- Customers, without them there is no business. Too many businesses start without a market or a good sense of understanding who that market is. Furthermore, a new business owner has to be willing to go out and find business and sell their product/service every day.
- Lack of financial support. Grants are seldom if ever available to start a business and financing will require cash equity. It is never a good idea to finance a new business on credit cards.
- Although your new business will take up a lot of your time, don’t forget to plan days off. Plan time with your family and even find ways to include them in running the business.
- Overestimating family/friendship support. Family and friends will always tell you your ideas are great and if you are starting a business with a friend or family member, always treat it as you would a business relationship.
- Not planning your cash flow. Cash flow will make or break a business, always plan for payments and know your balances. Be sure to price your product/service appropriately.
- Not recognizing your competition. Know who they are, what they are charging and how they are delivering.
- Hiring employees. Put this off as long as possible to save on costs. When you do, make sure you keep up with worker’s compensation and payroll taxes.
- Not paying taxes. Know that you are responsible for collecting and then paying sales taxes and other business taxes or you will be assessed large fees or even prosecution.
- Lack of product/service knowledge and understanding. Be the expert in your business.
- Not asking for help. Ask the experts and develop your team of resources for the management and growth of your business.
- Letting your passion cloud your judgment on whether you have a viable idea or a suitable market.
- Starting a business without considering all of the above points and not knowing when to get out or transfer it over to new management.
The only goal is for the owner to make more than double the income from owning and operating the business, as he or she would make working in the business for someone else.
If you'd like to learn more, contact our Small Business Development Center at 419-243-8191.