Opening and managing your own business is not an easy feat. The hardest part are often experienced during the start-up phase, when you're business are barely growing its roots in the market scene.
Several people had been down that path you're travelling, but only a handful few were able to emerge as winners. The difference with successful entrepreneurs' story, and what you need to follow through with your own fairy tale, is that they were able to identify the mistakes they did and do something to straighten out their mess.
Here are top three most common small business mistakes that wolf down entrepreneurs.
Relying on your own Cash for Capital
You will no doubt shed some of your own cash when starting a business. But this doesn't mean that you should just rely on your own bank account to establish your business. During the baby stage of your company, you can ask help from close friends or relatives, but as you progress up the growth chart, there will come a time that you must look for other financial sources to sustain your operations. If you try to make up with your company's profit, the tendency is that you'll miss out chances for growth. Remember that your competitors are also on the run, and if you fail to keep up with their pace, the tendency is you'll be left behind forever.
Looking for potential investors will be your only choice.
Confusing your own Self as the Company
Equating I with the company is wrong, says Leah Brown, CEO of A10 Clinical to Forbes.
According to Leah, entrepreneurs must learn to differentiate between themselves as a person and the company as an entity. Otherwise, this can cause them to stagger as they will tend to feel down once the company encounters rough times along the road. She says that even if the business is not doing well, an entrepreneur must not let his self get affected and must at all period exhibit audacity and self-confidence.
Don't treat yourself as the company. Instead, consider yourself as a worker doing things for the business. Give yourself a salary and differentiate your personal expenses from your business expense as well.
Not taking advantage of available resources
The rules for hunting apply to business as well. While on a jungle, hunters make use of their environment to track down and capture their prey. Similarly, you must take advantage of your environment and exhaust all resources at your disposal to reach your business goal.
The tragedy of the modern world is that many businesses fail despite the presence of varied and relatively cheaper technological tools available. Do you know why? It is not always because the demand is diminishing, or that their products are irrelevant. Oftentimes, it is because entrepreneurs fail to properly utilize the available tools or technologies for their own end.
Consider for instance small businesses who would rather hire their own accountants, sales team, or marketing specialists. What happens is that they spend a huge amount of money that they cannot afford to lose (because the business is small) for employees' salaries, equipments, and office spaces. This could have been avoided if they had just looked around what most businesses around are doing – hiring cheaper outsourced labor from BPO firms or agencies.
We are not saying that all businesses can adopt a B2B outsourcing model. It's just that during these rough times, entrepreneurs must have a knack to identify how they can get optimum results using available resources.
For all you know, you might have been committing these same mistakes without realizing them. Well if you have, maybe it's time to wake up from your slumber and start revising how you move for your business.
Cheers to your success!