There are many benefits to running your own business but this is not for everyone. It takes a certain type of person to be able to manage all the paperwork, track their income and outgoings and make the important business decisions. Here are five major pitfalls to running your own business.
More Than Just a Job
This is not just a quick way to make money. You should first and foremost complete the company registration for your business. You will need to help your business grow to build profit and become successful. Taking a hands-on approach is extremely important but that means understanding the way a business works, understanding the type of business you are running and learning all about various marketing techniques. It is more than just a job.
Not Enough Business Experience
You may have experience in the job that you will be doing, but not enough experience in the business side of things. For example, being an excellent electrician does not mean that your electrical repair business will succeed. Learning the business side takes time, and time that not everyone has or is willing to put in.
Franchising or Building from Scratch?
Should you build your business from the ground up or buy into a franchise? Too many people believe that building something is better because it will cost less in the short term. The problem is that you need to market that and make the name become a brand that everyone knows about. If you buy into franchise your business, the ground work has already been done for you. The brand is known and people will come – you just then need to make sure you help that franchise grow
Focusing Too Much on Profit
Too many people focus on gaining money and try to cut the amount that they spend. They will hire one less employee with the idea that they will do the work themselves. They will buy cheaper products to save on finances. However, there is truth in “you get what you pay for”. Pay your staff a liveable wage and they are more likely to help your business grow. Hire that extra person so you can concentrate on the business side of the company. If you focus too much on trying to save money, you will end up losing profit by having fewer customers and now helping your business expand.
Think that you will save money on your business by avoiding the testing process of products? How do you know that they will work as you expected? Testing products and services, your website and other programs and procedures is extremely important. This helps you find the flaws to fix before customers start complaining and demanding their money back. Companies lose more business by not testing than they do profit by doing the testing.
Start your business as you mean to continue. Put the effort in to growing it and give your employees a reason to help you. If you fail to put the effort in, there will be now growth in profit from one year to the next.
It is not uncommon for business owners to face financial crisis in their business at some stage and in such a case Real Business Rescue’s team of qualified insolvency practitioners will be able to support and advise you accordingly.