners still face common challenges that prevent them from flourishing. While it may seem like risks are hidden around every corner, there are many things smart business owners can do to protect themselves from pitfalls and avoid business mistakes.
One of the main reasons for businesses going under is inappropriate growth rates. While most business owners fear their businesses are not growing fast enough, growing too quickly can soon become an issue as well. Businesses that grow too quickly often fall victim to overstretched resources and overworked and sometimes poorly trained employees.
As this trend continues, small businesses become unable to keep up with the demands of the market. Avoiding your business growing too quickly or too slowly means keeping a close eye on the market. You need to stay up to date with the latest consumer trends. Working closely with a marketing team or experienced market advisor can help you stay in the loop and one step ahead of buying trends.
You need to have a sufficient amount of capital to bring it into the world before your business is even born. Many entrepreneurs pool their personal finances into their business, increasing the risk if things turn sour. Keeping a tight leash on your company’s spending is essential to the longevity of your business, especially in the first few years. Sacrifices are often necessary to sustain your business. So take time to think about what expenditures are essential, and which are not.
Your business’ taxes are also an area that needs to be closely monitored. Corporate Business Solutions recommends strategic tax planning as an essential part of any business’ financial management. Taxes, of course, are a huge part of your expenditure. And as such require careful calculation and planning ahead to ensure your business is earning enough to keep up with the tax man.
One of the largest pitfalls for small businesses is dependence. Business owners who rely too heavily on one product, customer base or another resource, often set themselves up for disaster when that resource fails. The key to avoiding this pitfall is to invest in more than one product or business venture. Startups or businesses that rely on very niche products should also invest in other, more reliable ventures in order to safe guard your business. Again, staying on top of the market is essential for avoiding this common misstep.
Being a Smart Business Owner
While there are many mistakes that can put your business in jeopardy, staying educated about these business mistakes before they happen will help you gain the successful business you’ve always dreamed of. Keeping your eyes on the horizon and a handle on the market will ensure you are well on your way to being the next Fortune 500 CEO.
- Philippe Kruchten, Robert Nord, Ipek Ozkaya
- Publisher: Addison-Wesley Professional
- Edition no. 1 (06/16/2019)
- Adam Carroll
- Kindle Edition
- Sawaz Baabe
- Kindle Edition
Last update on 2020-03-19 / Affiliate links / Images from Amazon Product Advertising API
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