Building your own startup business is not easy. Even a little mistake can become costly for your business. Fortunately, you can learn effective entrepreneurial skills from the mistakes of others. Here are some of the common mistakes that can easily be avoided with the right preparation and awareness.
1. Not Adequately Planning
You may have a great business idea, but without a solid plan in place, you will be operating blindly without a roadmap. You should consider conducting market research to validate your business idea. This research can help you understand your limitations, market potential, and competition. Your business plan should also help you recognize the potential risk and projected finances. That way, you can adequately plan for anticipated business expenses, such as marketing, operational and human resources. Failure to do so can be detrimental to your startup business.
2. Failing to Delegate
As a new entrepreneur, you may be wearing many hats and trying to do everything yourself to cut costs. However, you should recognize that you may not have the skills necessary to perform all these tasks. Successful entrepreneurs are great at recognizing their strengths and shortcomings, delegating the tasks that they are not good at, and focusing on their strengths. Similarly, you should learn to let go and delegate tasks to people who are better suited for them. Bring on team members with expertise in areas in which you’re not proficient, while focus on exploring new partnerships and growth opportunities for your business.
3. Avoiding New Technology
New technology can help streamline your business operations efficiently, save substantial human resource time and energy, and even help you save money. But, new technology can be intimidating at first to small business owners. Not surprisingly, failing to adapt to technological advances can and most likely will hurt your business. If your competitors are using tools that you avoid or dismiss as unnecessary, then your business won’t be competitive for too long. Don’t get stuck in your old ways. Keep up with the latest trends in technology to elevate your business and gain a competitive advantage.
4. Underestimating Startup Costs and Ignoring Your Cash Flow
Many new startups fail because they start with too little capital or eventually run out of cash. It is important to plan for and manage your finances wisely. Without adequate financial management, you won’t have the visibility needed for sound business decisions. Your expenses can quickly add up, and untracked payments can easily create confusion. Using a financial management software for bookkeeping, such as the Finbooth software solution, can help you track your expenses, income and cash flow, and take control of your business’ financial future.
5. Not Relying on the Expertise of Professionals
Accounting and bookkeeping can be complex and time consuming. But, they don’t have to be. Rely on the expertise of certified accountants to review your books and evaluate if your business is in good shape for tax season. In addition to providing businesses with the option for do-it-yourself bookkeeping, Finbooth provides instant, easy access to certified accountants located around the world. They can help you with a variety of tasks, including bookkeeping, month-end closure, tax compliance, among others. Reduce time and effort to find quality financial professionals. Finbooth’s network of independent on-demand accountants are here to help so you can concentrate on your primary objective: growing a successful business.
The road to success requires passion, perseverance and learning from your and others’ mistakes. Avoid these 5 common mistakes to help you sustain your growth. As you build your startup, know that Finbooth is here to enhance your business operations, help you manage your finances, and connect you with certified accountants.
Information contained in this post does not constitute legal, business, or tax advice. Please contact your financial or legal advisor for information specific to your business. Finbooth assumes no liability for actions taken in reliance upon the information contained in this post.