Everyone has made a mistake? Who hasn’t? These 10 mistakes below are so common that every businessman has made at least one of them. If you haven’t yet, better avoid it.
- All the BIG companies once started small. You might be small today. You can grow big when planned right! Ask yourself, where do you see your business in the next 1, 2….5 years? Only a proper plan will help you to make it a reality. Or else, you just have to be lucky enough for things to happen automatically for you. Without a business plan to guide your small business growth, you’ll struggle to make decisions, get loans, or bring new customers.
Solution: Plan and write down the results you wish to see in your business over a period of time. Find out the ways you can achieve it with proper research.
2. Many start businesses based on suggestions made by friends and family who say it’s a “good idea.” But friends and family aren’t enough to take your business forward, you need to know your customers well.
Solution: Conduct thorough market research on who your customers are, what do they want, how much they’re ready to pay, etc.
3. Is your business a sole proprietorship or C corporation? Choose the type of business well. Avoid any kind of legal risks!
Solution: Before starting your business, talk through your plans with a lawyer and accountant.
4. Your customers are online. They search for the product they need on Google. Make sure you’re seen.
Solution: Start a Facebook page, mark your business address on Google maps, have a website, get on to Instagram. All these will make you visible online.
5. Never borrow more money than you can repay. Don’t borrow too less than needed. Weigh all the risks, see how much you need to grow your business and go for it.
Solution: Start analysing your profit and losses on a daily basis. Compare daily, weekly, monthly growth. Your accounting App should be able to give you this report. If you don’t have one, better start using it to enter your business transactions. Try Vyapar App. This helps know which of your items/services is bringing your profit/loss. You can invest right.
6. Never sell your items/services at unreasonable rates. Charging too much will chase your customers away while charging too less result in slow growth or loss.
Solution: Check the market rates and calculate your desired profit margins. Review what competing businesses in your area charge. Charge accordingly!
7. Investing more money doesn’t guarantee more profit.
Solution: Think outside the box. Make the most of what you have. If you’re already running under loss, you may end up losing loan amount too. Be wise.
8. You know that your products are the best, but customers don’t! Want them to know? Marketing is the way to go.
Solution: Marketing is an investment, not an expense. Find out the ways to reach your customers. You can distribute pamphlets through daily newspaper, Advertise on hoardings to reach your local customers. Talk to other shops and stick print outs about what you offer, etc. Try it, it’s worth it!
9. When you make a new sale, purchase, cash settlement make sure you records it for future reference. Not recording will cause huge problems if something goes wrong or a misunderstanding arises.
Solution: Always maintain account of books for your business. Use business accounting Apps such as Vyapar to save all the business transactions right on your phone.
10. Accounting isn’t most businessman’s interest. As your business grows, you might be tempted to hand it over to a bookkeeper and stop paying attention. This puts you at risk of cash flow problems.
Solution: Even if your bookkeeper handles day-to-day accounting, you must have access to what’s happening in your business. With Apps like Vyapar App, you can instantly know today’s profit/loss, how much money you should receive, who hasn’t paid till date, what’s remaining in your inventory etc.
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