Let’s face it, setting up a business is no easy thing; success is never a given, especially not in the highly competitive business arena of today. The core concept of the business must be sound, with a product/service that is in demand; if you have all that and after crunching the numbers, the next step would be to write a business plan.
Here are a few big mistakes to avoid at all costs when launching a small business.
Insufficient funds – Don’t take the risk of starting the business on a shoestring budget; all it takes is one late invoice payment and you could go under. Calculate the amount you need to launch the venture, plus have enough to keep the business afloat for the first 6 months; if you have equity in your home, you can take out a second mortgage and release the money.
No firm plan – The process of setting up a business requires a great deal of planning and preparation; this starts with your business plan, which should cover everything from funding to bumper stickers and everything in between. While a business plan can be shown to a potential investor, that is not its main purpose; By compiling a detailed plan that covers every aspect of the business, you are well-versed as to the strategies and goals you have set. A comprehensive business plan would be 35-50 pages in length, which reflects the amount of research that went into creating the document.
No marketing budget – Regardless of your sector, people in the community need to know about your existence; some entrepreneurs mistakenly think they can get by without spending money on marketing; set aside a monthly budget for SEO and other digital marketing strategies, which will generate a strong online presence. You can be sure that your rivals are enlisting SEO agencies to optimise their Google ranking and you don’t want to be left behind.
Poor management – You might be a great technician but if you are not a manager, things could go wrong; if there are a number of employees, they need to be managed and have all the resources that the Australian government stipulates. Health & safety is a major headache for the small business; most outsource this to a local HR agency, which guarantees compliance. Click here for more mistakes to avoid with a business startup.
Poor customer service – This is one mistake you can’t afford to make; successful companies are customer-focused and whether or not you make a profit, keeping the customer happy is the goal. Look at things from the customer’s perspective and if there is any way that you can improve things, that should be implemented.
Don’t forget to register the business with the Australian government and take out specific insurance policies to protect the venture. The more planning you do, the better your chances of success and we hope the above information helps.