Almost every startup or small-business owners in any field share many of the same challenges. In this section, I have listed some common mistakes that are made again and again by people starting their own startup or venture. Let’s see one by one and try to focus on possible recommendations to avoid those.
1. Don’t bet the house on your business.
Avoid loans, business structures or anything else that can threaten your personal finances. That means be very careful when you use your house or car as collateral for a loan. We recommend that you seriously consider buying liability insurance to protect your personal assets should a client get hurt on your property, or you are involved in a lawsuit.
2. Don’t sign on the dotted line without reading the fine print.
From leases to partnership agreements to tax documents, always make sure that you carefully read any type of legal agreement. If you have any questions at all, consult a professional—accountant, attorney or financial adviser. It’s a cliche, but always read the fine print.
3. Don’t be a lone ranger.
One of the great challenges of the self-employed is keeping a network of colleagues. Make sure you make time to have lunch, attend workshops or just generally keep in touch with your classmates from massage school, your former coworkers, or friends who run similar types of small businesses. Sometimes our best advisers are those who can tell us the truth.
If you have never faced any of these challenges before as an owner of startup, It is possible you are not
4. Don’t put all your eggs in one basket.
Always have a Plan B.As much as you want your small business to succeed, and no matter how good your odds of making it work, it never hurts to have a backup plan in case something goes awry—such as a recession, an illness or an unexpected bout of competition. Our advice? Have the backup, but go forward with full confidence. It will help you with the “sleep” factor, an old truism about investing: If you can’t sleep at night, don’t do it.
5. Don’t play fast and loose with your taxes.
You’re the boss now, and you have to pay all those taxes that your employer used to. And you have to do it quarterly.The key? Get a good accountant or tax adviser.You never want to invite Uncle Sam to an audit.
6. Don’t get swamped by paperwork.
Part of running a good business is keeping good records. So get a good filing system, a good bookkeeping system and an excellent office protocol system. It will help you with your taxes, your profits and your customers.
7. Don’t skip the insurance.
Part of running a business is learning how to protect your assets. And part of protecting your assets means buying the right kind of insurance, including major medical, liability and disability. (If you choose not to buy disability, make sure you have a surplus of emergency cash in case of an accident or illness.)
8. Don’t forget why you’re in the business.
Since it is the most important thing to remember, set your goals, and review them from time to time. We can get so caught up in working, we can forget to smell the flowers and enjoy this process of life.
These are few common mistakes an entrepreneur should keep safe distance with. For first time business owner we already published guideline on this blog. So if you want to start your own business, we urge you to have a look upon it. You can also download some helpful e-books and must have templates totally free from our newly launched ‘Download Freebies’ section. Click here to Download free e-books, business templates and spreadsheets in order to browse our collection.