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How to avoid the most common business errors

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Most business owners will readily admit that the first year of trading for a company is often the hardest. However, although a new company will face tough challenges and make mistakes, there are some which can be avoided.

Start out with a business mentor

Once you have decided to start a business, don’t feel that you should be able to deal with all the challenges and tasks which face you in the first 12 months. A business mentor will be able to help you to avoid all the most common pitfalls made by business owners. The experience of a mentor will help you to learn as you develop your company, gaining the knowledge and confidence to build a business. Consider outsourcing the finance of the firm to a professional, so that you can be sure that the financial aspects are being dealt with, while you concentrate on building the business. You’d be surprised how much finances impact on other areas, and a little advice can help avoid pitfalls in other areas and create more profit. Don’t be afraid to rely on others in areas which you don’t have the necessary expertise.

Build a team

Although you may want to build the company by yourself, most successful businesses have a solid team behind them, with a variety of people experienced in different areas. The combined knowledge and talents of all the team will ensure that the business has the very best start. Trying to run a new company by yourself is a common mistake made by many new owners.

Produce a business plan

Although a business plan is often viewed as being a waste of time, it has a number of functions for a business. If you are seeking investment from an outside source, you will need a business plan to show that the company has potential for success and demonstrating cash flow. The plan should outline the objectives for the first year, followed by a five-year plan and then for the longer term. You can measure the success of the company with a careful business plan.

Marketing

Don’t cut corners when it comes to marketing. You could have the best product in the area but if customers have never heard of the company, you won’t build sales. It isn’t necessary to spend a fortune on marketing, as there are methods which will maintain affordable costs. Although outsourcing requires an initial investment, the costs will soon be recouped for some services.

To discuss your options for a new company, and how to avoid the most common mistakes in business, call us today to set up a meeting.