Starting a business can be an invigorating and challenging undertaking. While many of us love the idea of working for ourselves and not answering to a traditional boss, owning a business comes with a heavy share of responsibility. If you’ve decided you want to start your own business, there are a number of first-time mistakes that people often make. What are they and how can you avoid letting these faux pas ruin your chances at success?
- Don’t Neglect Relationships
Whether with investors, employees or potential customers, one huge business mistake is to neglect the importance of business relations. A business relies on clients, not contracts, in order to stay successful. If you treat your clients, investors or suppliers with disrespect, you’re burning bridges that stand between you and financial success. Always draft a company code of conduct for relationships that highlights the importance of personal professionalism and mutual respect, and hold employees to that code wherever possible. As the owner of a company, you should consider all relations with outside entities a representation of yourself.
- Don’t Try To Do It All
It’s wonderful to be independent. If you didn’t want to be independent, you wouldn’t start your own business. It’s natural for new business owners to want to take on everything and make it work. Unfortunately, no one is able to do absolutely everything, business owner or not. Allow yourself too have and honour your own limitations. If you’re not an accountant, hire one. If you’re not an experienced contractor, don’t try to undertake building renovations. Be honest with yourself about your skills and hire someone to help you with the rest, otherwise your new business could start out with you overstretched and unable to take on the projects that really matter.
- Don’t Miscalculate Your Start Up Capital
Any new business needs to have money in order to make money. If you start your business before you have adequate funding to do it well, you’re essentially setting yourself up for failure. Consider money you will need for business licences, operating fees, employee wages and store front rental where applicable.. If you understate the amount you need when you begin your business, you’re only hurting your own operations.
- Don’t Operate Without Insurance
Accidents can happen anytime. Tragedies don’t wait for your business to become established. Business insurance is one of the most important aspects of owning and operating a company, no matter what your dream is. Remember that this company is your financial responsibility, and consider how much you stand to lose in case of a robbery or other incident. Business insurance makes for good business practice.
This guest post is from Allison with BusinessInsurance.org, where you can go to learn more about purchasing business insurnace for your new smalll business.