Early Mistakes: What NOT to Do in Your New Business￼
Mistakes are part and parcel of day-to-day life, and the same rules apply when it comes to businesses. In fact, without them, many companies would struggle to grow at any sort of scale.
However, some mistakes are more “unnecessary” than others. Some errors are there for a company to learn from, whereas others are nuisances and should be avoided. Today’s article will focus on the latter as we look at some need-to-avoid mistakes as part of your new business.
Mistake #1 – Trying to take everything on yourself
In the early days of a business, it’s easy to want to do everything yourself. After all, you’re the one with the big vision, and it’s your name on the door, so why wouldn’t you want to be in control of every aspect?
The problem with this way of thinking is that it’s simply not sustainable in the long term. At some point, you’re going to need to start delegating tasks and giving other people responsibility for specific business areas.
Not only will this free up your time so that you can focus on the big-picture stuff, but it will also allow your business to grow and scale more effectively.
Sure, you need to save the pennies, but trying to juggle accountancy tasks, arrange any extra insurance you might need, and chase for payments and the general day-to-day running of your business will be nigh-on impossible.
Mistake #2 – Not thinking about the big picture
When you’re in the thick of things, it’s easy to get bogged down in the nitty-gritty details and lose sight of the big picture.
However, if you want your business to be successful in the long-term, you must take a step back occasionally and think about where you want to be in twelve months, five years, or ten years.
What are your long-term goals and objectives? What does success look like to you? By taking the time to answer these kinds of questions, you’ll be able to ensure that your business is heading in the right direction.
Mistake #3 – Losing sight of cash flow
Cash flow is the lifeblood of any business, so you must keep a close eye on it at all times.
In the early days, it’s easy to get caught up in the excitement of making sales and forget about the importance of getting paid on time. However, if you don’t have a good system for chasing payments, you’ll quickly find yourself in hot water.
To avoid this, make sure that you invoice your customers promptly and chase up any outstanding payments as soon as possible.
Mistake #4 – Hiring too quickly
You must be careful about who you hire when you’re first starting. After all, you don’t want to be shelling out for salaries when you’re not bringing in enough revenue to cover them.
Of course, there will be times when you need to bite the bullet and take on staff, but in the early days, it’s often best to outsource tasks where possible and take advantage of the booming gig economy. This will help you keep your costs down and give you more flexibility.