Mistakes to Avoid When Starting Your Own Business

A common characteristic of entrepreneurs is enthusiasm and passion for their business

ventures. Many times they jump right into business without a solid plan or idea. There are many mistakes to avoid when starting your own business. Follow the tips below to set your business up for continual success.

Not Having a Business Plan

A key to operating a thriving business is to have a business plan in place. Look at where you

currently are and decide where you want to be. Next, make a plan to get there. Having a

business plan will save you lots of time and money wandering aimlessly through different

attempts.

All Planning and No Action

You should not be spending more time making business plans than actually working on your

business. Avoid getting trapped in paralysis by analysis. While it is good to have a plan, it is not ideal to continually plan and never take action. Set up your plan and take action immediately,you can always adjust your plan as your business evolves.

You Business Plan Should Include:

• A Mission Statement

• Description of Your Company

• Description of Your Products & Services

• Market Analysis

• Marketing Plan

• A Cash Flow Statement

• Revenue Projections

Also, include a timeline of when you want to reach milestones, and set up a solid schedule that will reasonably allow you to achieve these milestones.

Not Having an Idea About Your Investments

Every business requires some type of investment. Having an idea of how much you’ll need to

invest upfront and over time will help you to achieve financial success within your business.

Make an itemized list of the different costs you’ll have upfront. Determine how you will gather these investments. Will you be using your personal money or will you need to find investors? You should also have a goal and plan for when you will pay back investors.

Not Keeping a Detailed Record of Financial Transactions

In order to maintain a successful business, you need to keep a detailed record of income and

expenses. No expense amount is too little to track. Keeping good financial records will allow

you maintain a strong financial standing.

Importance of Keeping Detailed Financial Records:

- It will help you during tax time.

- You will be able to find discrepancies in accounting.

- You’ll have an accurate portrayal of your financial standing.

- You’ll have quick access to finance numbers for investors/ lenders.

Look into your business’s budget and determine whether your can afford to hire a professional accountant. It will save you hours of work and you’ll have peace of mind that your business finances are well protected.

Not Setting Any Goals

In order to keep focus and motivation, you should set goals for your business. Set up S.M.A.R.T goals that are Specific, Measurable, Achievable, Reasonable and Time Bound. It is wise to set short term and long term goals. You may have a vision of what you want your business to look like, but it will take time to take get there. Break up your big goal into small actionable steps. Remember that setting up goals does not mean you are bound to them. Time and experience may cause you to reevaluate your business goals. If you feel your business is heading in a different direction, be adaptable and change your goals accordingly.

There are many facets to setting up and maintaining a successful business.

Call Carolina Money Minders today to discuss how we can help guide you toward a thriving business.