Starting, running and fight tooth and nail for a business is about as topsy-turvy as anything can ever get, but that’s the oath a wannabe-entrepreneur makes when they decide to run with an idea. And the reason it’s so up and down and roller-coaster is because it is so saturated with mistakes. From hiring the wrong people to not checking the quality of a product before producing it in bulk, there’s a hundred and one pitfalls waiting for you.
But just because they are almost unavoidable does not mean they are going to cripple your business, not if you know what the most common mistakes are and how to prevent them from getting out of control.
So, with that in mind, here are the most costly mistakes an entrepreneur can make and what you can do about them:
- Undervaluing What You Offer
When people are starting out and starting to price their products (or services) it can be all too tempting to base the price tag on what everyone else is doing. But trying to undercut the market by offering the cheapest solution is not a good strategy. Instead, what you need to do is take all your expenses into account. This includes your overheads, the cost of your goods, your hiring expenses, marketing costs, and everything else. At the end of the day, the question you need to ask yourself is, “does this profit margin allow me to sustain and grow my business?”
- Employees Need To Walk The Walk
When hiring people, you no doubt have an interview process of sorts in place. You probably look at their resumes and then call them in for an interview or two. The problem is, there are a lot of people that can talk the talk but not walk the walk. That’s not their fault, though. It’s yours. And it’s a waste of time and money. That’s why you need to delve deeper, improve your interview process, chase up referrals, perform background checks and test your candidates by asking them how they plan to execute any initiatives they are promising.
- No One Fights The Law And Wins
There are a thousand different niches in which knowing the law is imperative for making your business watertight. Employee contracts, supplier agreements, GDPR, compliance, product safety and so much more, as you’ll see from a whistlestop at DicksonLegal.com. Whatever it is, not being thorough on this part of your business structure can be extremely costly. What’s more, they’re usually the result of inexperience. Our advice: hire a business attorney. Law is not something you can learn by scrolling through Wikipedia.
- Put Financial Planning At The Front
If there is one thing every entrepreneur has in common, it’s a sleepless night wondering how you got into the financial mess you’ve gotten yourself into. It’s why over half of all businesses fail within the first five years of starting up. The reason we’re telling you this is to highlight just how important it is to first get your finances in order when you first set up shop. It’s figuring out just how much money you need, how much leeway you have, and how much credit you can get your hands on should push come to shove.