Starting a small business? 4 tips to help new entrepreneurs avoid the mistakes others make…
Starting out as an entrepreneur can be daunting. A small business is an investment in time and effort and always comes with a degree of risk.
Uncertainty, doubts and the potential for errors can all undermine confidence.
Worse still, some entrepreneurs fail to follow tips from others and shoulder their burdens without seeking outside expertise and support.
Following a few tips can help entrepreneurs avoid the mistakes that others make when starting out.
4 tips for entrepreneurs
Below are four of the most important tips for entrepreneurs to bear in mind as you start your new small business venture.
1. Pick the right inner circle
Family and friends can be supportive, encouraging, and even offer objective advice from time to time.
However, the truth is that they may not make the best business advisors.
You need a person or group of people who are able to offer an objective perspective and consistently ask challenging questions of you and your business.
Finding and working alongside a professional business advisor is so important because you’ll then receive the critical feedback you’ll need to be successful.
2. Know your goals and be realistic
The second tip for entrepreneurs involves a handy exercise: write out what you want your business to look like in a year’s time.
Be specific about particular achievements and put numbers on them.
For instance, don’t just write “make a profit”; state how much profit you intend to make.
As well as serving as a guiding light for you, this document will help you articulate your goals to a business advisor.
Don’t worry if they pour some cold water on the more outlandish or over-confident expectations, as it will be for your own good. You should only be targeting what’s realistic and achievable.
This will help you set the bar and provide something practical to work towards.
3. Set aside funds for a rainy day
No matter how great an entrepreneur you are, don’t neglect this tip.
Something will occur that causes delays, unexpected costs or some other problem in your business.
Are you prepared for it?
Consider your business plan and the resources available to you. This will help you prepare adequately for unforeseen circumstances and put aside the right amount of funds according to the scope of the risk.
A business advisor will be able to help you determine this; they’ll also help you develop plans and make suitable contingencies for the major eventualities.
4. Don’t try do everything yourself!
In order to cut costs, it might be tempting to try and manage all the systems, processes, and tasks yourself at first.
This is one of the most common mistakes made by entrepreneurs.
The problem is that you’re unlikely to be an expert in many of these areas; you need to prevent yourself from falling into the trap of juggling too many things and doing nothing particularly well!
There’s a reason why we have plumbers and mechanics, after all.
Accounting firms and business advisors can offer the expertise you need to manage marketing, finance, compliance, business streamlining, and so on; and they’ll be able to advise what is manageable with the resources at your disposal.
Just starting out as an entrepreneur?
We’ve just explored a few of the areas you need to consider and covered just a few tips for entrepreneurs.
There’s much more to take into account when starting a business, of course.
If you’re looking for a reliable business advisor in the Perth area or need to discuss your business plans, contact us at Ascent Accountants.