Thousands of new small businesses are developed every single year in australia. This country inspires an entrepreneurial spirit, as the Government greatly wants small businesses to succeed. They are the backbone of this country and help our economy and also create more jobs for Australians. However, with so many businesses started every year, there are also many that fail. Facing hardships and difficult times is inevitable for any entrepreneur, it is just a fact. If you ask any successful business owner, they will tell you they also faced a lot of failures in their career, but those failures were learning experiences and led them to success today.
Many of the biggest start-up mistakes are avoidable if you plan ahead of time. Lets take a look at five of the biggest ones and what you can do about them.
1. Trying To Do Everything Yourself
New entrepreneurs, who are very passionate about their business, simply want to do it all themselves. This is understandable as they know their business better than anyone and dont want anyone else tampering with their vision. However, strong leaders can also delegate and realize when someone else might do a better job than them at certain tasks. If you try to do everything you will get overwhelmed and your business may be a risk.
2. No Plan In Place
Many entrepreneurs are so excited by their business idea that they just want to dive in and get it started. But you MUST plan ahead of time. Create a solid business plan, outlining your company before you even get started. This is an integral piece to any business.
3. Putting All Your Personal Finances Into It
While it is going to be necessary to at least put some of your own money into your company, a big mistake some entrepreneurs make is putting everything they have into it (such as all of their personal assets as well). This is very dangerous, especially if something goes wrong. Look into funding and financing from banks, the Government, friends and family, and private investors to help you out. You shouldnt have to fund it by yourself!
4. Not Following Your Budget
Before you even start your business year you must have a budget set in place. This will help you determine what you need to buy and what you dont have to spend your money on. The moment you veer away from your budget is the moment your business may start to be in a rough patch. Once a budget is set, simply follow it!
5. Hire People You Trust
Especially in the beginning years of a company, you need to hire people who are positive and also share your common vision for the business. Big egos and various viewpoints will definitely destroy a business from the inside. Be wise about your hiring process and always make sure you are in command. Dont let anyone take advantage of you!