When you are new to business, there are obviously a lot of things to learn. Though experience may be a great teacher, one is wiser if one can anticipate problems even before they happen.
There are some vital areas of which every first-time business owner must be aware to avoid the common pitfalls of entrepreneurship.
Importance of budget
Aside from having a great product or service, plus the right team of people to help you sell it, an entrepreneur must also be aware of how to keep the capital rolling. If you are not able to budget your finances wisely, you will not be able to purchase the needed supplies nor pay your people on time.
Avoiding the temptation to overspend
It is very important to steer clear of overspending. As a first-time business owner, you may be tempted to overdo things within your store like purchase a lot of expensive furniture and fixtures or get the more expensive tiles to go along with the granite counter. Though in your mind the store or office might seem a lot nicer, customers might not necessarily notice all the minute details as they are more focused on what it is they came to get and the service provided to them.
Getting the most marketing bang for your buck
First-time business owners must get all the exposure they can to establish themselves with their target market. These days, online or digital marketing is a wise investment for start-up companies. However, there are also other efficient, cost-effective ways of marketing your brand – consider options such as purchasing magnets, wholesale, and getting your logo or company name printed on them, for instance. This is an inexpensive way to create brand recall and strengthen your identity.
Being conscious of what is around
It also pays to be on the lookout for ways to save, whenever possible. A big money drainer is wasted utility costs because of negligence (e.g. perennially running equipment) or damage (e.g. leaky faucets). Requiring your staff to be more cost-conscious – say, to turn off utilities, when not in use – will help both your business and even the environment, in the long run.
Looking for bargains
Another way to save is to purchase equipment and supplies wholesale. It is best to get what you need, in bulk, to last about three months of business rather than purchase these items piece by piece, as the unit cost may be higher.
Maintaining good credit
Finally, it makes a lot of sense to have a good credit line with a bank. In the bad times, the available money will keep you afloat. And in the good times, this will allow you to expand at a moment’s notice when those big orders come in.
In business, it pays to be prepared. It is best to avoid the problems before they occur to ensure a smoother ride for you and your new company.