It is very difficult to build a lucrative business in this day and age. An individual who is just starting out on a venture should be extra prudent with his time, energy, and money. The following are dangerous and expensive pitfalls in which many entrepreneurs find themselves:
Failure to Plan
This is one of the biggest roadblocks to success. Not having a business plan or budget is like leaving on a family vacation with no idea of where you are going or how you are going to get there. If you need assistance, there are many professionals such as attorneys, accountants, and consultants who will be only too happy to help you with this step. Yes, it may be costly, but this is one step you cannot afford to miss.
Constantly monitoring your employees and attempting to do their work for them will only cause problems. After initial training, take a step back and allow your staff to do their jobs without hovering or interfering.
Incurring Unnecessary Expenses
Keeping your company in the black is a full-time job. Expenses such as labor, inventories, and other fees should be closely monitored to ensure that they are absolutely necessary. For example, if you own a restaurant, do not hire more staff than you need. Do not stock up on food and supplies that are not necessary. Take bids on all large purchases before making a final decision.
Failure to Train Properly
Many businesses fail to train their new hires properly before putting them to work. This can give your business a very negative perception. Always go through the steps to familiarize and train employees before letting them embark on their own. Be sure they are familiar with the history of the company, the products offered, and who all of the key managers are.
Going it Alone
You may have the attitude that you can do this on your own, but you should really be reaching out to other professionals who have followed the same path you are on now. Join professional organizations and learn from the masters. Find a mentor to assist you in becoming the best you can be. Ask for business advice and suggestions from your accountant, managers, and even your line staff. Keep an open mind and be prepared for learning experiences every day.
Failure to Communicate Effectively
You owe it to both your employees and customers to communicate with them on an ongoing basis. Keeping everyone in the know on issues such as specials, shortages, changes in policy, and delivery dates is vital to the operation. This is what can make or break your company. Communication is advertising in its most basic form, and can aid in increasing your sales and help decrease turnover.
Starting a new venture is always going to be a challenge. Keeping it growing and solvent is an even bigger one. Avoiding the preceding dangers at your company and taking expert business advice will help you become the successful and lucrative person who have always aspired to be.