Estimated reading time: 2 mins
When it comes to running a business there are many people who think they are more than capable of starting a business and becoming a success overnight. And this confidence is admirable, but there are going to be plenty of hiccups along the way. If the original plans aren’t laid down effectively, and the foundations for your business are laid carefully, then you will find that the first year of business may be more difficult than you had hoped. Here are five of the top things that business owners do in their first year, to cause themselves issues. And things you can do to prevent this happening to you.
Doing it all
Of course in the first year of business, most companies will be working at a loss, and if you are investing heavily in the business it can be tempting to avoid getting other people to do work for you, on the basis that you don’t want to end up with money being spent on things you feel you could do yourself. But spending money on things such as an Email marketing agency, and getting the experts in to provide you with services that can propel your business into a success, it’s always a good investment. Just make sure you’ve done your research first and that you are able to get the right help from the right people.
Not keeping track of your accounts is a recipe for disaster, and accountants and bookkeepers are there to help you along the way. Making sure that you at the very least have a record of everything that comes in and goes out of your business, can help you have to avoid having to go through receipts and over tricky spreadsheets at the end of the year. You are expected to send your tax returns regularly, and not having any information is going to create problems for you.
Going too fast
We all want to be successful, and quite often we want to try and get ahead of the game by speeding along at a pace that is not sustainable. Sometimes this works, but mostly running before you can walk is going to land you in hot water. Taking it steady and making sure that everybody knows exactly what they are doing, and that the research is laid down before you rush ahead, will ensure that your business has some longevity and you don’t end up in difficulties. Of course, if you are prepared, know exactly what you were doing, and have the correct support, then there’s no reason why your business can’t grow at a great speed, but always ensure that the groundwork is done, and you aren’t falling short in any areas before taking this task on.
At the end of your first year, you will be able to assess exactly what the pros and cons of your way of working have been. You will find many different things to learn from, and you will have made connections along the way that can help you progress and make a difference to your business in its second year. But taking heed of these tips can help you avoid any disasters.