While starting a business is easier than ever, the vast majority still end up failing after a few years. As a matter of fact, it’s estimated that about 60% of all UK businesses end up going bust after three years. This is often because people were ill-informed about what it actually takes to run a business. Many people start with assumptions or try to emulate someone else’s business model.
What they don’t know is that it goes well beyond a model. Some might have advantages that allow them to get better deals from their suppliers; others advertise better, while some people are able to run a leaner operation and reduce costs. This is why you need to give your business a close look and see if you are committing any mistakes that could later spell its demise. Here are some common mistakes made by new business owners.
Being Too Loyal
This may sound strange at first, but some businesses are just too loyal to the people they work with. Yes, it’s nice to have a good relationship with a supplier, and it can have its advantages, but you also have to take advantage of the market. Once you have been given an initial deal, it’s tough to go much farther than that, unless you bring in competition. This is why you should continuously try to negotiate your deals with suppliers, especially when it comes to utilities.
Energy companies have a tendency to treat new clients better and won’t offer much later when it comes to deals, which is why you should not only always try to renegotiate your current plan, but consider making a switch. Some even recommend that you switch suppliers every three years. Doing so while comparing offers will allow you to always get great introductory fees. If you’re looking for options, we suggest you browse through these guides. You’ll be able to find the best deals on the market and broaden your options.
Not Having a Plan
This is probably the most crucial mistake most starting business owners make. You need to have a plan when getting started. Starting without plans is like going on a trip to a strange land without a map. Notice how we said plans because you shouldn’t have only one business plan; you should also have a financial plan and marketing plan. These will allow you to look at things like how much working capital and financing you think you will need, and start exploring and evaluating marketing methods.
Being Scared of Technology
This can take many forms. Did you know that over 1 in every 10 businesses only accepts cash? This is only one aspect, but when you’re averse to technology, you are bound to make some losses. Only taking cash may be convenient for a vendor, but it’s enough for a client to never return. You might also lose to someone who offers card payments.
Others will neglect things like online reviews and local visibility on search engines, or you have people who are still stuck on using outdated timekeeping and management techniques in their organization, thinking that other options would be too complicated.
Technology’s main goal is to make things easier, and if you’re afraid of technology because you can’t understand it, speak with someone who does understand. Get multiple opinions and do your research. You’ll soon find out which technologies could not only help, but be essential for your business, and why.
Starting a business is a challenge. However, if you manage to avoid some common mistakes, you might become one of the few who are still standing and striving after years.
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