How to Avoid the 5 Biggest Mistakes Small Business Owners Make
Your entrepreneurial spirit has done an excellent job at motivating you to open your own business. However, your company could run into major problems if you encounter any of the following five biggest mistakes small business owners often make.
Lack of Delegation
A jack-of-all-trades approach is useful for getting started, but it can hamstring your growth. If you spend your time answering customer service emails or troubleshooting your computers, rather than focusing on business strategy and the big picture view, you can’t scale up. Delegate tasks and dedicate your energy to the things that only you can do.
No Investment in Technology
You have limited resources in a small business, so getting the most out of them is critical. Technology helps you streamline many tasks and frees up your time, but 63 percent of small business owners have problems deciding on the right choices. If you aren’t sure what solutions fit your business goals, reach out to an IT consultant to guide your decisions.
Focusing on a Broad Audience
You might look at huge companies like Amazon or Walmart and decide you also need to appeal to a general audience. However, you should avoid spreading yourself too thin. Focus on a niche audience and channel your time, energy and money into being the best company in that particular market segment.
Choosing the Wrong Business Entity
You have several business entity options to choose from when establishing your company, such as LLC or Inc. You may be tempted to set yourself up as a corporation right away, but you have to deal with more complex filing and tax requirements, on top of greater costs. Spend time looking at the pros and cons of each entity before making your decision.
No Work-Life Balance
Your business is an important part of your life, but your entire existence shouldn’t revolve around it. Over 20 percent of small business owners make themselves sick due to overworking, and skip out on vacations, social plans and family time for their company. Track your work hours and ensure that you have a good life balance overall.
Being a small business owner can be very rewarding just as long as you can sidestep these common pitfalls.