For many people, starting their own business is a dream come true. That dream can rapidly turn into a nightmare if you don't avoid some of the common mistakes new entrepreneurs make.
1. Too little cash
Most start-up small businesses are not properly capitalized. Before starting your business, sit down and estimate how much you think it will cost to get started. Now double that number. That is the amount you should have in reserve for your business.
2. Thinking small
You may be the only person working in your business at first. You could be competing against larger corporations who offer the same type of service or product. You will want to focus on the advantages a small company can offer, such as greater expertise and speed of execution. You're not small, you are personalized.
3. Skimping on technology
Having the latest in technology gadgets can be expensive. However, if you have the latest technology gadgets you will be able to respond faster and ultimately it will save you money in the long run.
4. Underestimating the importance of sales
For small business owners, the focus should be on sales and revenues when you are first starting out. No matter the size of the company, you will need to be or hire a dedicated sales pro. If you can't sell your product or service, your company will not be successful.
5. Losing focus
Before starting your business, you will need to have a vision as to the direction you want your company to ultimately go. The more focused on that vision you are, the greater the chance your company will succeed. Develop a plan of specific activities that will lead your company in the direction of your vision.