The realm of business is shaky especially for a budding entrepreneur. Fortunately, if you know what to look for, you can avoid or at the least mitigate any disaster you come across.
- Cash splurge
After a particularly lucrative month you might consider investing some of your earnings into the business. It’s an understandable reaction; just don’t let your successes go to your head. Opportunities for growth can be incredibly alluring but an abrupt spending spree can cripple you badly. Understand that a highly profitable month does not guarantee prosperity in the future. You might invest yourself into a service only to discover in the weeks that follow that it is an expense that delivers poor results leaving your wallet dangerously light.
- Ignoring the profit margin
When it comes to business growth, most entrepreneurs imagine more money. What they ignore (or try to ignore) are the added costs that come with expansion. For example, a boom of new customers could mean you have to pay your suppliers more to meet the new demand. You need to keep an eye on profits. Learning your losing money is a business cancer that can be rectified if you aim for a solution early, don’t just hope things will work themselves out. There are a number of reasons you could lose money and your first step should be to determine just how much everything costs and whether there are any expenses that can be waived.
- Keeping things in your head
As a small start-up you might possess the means to keep many important details safely stored away inside your head. If this is you, this is a habit you need to stop ASAP. Sooner or later your business will grow and you’ll be flooded with information overload. A nifty method to avoid this includes crafting a business plan; no enterprise is excused from compiling one. Not only will this document keep you on track to achieving your goals but it will also be a written record of important info pertaining to your business, finances, strategy and so on. Having a plan will also assist credibility particularly with investors further down the track.
- Not going digital
We live in an age where having a website is absolutely VITAL. In 2013 only 16% of Australian small businesses had an online presence and according to studies by Deloitte it has been proven that digitally engaged SME’s grow and earn more. These offline groups rely on old tactics to advertise and it is these companies that die off because the majority of the market never hears of them. A digitally engaged business can theoretically communicate with millions of customers with a swipe of a finger.
- No SEO optimisation
If you enlist a web development agency to craft you a website, make sure it is search engine optimised (SEO). You can have the prettiest most perfect site in the world but if no one can find it on Google then that’s money lost from your pocket. You NEED a website so conversely you also need SEO so that you can garner traffic from search engines.