by Zoe Zorka
When it comes to building a business, you are bound to make mistakes from time to time. Some of them might be unavoidable, but others can easily have a long-lasting impact on your company. Luckily, it’s more than possible for you to educate yourself from the get-go so you can avoid as many as possible.
Choosing the Wrong Business Type
One of the main mistakes that business owners make is choosing the wrong business type. This will probably be one of the first decisions that you make, so you need to do everything you can to make sure that you take your time and that you select one that is suited for your business purpose. If you run a business as a sole proprietorship then you stand to lose everything, should something go wrong. The same goes with a general partnership too. If you start an LLC on the other hand then your business will become separate from your personal belongings, but this does come with its fair share of risk too. If you want to avoid making mistakes like this then you need to consult an attorney or even a legal advisor as they will be able to help you to decide which option is best for you.
Not Protecting your Idea
Another business mistake that a lot of entrepreneurs make is trying to take their idea to market without even trying to protect it first. Entrepreneurs often get excited about telling friends or even family about their ideas and they even partner with investors without seeking any kind of legal protection first. This is a serious mistake because anyone could essentially take your idea and then profit from it. One way for you to deal with this would be for you to increase your knowledge base by trying to learn trademarks, copyrights, patents and more. You should also chat with an attorney to see if they are able to provide you with the protection you are looking for.
Choosing the Wrong Business Partner
The third most common mistake you might face is choosing the wrong business partner. This is a delicate issue and you should always handle it with some degree of care. If you don’t then you may end up finishing things on a bitter note. If you want to stop yourself from making this mistake, then you need to interview your proposed partner. You need to find out if they share the same mindset as you and you also need to find out if they are able to share your business vision too. Having their strengths complement yours is also another bonus, so keep that in mind.
Hiring Fast and Recklessly
A lot of entrepreneurs make the mistake of being too hasty when hiring employees. If you rush the process, then you may find that you end up getting people who do not share your passion and they might also not be able to fulfil their role properly either. This can have a detrimental impact on your business, but there are ways for you to get around it. For example, you could try and go through a recruitment provider or you could even have a more extensive vetting process. When you do, you will soon find that you are able to recruit quality staff who believe in your idea.
Firing Slow and Not Cutting Bad Employees Loose
Hiring too fast can be a mistake, but not firing people fast enough is also something that you should be wary of. If you become too emotionally attached to your employees, then you may find it difficult to fire them. If an employee isn’t meeting their targets or if they are not doing everything they can to ensure your success, then you need to let them go. If you don’t then you may be giving your customers a bad impression of your business and you may even find that this poisons your workplace. If you aren’t sure how your team are performing, then track their work output and also ask your employees if there are any changes that they feel as though they would like to see. This will create a healthier working environment overall and it will also help you to give your team the support they need to really grow into their role.
Not Taking Risks
Risk-taking is essential for your business growth. A lot of individuals shy away from building a business because they are concerned about the risk involved. This is understandable but if you don’t take any risk at all then this could really end up going against you. If you aren’t sure if your business can handle risk, then it’s always worth talking to an accountant. They can then advise you on how much you can afford to lose, so you can work out the risk-reward factor.
Giving Up
Far too many people give up right when they are about to achieve success. Sure, if you don’t feel as though anything is working out for you then you may be tempted to cut your losses and try something else, but this is a bad idea. Instead, you need to keep on pushing through and giving it your all. Most corporate empires will have experienced some degree of failure during their time, but you can either learn from it or give up on yourself.
Not Choosing Reliable Vendors
Your business is only as good as your product, and for this reason, you have to make sure that you choose reliable vendors. For example, if you know that you need some black threaded pipe then don’t go to the first supplier you see. Instead, do your research and find someone who is able to provide you with a superior product and at a rock-bottom price. You’ll find them if you try hard enough, and when you do, you will be glad you took your time.
External Advisors
Hiring professionals and taking them on as part of your team is a smart move. Their advice will strengthen your brand and your company overall. If you rely too much on their advice however then you may end up doing yourself a disservice. At the end of the day, you need to remember that you are the chief decision-maker, and when the time comes for you to decide something, you have to make sure that you are comfortable. If you aren’t and solely rely on someone else for everything, then this may not be good for you at all.
Serving the Customer on Assumption
When running a business, you have to serve your customer on what they actually need, rather than on what you think they need. Consider trying to do some market research and also find out your customer tastes, wants and needs. This will help you to give them the result they are looking for and it will also help you to stay one step ahead of the competition.
Of course, there are many things that you can do to try and make your business more successful and by following the above tips you can be sure to avoid most of the mistakes that new entrepreneurs make. You also need to remember that you believe in your idea and that you are the driving force behind your company. With this comes a lot of responsibility, and although you do need to rely on others, you need to push yourself to take risks and to also trust your instinct. Only then will you become the entrepreneur that you were born to be.