Being a small business owner isn’t easy. In fact, it’s one of the most difficult things you can do. If you want to survive the first year, you are going to have to be smart about how your company operates. Certain mistakes can certainly lead to your business’s demise. Below is a list of six mistakes that can quickly bring down your business that you must be sure to avoid.
Not Having Adequate Business Insurance
The amount of things that can go wrong for a business is massive. Having insurance helps hedge some of this risk. Make sure you have business insurance to cover all possible scenarios. Without it, your company could be taken out overnight due to a lawsuit, a flood or something else.
Not Understanding the Market
If you don’t have a strong grasp on the needs and wants of the market that actually exists, you probably shouldn’t go into business in the first place. If there is no current demand for your products or services, it is unlikely you will be able to create that demand overnight. Do your research.
Poorly Managing Your Staff
A restaurant, for example, could serve excellent food. However, if the staff is lazy and rude to your customers, you will never get those customers back. Their online reviews will also be devastating. Always make sure your staff is well trained and well managed.
Wading into a PR Disaster
As a small business, you often don’t have the budget to spend a lot of marketing to forge the public’s perception of your company. If social media users on Twitter, Facebook and elsewhere develop a grudge, they can quickly ruin your brand. Try to avoid social media PR problems if all possible. Hiring professionals that have a public relations master’s degree can help protect your company’s image.
Not Protecting Your Data
If you run a business online or offline, protecting your data is paramount. Data is a big part of forming a competitive advantage as well as performing basic business tasks. If your data is wiped out by a thunderstorm, for example, you won’t be able to perform basic accounting let alone strategic planning.
Taking on Too Much Debt
Business loans shouldn’t be used kids who have yet to even hold a job use student loans. Instead, you should be certain you will have the ability to pay down that debt with your profits. Otherwise, bankruptcy is certain.
Opening a small business is a huge risk. However, if you are smart about it and plan for the things that could go wrong, achieving success as an entrepreneur is very possible.