Running a small company has its advantages, like establishing personal and closer relationships with your customers, having more flexibility, independence and diversity, but it carries also many disadvantages such as less recognition and inability to compete with the prices of the competition. Small business owners often make many mistakes when they establish their businesses. Some of these mistakes can be avoided if you are careful enough.
Here you can find five of the most common mistakes that small business owners make, so you can try to avoid them.
Fail to research the market. Well, your great idea can seem so awesome to you, your family and friends and almost everyone else whom you have shared it with. But will your product be that attractive to enough people, so you can establish good customer network? Never overestimate the demand of your product and the size of the targeted market.
Fail to add the numbers. Often small business owners fail to estimate how much the product they want to sell will cost them, along with all other “hidden” costs which seem invisible in the beginning like transportation costs, office space, employee wages, even taxes. Your financial planning and responsible accounting can save you a lot of trouble and headaches.
Fail to create clear business goals. Without clear goals you are very likely to fail very fast in your venture. If you know where you are going, it is easier to plan your journey, but if you are wandering without specific direction, it is most likely to waste your time, energy and resources.
Don’t have online presence. Just because your business is small doesn’t mean that you shouldn’t have online presence. Connect and regularly communicate with your customers online and build your online image properly.
Fail to prepare and train their employees. Poor hiring can damage your company, but if you hire the right people and fail to train them well and fail to keep them in your company, it is a half-done job. Don’t be just an employer, be an example and an inspiration to your employees and you will never regret it.