Opening a small business takes passion, dedication, and plenty of patience. While waking up to thousands of sales is the goal, it usually doesn’t work that way at the beginning. You need a sound strategy and an open mind. But even the most prepared individual can make a mistake. Continue on to learn the mistakes most small business owners when they’re first starting out.
Spending Too Much
Theoretically, spending money to build your business isn’t a bad idea. But there’s a difference between investing enough to get the ball rolling and spending every cent you have. If you don’t have enough money left over, paying for your business’s expenses is impossible.
Saving money is key, especially since you’ve only taken your first steps into the world of business. Create a financial plan prior to opening your shop, and stick to it.
Forgoing Insurance Coverage
Another mistake many new business owners make is not having insurance coverage. You may think that you won’t need insurance because you’re just getting started. However, you should have coverage prior to opening day.
The most common types of insurance for businesses include:
- General liability
- Management liability
- Cyber liability
- Business insurance
Having insurance protects you from any potential problem or mishap that occurs on the business’s premises, even if you run an online business. There are other types of insurances you need to have at some point, but usually not until your business is more established.
Going Without a Lawyer
No matter what type of business you’re opening, you should have legal counsel. Having a lawyer on retainer can help you in case something goes awry. For instance, a corporate lawyer will guide you and help you understand your duties as a business owner. Research corporate lawyers in your area to schedule consultations as needed.
Another mistake new business owners make is not being patient. Being enthusiastic and wanting to succeed is normal. But if your enthusiasm pushes you to make rash financial decisions, you might not like the end result. Growing a business takes time, and as much as you want to be successful, you need to follow your business plan and take things slow.
Whether you’re freeing yourself from the corporate world or starting an online side hustle, you need a plan. Create an executive summary prior to getting started, and know that even the most successful businesses started exactly where you are now.
Anita is a freelance writer from Denver, CO. She studied at Colorado State University and now enjoys writing about health, business, and family. A mother of two wonderful children, she loves traveling with her family whenever she isn’t writing. She recommends visiting a site like www.carterwestlaw.com to find a corporate lawyer to help you with your business. You can find her on Twitter @anitaginsburg.