If you are thinking about starting a new business, you will have no doubt conducted plenty of research. But no matter how much research you do, it feels like it is never enough. One of the best things you can do when setting up a company is learning from the mistakes others have made, rather than making them yourself. So, let’s take a look at the common errors you need to avoid.
Equating personal experience with business expertise – This is one mistake that a lot of new business owners make. Yes, you may have got into fitness in your early teens. Yes, you may have been entered into bodybuilding competitions by the time you were 18-years-old. You may have even worked at a local gym for a number of years. However, none of this equates to being able to run a fitness business. Yes, you know how to train others, and you know about the fitness side of things, but you need to learn about running your own business and growing a membership-based firm.
Miscalculating the time needed to launch – There are so many elements involved in launching your business. Not only do you need to deal with official company formation, but also you need to acquire all of your resources, from equipment to employees. That’s without even mentioning the product or service you are offering. There is so much that goes into launching a company, so make sure you give your business enough time.
Allowing belief to overrule your business plan – The backbone of every successful business is a solid business plan. It can be tempting to go with your gut instincts or to let your beliefs take over, however, if you don’t stick to your business plan, you are going to find yourself in big trouble.
Hiring the wrong team – While it can be tempting to offer your cousin, brother, and best friend a job, this could be the worst decision you ever make. You’re not a job centre (unless this is the business you’re opening, of course). You need to have the best talent. Your business’ success is going to be determined by the people that you have on board.
Not having a business bank account – Mixing personal and business finances can be a nightmare. Not only does it make it incredibly difficult for you to manage your finances, but also it makes it even harder for you to show your earnings and outgoings if you are required to do a tax audit. This could land you in huge trouble if it is deemed that you have disclosed or obscured information on purpose.
Trying to do too much, too soon – You know what they say; Rome wasn’t built in a day. If you overextend yourself, you will quickly run through your resources, and you will burn yourself out mentally. Remember, you are in this for the long haul.
If you can avoid the mistakes that have been mentioned above, you will find it much easier to reach your goals and have a smoother ride when setting up your new business.
