Tag Archive | Business Planning

Top Mistakes People Make When Launching Their Own Business

 

mistakesGiven the rate of failure for startup companies, it goes without saying that this is just the tip of the iceberg in terms of problems new companies can experience. However, while this may not be a complete list, it is a good starting point to use as a “what not to do” when thinking of launching your new idea onto the business world.

Mistake #1: Entering An Area They Are Unqualified For

Let’s say that someone has heard that there is always a call for recruitment companies. It’s a profitable sector of society and there will always be a call for such kind of services. So, on the surface of it, that seems like a good business area to try and start a company.

However, it’s only a good area to launch a business into if you have an experience in recruitment. If you don’t, then you’re not only going to be trying to learn an entirely new industry, but you’re going to be doing it when your business aspirations and finances are on the line.

A surprising number of people throw themselves into a sector as they have heard it’s profitable, with no further thought beyond that. To truly make a business work, you need a background of experience in that area to call on.

Mistake #2: Knowing It All = Knowing Nothing

If you’re a doctor, you might think that you know all there is to know about opening your own surgery. On some levels, that’s entirely true – you’ve avoided mistake number one by entering a sector you actually have some experience in. Added to that, there’s no doubt that you’ve got the medical skills that you need to get the job done.knowing nothing

However, this doesn’t mean that you know all there is to know about the various aspects that go into running a business. Knowing the ins and outs of the endocrine system doesn’t mean you have a clue about healthcare interior design; being able to diagnose an infection on the spot isn’t going to prep you for dealing with business finances.

As this example shows, just because you have requisite expertise doesn’t mean you know how to run a business. Don’t think you know everything; you’re going to need help and to be able to learn on the job. If that sounds like your idea of hell, you might want to think again about whether a business is a viable step for you.

Mistake #3: Starting Too Big

By far the biggest mistake you can make when launching a business is starting with ideas that are too grand. Even if you can convince investors to get on your side, you have to try and keep your thoughts in line with the realities of the situation. You’re new to the business world and while you might have the best idea in the world, that doesn’t mean you have a proven track record of making it a reality.

Always look to make your business planning begin with a small scale, just to prove that you can do it. Going small, to begin with, will give you the chance to problem solve without being overwhelmed, ironing out the kinks for the expansion that is inevitably in your future.

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Business Planning; Cutting Costs Across The Board

 

good-businessRunning a business is usually an expensive game. There are small costs, which need to be covered, on a daily basis. Then, there are larger costs. Ones that take a huge chunk out of your revenue and keep you from growing. These don’t have to consume you, though. Instead, you can start working towards lowering these costs.

Wiping them out will take some time; but, it will be worth it. To help you out, this post will be going through three ways that can be used to make the business you’re running as cheap as possible.

Employees

One of the biggest expenses for businesses is the employees that they hire. If you have anyone working under you; you will already know the costs. But, if not; you’re in a good position to avoid being caught. Instead of hiring people in the early days of business, it’s much better to learn to do the work yourself.

For example, you may own a factory that produces plastic goods. You have a staff member leave, who only performed one task. The time their job will take is minimal; so you may as well take it on. Learning new skills like this is usually a case of getting some education.

Finding things like injection molding seminars is easy. There are loads of companies out there that offer online courses. And, loads of people out there that are willing to help. So, you just need to put your student hat back on and go back to school.

Outsourcing

Of course, there will be a host of jobs that will take far too long to learn for you to do yourself. For example, web design and computer programming will take many years for someone to master. These skills won’t be picked up overnight. So, it’s best to get someone else to help you.

For work like this, though; you don’t have to hire anyone on a permanent basis. Instead, you can find cheap workers on websites like Freelance.com. Just be sure to have a contract with anyone that you work with on a site like this.

Business Planning

And, last but by no means least comes a way to save money that very few businesses consider; change. In a lot of cases, businesses will be leaking money because they use bad methods or old machinery to do their work. Some simple changes to the way your business works can make a huge difference.

To start, you’ll need to do some assessment of your business. Try to find areas that you think could be improved. Then, with this information, you can start to find new ways to get the work done. Thinking about the future at this stage is very wise. You may find that something is expensive now. But, it could more than pay for itself later on.

Hopefully, this will give you a good idea of what needs to be done; if you want to start saving money within your business. A lot of companies ignore these areas. But, unfortunately, this can halt growth in its tracks. And, it will almost certainly cost you more of your profit.