Starting a new business is an exciting endeavour. In the beginning, there is endless potential. In five years’ time, you might look back on the day you started and think about all the success that came from that.
The problem is, so many businesses fail before they reach success. There are various reasons for this, with some of the most common being little preparation, poor financial management, and not enough marketing. To help make sure your small business doesn’t end up a failed experiment, here are the five dos and five don’ts of starting a small business.
Do: Commit to Plenty of Research
There is no way around it – you must commit to plenty of research if you want to own a successful small business. When there are so many skilled, experienced entrepreneurs out there, you don’t stand a chance at success if you don’t dive into market research and business knowledge. Start with researching what it’s like to run a business, and then focus your research on your particular market niche. You must identify your goals, audience, and what competition is already out there.
Do: Seek Outside Help
While you might go it alone in the very early days, you shouldn’t avoid seeking outside help once you have established yourself as a small business. After all, your time should be focused on business ideas and growth. Hiring professionals to help with your accounts or your web design won’t only make your life easier, but it’ll also ensure your business has more legitimacy. Use chartered accountants London for specialist knowledge that will ensure your business finances are taken care of.
Do: Be Specific About Goals
Where exactly do you want your business to be in a year or even ten years? Setting goals is a must for any new business owner, but you should also be specific about them. Doing so helps you focus your efforts. You could specify how much revenue you want to make that year, the number of products you will sell, or when you plan on hiring your first employee. As long as your goals are centred around growth, they will help you build a more successful small business.
Do: Set Yourself a Schedule
Shifting from working for someone else to working for yourself can be tricky. That is especially true when it comes to managing your time. Instead of working throughout the day when you feel like it, you should set yourself a work schedule for the business and stick to it. That way, you are more likely to focus on your tasks when needed and are less likely to fall behind.
Do: Separate Work from Personal Life
It’s not always easy to separate work from your personal life, especially when running your own business, but it is a must. While you might be working from home at first, you should do your best to create a designated space for working so that it doesn’t interfere with your personal time. Stopping this overlap will reduce stress, help you focus, and set good habits early on.
Don’t: Hire Too Quickly
Many small businesses have a dedicated small team of people helping to run the show. There is such a thing as hiring too early, though. While you shouldn’t avoid hiring if you have the finances to afford it and require an extra pair of hands, make sure you don’t hire too quickly. Only consider bringing employees on board when you are making a consistent profit and have the room to accommodate an extra person working for you. If you are especially busy at a certain time of year, you could hire temporary workers until you need someone on a more consistent basis.
Don’t: Neglect Technology
These days, it’s near impossible to get a business up and running without the use of technology. It’s used to sell goods, market products, contact customers, and much, much more. It’s not enough to get on board with the basics, though – be open to newer technologies. With so many other successful businesses ahead of the game with tech, you can’t really afford to not use it. You should jump on tech trends like AI, better cybersecurity, and content automation to boost your business.
Don’t: Target a Wide Audience
A common mistake made by new business owners is trying to appeal to many instead of a few. You waste time and resources by marketing to everyone, so instead, identify your target audience and focus on them. By doing this, your marketing strategies will produce better results, and you won’t overspend by marketing to the wrong people. Some identifying factors to figure out about your audience include occupation types, age, sex, and types of relationships they have.
Don’t: Ignore Your Competition
No matter how unique your small business idea is, the chances are there are other businesses out there with similar business ideas that are targeting your audience. It doesn’t benefit you to ignore these businesses. In fact, keeping an eye on them will help you. You can gain ideas, understand how they communicate with their customers, and figure out how to make yourself a better option for customers by knowing your competition.
Don’t: Set the Wrong Price
Another business mistake to avoid, especially in the early days, is setting the wrong price on your products or services. Leaning too far, either way will harm your business’s success. By setting a low price, you miss out on profits and set yourself up as a cheaper business. By setting it too high, you will scare off potential customers.
Finding the right balance can be tricky, so do plenty of research before setting yours. You want to be competitive but also not sell your products too cheap. If your focus is on quality, you can usually afford to set your prices a little higher than your competition.
Starting a successful small business doesn’t happen without hard work, lots of research, and learning from mistakes. Use these dos and don’ts, and set yourself up for better success early on.