Common Small Business Pitfalls (and How to Avoid Them)
If you are starting a new business, it’s easy to get swept up in the thrill and excitement, but it’s also easy to fall into the many traps and pitfalls that come with entrepreneurship.
We have been doing business for as long as history was recorded. In fact, there are records of accountant work that date as far back as 3300 B.C.
Thousands of people start new businesses every day striving for the American dream. Sadly, 30 percent of those will fail in the first two years, and half will fail in the first five. This can largely be attributed to poor planning and a lack of knowledge. Luckily, dear reader, you live in the age of the internet, where you never have to not know anything.
Let’s talk about these business mistakes, and how you can avoid becoming a part of that statistic.
Starting a business takes money. Sometimes, it can be a lot of money. When trying to get your venture off the ground, ensure that you thoroughly analyze your startup costs and know what you need. If a surprise expense such as repairs breaks the bank, your business may be done before it ever gets started.
Growth is vital to a business’ sustained health. But growing too fast or too slow can spell death for a new venture. If growth is too slow, operational costs may exceed your revenue. On the other hand, growing too fast may lead to a demand higher than you can meet.
Few things can kill a startup as swiftly as strife within the company. Whether it is policies that cause valuable employees to leave, or the fallout of a disagreement in upper management that trickles down, discord can crumble a business in short order.
You get what you pay for. When you go as cheap as possible with your business, cheap is what you get. Hiring the cheapest contractors to build your business may result in unsafe hazards and a workplace that isn’t up to code. Paying employees minimum wage or near it may get you a staff of workers won’t have your business’s success as a high priority, because they’re more worried about keeping the lights on.
Don’t let yourself fall victim to these common business mistakes. Meet with an accountant or business consultant that can guide you to the success you deserve.
Claudia Topete, CPA, offers business consulting services to entrepreneurs in Pasadena and the surrounding communities. Give our office a call to get started on the path to success.