You’re likely excited to get things rolling, start your entrepreneurial journey, or expand your growing business. However, there are a few common business mistakes you should avoid in order to give yourself the best shot at success.
Not Making A Business Plan
A ship never sets sail without a destination, just as a business should never start without a plan.
Exploring the finer details of your business’ goals, finances, and products will ensure you know exactly where you want to go and how you’ll get there. Business plans don’t need to be 100-page encyclopedias, but don’t be afraid to really dedicate some time to it.
A business plan includes:
- An executive summary
- Company description
- Business goals
- Product or service description
- Market research
- Marketing plan
- Sales plan
- Financial analysis
- Financial projections
It might seem like a lot, but you’ve heard the old adage: failing to plan, is planning to fail. You can find more information (and a template) here.
Not Being Agile
Being proactive is always the best policy, but when you’re just starting out, it’s hard to know what that means yet. The second-best thing you can be is reactive and agile.
If you’re new to business, mistakes are going to be made. Make the best plan possible, but be ready to shift when necessary.
For example, you might have done some research on your product pricing and decided to set an amount similar to your competitors. However, you soon find that your price isn’t giving you the returns needed to sustain your business. Good thing you have a pricing strategy in place, right?
Going It Alone
Entrepreneurs can sometimes be a little overconfident. You sort of need to be if you’re starting a business. However, don’t be afraid to ask for help.
Support can mean a lot of different things when it comes to starting a business. Seeking a mentor, hiring consultants, or inviting a group of trusted and seasoned people to become advisors.
When your business starts to take off (as we know it will), make sure your financial plan also includes room to grow your employee base. Doing everything yourself is where you’re going to start, but if you do it for too long it can take a toll on your mental and physical health.
Your business is becoming successful, you’ve earned some time for yourself.
Putting Good Money To Bad Use
With nearly 30% of startups failing because they run out of money, making sure you aren’t wasting any of those precious dollars is important.
There can be a lot of things you really want for your business, but it just isn’t the right time for it. Expanding to a bigger office, premature scaling, and expensive tools you don’t really need will balloon your budget without offering much in return.
Check out our other blog about the top expenses to avoid for new businesses.
Another way to make sure your bottom line stays healthy and avoid common business mistakes is by taking advantage of tax credits. Combining those last two points, you should find a trusted expert.
Who is that trusted expert? Maxim Innovation.
You would be surprised what expenses can qualify for a SR&ED tax credit. Find out more and stop leaving money on the table.