5 Mistakes New Small Business Owners Commonly Make

Making the decision to leave your 9 to 5 office job and trade it in for starting your own business is a huge undertaking all in itself. You have the pressures of not looking like an idiot for leaving a steady source of income, plus you have this looming cloud of doubt that your business will fail, and believe it or not, there are people out there who sit around waiting for your business to fail just so they can tell you “I told you so.”

Those who want to see you fail are people you don’t need to be around because the reality of starting your own business means that you’re going to make mistakes, especially if this is your first entrepreneurial venture… it’s actually inevitable, so just prepare yourself for it. And when you do make your mistakes, the last thing you need to hear is someone rubbing it in your face.

Now, the good news about starting your own business is that there are several small business owners who’ve done it before you. Meaning they’ve been there, done that; they’ve made all the mistakes to be made in the entrepreneurial world… some learned from their mistakes and proceeded on to entrepreneurial success while others failed and never tried again.

This is where you have the advantage. As a future small business owner, because others have made common entrepreneurial mistakes in the past, that simply means that you can learn from their mistakes and hopefully not make the same mistakes they did. But can you guess what the biggest mistake is that most new entrepreneurs make? One of the biggest mistakes most new entrepreneurs make is trying to do it all.

As a small business owner it’s important to understand that while your business is YOUR business, it’s also important to understand that you can’t do it all and that it’s okay to ask for help. To avoid this mistake and avoid messing up an area of your business that you know nothing about, hire professionals for assistance in areas you’re inexperienced in. Aside from trying to do it all, take a look at the top five biggest mistakes that new small business owners tend to make.

Foregoing Proper Planning

There’s a saying that goes “if you fail to plan, you’re planning to fail,” and in the world of business entrepreneurship, that statement could be truer, especially when it’s your first solo business venture. You need to create a reliable financial plan, establish several marketing strategies and analyze the market. Then, you can develop an effective business plan. By developing a proper business plan for your startup, you’re going to have a good experience getting loans and making important business decisions. If you don’t know how to write a business plan take a look at how you can improve your business plan development skills.

Not Getting Business Insurance

Whether you have a brick-and-mortar store or an e-commerce store, getting business insurance is a very necessary part of owning your own business. From bodily injury to property damage, you need to at least purchase general liability insurance to protect you from incidents like that. The good news is that business insurance isn’t even an expensive purchase but the money you spend on it will be money well-spent

Not Having A Website

If you know anything about owning a business in the slightest bit, then you know that people all over the world do the majority of their shopping online, so not having a website for your business is just silly. How do you think people look up products or services? Well, they certainly don’t flip through dozens of pages in that thick yellow pages book! If you want your business to be found or even looked at as a credible business, you have to get your business a website. Once you design an attractive site, learn how to get traffic to your website. Then, you can earn profits and excel in your industry online.

Not Separating Business And Personal Finances

Lots of small business owners tend to operate their personal and business finances from one account and that’s one of the biggest financial mistakes a small business owner can make. The moment your business makes its first sale, you need to establish a completely separate account that’s strictly designated to your business. It doesn’t necessarily have to be a business account but it does need to be a separate checking account for business-related transactions… you’ll need to be able to account for every dollar coming and going through your account for your business.

Not Investing In Marketing

Marketing is an integral part of business growth that lots of small businesses don’t give enough credit to. Just think about it… without proper marketing, how will anyone even know your business exists.  Marketing with social media is a great way to stay connected to customers on a more personal and social level. You can keep them updated on new products or services and let them know of any sales they need to “jump on” before it ends. SEO and Google Ads are also ways to make your brand more visible to the general public who might be looking for products or services you provide.

Basically, owning a business without a strong and efficient marketing plan is entrepreneurial suicide. If you don’t know how to properly market your business, seek help from the pros… remember, trying to do it all was the biggest mistake to avoid, according to CNBC, so take their advice and get marketing help!