Avoid these Entrepreneur Mistakes to Keep Growing
You wouldn’t have gotten this far without a good plan. Starting a new business takes a lot of effort, and if you manage to take flight, you’ve gotten further than most. The success of that accomplishment can have you flying pretty high. But be careful not to drop into some common pitfalls for new business owners. It’s important to keep your eyes peeled and your hands on the controls, so that a slip-up doesn’t send you crashing.
Luckily, you have a flight plan chartered for you. You can look at the mistakes other businesses have made, and use that as guidance for arriving at your own destination for your business relatively unscathed. Because you learn from others, you won’t have to accept the hard knocks they went through. Taking a minute to gain some knowledge will save you time and money in the long run. You can take that time and money and funnel it into your business, instead of using it to put out fires. Let us present you with a few common scenarios, then show you the fix.
Avoid these Entrepreneur Mistakes to Keep Growing
Resting On Your Plan
Problem 1:
You’re a big thinker, but are you a far thinker? Have you looked at the financial predictions for your business a year, 3 years, or even 10 years down the road? If you’re just looking at launching your product, you’re being extremely shortsighted. Or, you may have an end goal in mind, but no vision of the path in between.
The Answer:
Not only will thinking ahead help you establish your desires and goals for your business, they will give you a reality check for what your business really can be. If you’re able, enlist a financial advisor to make sure your predictions are coming from more than a magic ball. This will help you make grounded decisions.
Problem 2:
Coming up with a solid business plan is a must. However, having a plan in place can give you a false sense of security. Nothing’s gonna go wrong; I have a plan! In actuality, neither life nor business goes according to plan.
The Answer:
Revisit your business plan often. Stay aware of changes in your industry, and invite those changes into your plan. Don’t be afraid to revise. That said, maintain a sense of stability. Don’t toss the plan out, just tweak it as necessary.
Problem 3:
You’re throwing all you have into your business. You’ve always heard that becoming an entrepreneur takes incredible sacrifice, and you’ve never shied away from that. Who could blame you? Isn’t the idea to give everything you do 100%? That’s the principal you feel will help you succeed above your competitors. Well, giving it your all could mean a lot of things. If it means you’re sinking a lot of your own money into your business, that could spell trouble.
The Answer:
This one is simple. Be frugal. Make sure you are personally, financially sound. There is always some financial risk with starting a new business, but the word “ruin” should never be in your vocabulary. Be a good steward of the loans or credit extended to you, and use it wisely. Don’t get so excited about the possibilities that you neglect to exercise discipline. Stick to a budget or financial plan. Which brings us to our next issue…
Messing Up Your Money
Problem 1:
The pros make it look so easy, don’t they? You look at a flashy, easy-living tycoon and you think, “I could do that.” And sure you could, but that tycoon put in a lot of time, effort and money before they got to the point that they were relaxing on their private jet. It doesn’t come easily and doesn’t come nearly as quickly as you might think. You’re going to struggle for a long while.
The Answer:
Unfortunately, there’s no tip to avoid this. You’re just going to have to suffer and grind. The thing is to be aware that, while the grind is forever, the suffering is (hopefully) only temporary. Have an accurate view of what you’re taking on, keep that view, and you should be fine. Instant gratification is the enemy.
Problem 2:
Hire a plumber? Pfffft. You’ve got this. Who’s got a wrench? Hand it over.
Yeah. This is a mistake. You’re about to waste an afternoon and probably end up with, well, waste all over the floor.
The Answer:
Don’t hold on so tight to every dime that you can’t see reason. Know when to bow out and let a professional handle it. Your time and your floors are precious.
Problem 3:
Your office really, really needs a widescreen television. Also, the glossier business cards are a must. You know that making a good first impression is important, so you’re spending on making an impression first. But you need to have substance behind that impression, and if you don’t, clients you earned with a veneer will turn away quickly.
The Answer:
Keeping up with the Joneses (or the “Jones, Inc.”) is not the name of the game in the beginning. Focus on building your product or service – make an impression with that, not your fancy statue out front. You’ll get there. Focus on putting money into what brings proven results. Be proof-driven, not envious.
Failing to Lead
Problem 1:
You need help. Now. And there aren’t exactly a line of applicants. You haven’t had this much trouble getting someone to take a chance on you since you were going through the loan application process. You need a team, and you have money to pay for them. You figure you’ll just take whoever comes sniffing at your door.
The Answer:
Leadership begins with selecting the best people to lead. Look for Mr. or Ms. Right, not Mr. or Ms. Right Now. Do we really need to go over how much it costs to hire and train an employee? Don’t let those two little words, “turn over,” become a problem for you. It’s not an apple pastry we’re talking about, here.
Problem 2:
The problem above can lead straight to this problem if you’re not careful. If you’ve hired a patchwork crew that doesn’t have much experience or drive, you can find yourself still doing all the work. We call this “micromanaging,” and not only will your employees not appreciate it, but you’ll also be exhausted.
The Answer:
See The Answer to Problem 1 above. Hire employees you can trust. Then? Trust them. It’s a miracle! When you let go and let others, your life, and your business will run much smoother. It may not be exactly the way you would have it, but as long as the job is getting done, your standards are being met on the larger issues, and customers are happy, you can give it a rest.
Problem 3:
Once again, the previous problem can feed this problem. How long is your workday? Does that leave you any time to sleep? Eat? Enjoy your family and friends? Downtime is actually a necessity. You must recharge in order to run your business, or you’ll find out that it’s lights out for your entrepreneurship.
The Answer:
Set boundaries. Set your phone to do not disturb during certain hours or, better yet, turn it off. Refuse to take your work home. Set up sacred spaces that work does not touch. Separate your work and home life completely. Even though your business feels closer to you than just another job, it may even feel like an extension of you, remember it is always only a part, not the whole of you.
Turning Down TaxBandits
Problem:
You need to do your taxes, and you’ve decided to do it yourself. Or, you’ve decided to shell out way too much money to hire an expert to do it for you. Now, you’re either knee-deep in the muck of all those tricky calculations, or flat broke. Isn’t there a rose between these two thorns? There is.
The Answer:
TaxBandits is an e-filing tax service that helps individuals, business owners, and organizations file their tax forms. We have an expansive offering of tax forms to place at your fingertips, all with an intuitive, easy guide. You’ll be walked through filling out your forms in a way that makes sense to you, and you’ll have the assurance that everything is being handled with accuracy. If you skip one mistake, let this be it. Give the friendly folks at TaxBandits a call today, or visit us online.
