In the workforce, regardless of what industry you’re in, things always seem greener on the other side, especially when you’re not happy in your current working situation. Those who work 9 to 5s wish they had their own schedule to work off of and those who own their own business wish they have the consistency of a 9 to 5… This isn’t the case all the time but it’s funny how if people’s roles in the workforce were reversed, the majority of everyone would want their own jobs back!
The truth of the matter is that every job has its own set of challenges and in every position, you’re going to make mistakes. Some mistakes are avoidable but others are inevitable, especially in the entrepreneurial world. As an entrepreneur, you’re going to make mistakes… some mistakes are more costly than others but nonetheless, mistakes are going to be made. The real question is if you were handed the “cheat code” in a sense, to avoid some entrepreneurial mistakes, would you take that advice?
If you’re like lots of entrepreneurs, then you would gladly take the advice of entrepreneurs who came before you but there are some entrepreneurs who have a hard time accepting help and try to do it all themselves. According to CNBC, trying to do it all is the number one biggest mistake an entrepreneur can make… but it’s not the only mistake an entrepreneur can make.
There are actually several things an entrepreneur can do to make or break their business. Some mistakes can cost them lots of time and money while other mistakes can either do very little damage or sink the entire business. As a business owner, you want to avoid as many of these mistakes as you possibly can. Here’s some to steer clear from.
Not Investing in Business Insurance
Can you imagine the amount of money it would cost you if you were to get sued by a customer in comparison to what you’d pay per month to just to protect your business? The difference is astronomical! Business owners think that they can skimp out on business insurance simply because their assets are protected through an LLC.
Well, you assets might be covered but what if there’s a breach in data and all your customers’ information is just floating around in cyberspace? Better yet, what if a tornado hit and destroyed all your business equipment? How will you pay for your equipment and how will you earn income while your business is still recovering from the storm?
You can protect your business with a customized general liability policy to fit the needs of your business, plus it’s not an expense that will eat through your revenue, so don’t skimp out on business insurance because you don’t “need” it, because you do… just imagine the world of financial trouble you’d be in without it.
Pricing Your Products Too Low
The only way that you’re going to make any money is if you sell your products at the right price. Being an entrepreneur, you’re not only up against other small businesses in your industry but you’re also up against the big-name companies in your industry as well. So to beat out your competition, you sell your products at a lower price, thinking you’ll compensate by acquiring more customers.
Well, that idea sounds good but it’s actually one of the worst things you can do for your business, financially. Selling your business short isn’t going to make your business grow, it’s going to make it go under. You know the hard work that went into your business… you have to run and sell your products accordingly.
Not Paying Attention to Accounting
As a business owner, it’s not uncommon to hire an accountant to handle all of your business’ finances. The part where business owners go wrong is that when they hand the accounting over to their accountant, they completely stop paying attention to it… they figure the accountant will handle everything for them.
Just because you hire an accountant, doesn’t mean you have to stop checking in on your finances. By handing everything over is all the more reason to keep an even closer eye on things. Completely taking your eye off your business’ finances is the very thing that leads to embezzlement and cash flow issues. Be sure to learn everything you can about accounting before handing it off to an accountant… sometimes you need to check after them just to make sure everything is adding up as they should.
In the world of entrepreneurship, there are several mistakes you can make that can set your business’ growth back a bit but then there are some mistakes that can cost your business a great deal of money. From a financial standpoint, you want to stay vigilant in every aspect. From a growth standpoint, it’s better to be proactive than reactive.
So take the necessary steps to grow your business and if someone offers you advice on how to reach success, don’t dismiss what they have to say; listen and take heed because they’ve been in the trenches. If they didn’t see that you and your business was headed in that direction, they wouldn’t have offered the advice.