Common Mistakes made by First-time Business Owners

Hoop Dreams

1. Fantasy world

It would appear that some solo entrepreneurs use their hobby to create a world where they are happy, safe and semi-secure.

In doing so, they also create an aura around themselves where they are convinced that nothing is important, there are no deadlines and every job is a new friend.

Whilst many franchisee owners would love to find this utopia, solo entrepreneurs cannot afford to be so lax. It would not be rude of me to say that this lazy and childish attitude to running a business is why many small businesses fail in their first year.

2. No budget

Whilst it is possible to create a business within a limited budget, spending your profits before they are recorded on your books is not smart business.

Even if you don’t hold a registered business name nor a TFN, a business that displays regular expenditure and income is always going to go garner more attention!

3. Rely too heavily on one form of networking : the Internet

Yes, we live in a time where Internet-advertising is more important than being printing in the white pages!

Yet it’s not the only option. Cold calling isn’t dead, it’s just resting between streets. It’s time to reprint the flyers, stuff a few letter-boxes, put them up in shop windows. When you restrict your advertising options, you limit your possible customers.

Techno Jump

4. Believe the world will find and hire them at day-#1.

The only business that is an over-night success is the one that spent many quiet years building itself from the ground up.

But success is relative to your wants, needs, debts and pleasure. Some people find success in each step – mostly because they never expected to get that far!

I know businesses that are yet to clear a profit because the tools and equipment are upgraded more often than sales are made. Possibly sounds stupid- yet many photographers enjoy shooting more than they enjoy making money.

If your aim is to hit the ground running, make sure the engines are firing on all pistons, plus you have stamina for a long journey.

Does this sound like you?

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