First off, if you’re in the process of launching your own small business, you should know that there are certain office tasks that you can delegate to an external team, which can greatly help you save on launching costs. Such services like front office assistance, scheduling, order entry, and dispatch can be outsourced, which means two things for new business owners: temporary services that help cut costs, and having a professional team you can rely on to help you manage office tasks while you take care of more pressing matters.
To minimize risk of failure, here are a few common pitfalls every first-time business owner should know about (and subsequently avoid):
1. Lack of financial preparedness and knowledge
For a lot of startups, lack of funding is considered a primary concern but once they have secured funds from investors, they learn that the problem isn’t a lack of funds; it’s poor financial management. That said, it would be prudent on your part to learn as much as you can about the financial side of running a business; from creating and sticking to budgets to building credit, managing cash flow, understanding gross and net incomes, and so on.
There are different financial aspects to learn about a business and each one needs careful study and scrutiny. It won’t do your business good to simply delegate such financial tasks to an accountant or a numbers guy; you, as the business owner, should know about the ins and outs of business finance as well.
2. Not delegating tasks
As a new business owner, it’s understandable to want to do everything by yourself because you feel it’s the only way to ensure nothing will go wrong with your launch. This is actually a counterintuitive approach because having too many things on your plate will eventually result in one or two things falling off. You’re bound to make a mistake if you insist on multi-tasking. Delegating tasks is the better and wiser approach because the quality of work won’t be compromised, which further reduces the risk of a failed launch.
3. Poor marketing
Many first-time business owners overlook marketing expenses, thinking that this will only take a small chunk off the budget, which means it need not be given a big budget since the business is still at its launch phase. But the reason you don’t allocate a big budget for marketing is the very reason why you should: the audience doesn’t know you yet but a strong marketing campaign can easily remedy that if you do it right.