5 Common mistakes new business owners make
Take massive action for massive results. As a new business owner, you should be aware of common mistakes startups make and how to avoid them.
You've finally launched your business and this is an exciting time for you! Know the mistakes new business owners tend to make regarding their business operation.
Are you a new business owner looking for the best way to position your business for success? Or perhaps you’ve already been in business for a few years and haven’t quite figured things out. This is a journey, not a destination and challenges are inevitable; however, knowing the basics can provide you with the jump start you need.
1. Wrong business Entity Structure
One of the main mistakes people make when starting their business is starting as a sole proprietor with the intention of changing the entity structure when their business grows. The issue with a sole proprietorship is that it offers no protection for the you as the business owner, whereas a Limited Liability Company (LLC) prevents the owner from being personally sued. Another misconception people have is saying, “well I don’t have anything for anyone to sue me for.” This notion is also incorrect as someone can sue you for any assets you own as well as future earnings.
To learn more about the different entity structures, visit the IRS website.
2. Wait to too long to establish Brand
Have you told yourself, “I’ll wait until I make more money before getting a professional logo or website“? If so, this is one of the biggest mistakes you can make. When you present your business to anyone, regardless if you’ve been in business one day or 10 years, your digital and physical presence speaks to your level of professionalism.
Often times, new business owners make the mistake of missing the important details in the beginning and struggle with attracting their “ideal clientele”. Eventually you will need to do this, so start off with presenting your business in the most professional manner possible.
3. Rely too heavily on Social Media
In today’s world, it’s so important to have a digital presence whether it’s doing reels on Instagram or posting engaging posts on your timeline, however, what we found is that many people receive 80% of their business through referrals and networking. We’re not saying not to focus on social media, however, your marketing should not be 100% reliant on social media. Your marketing should have a combination of digital marketing and offline marketing strategy, such as networking, tradeshows, and other places where your target market will be.
4. Fail to Plan/No business Direction
As the saying goes, if you fail to plan you plan to fail. As eager as you may be to get the momentum rolling, it is essential to have a business plan in place. One of the mistakes new business owners make is “winging”. This is the worst route, who told you to do this?
Write a business plan that consists of realistic projections. Revisit it in 3 to 6 months as things will change. As part of your planning process, have a monthly marketing calendar that outlines weekly marketing initiatives to help you stay on track.
5. Disorganized due to not investing in operating tools
Being disorganized is a highway to business failure. The need to be a jack of all trades and not investing in the tools and resources to run your business are mistakes new business owners and even some seasoned business owners make. The main issue with this is that it complicates the client experience.
When one person tries to do it all, you fall short in some area. Don’t be afraid to outsource certain parts of your business where there is a need or even contracting labor if you do not have the capacity for full-time employees. Every business owner should also have a Customer Relationship Management (CRM) system. These systems help you stay organized and can even automate communication to your clients so there’s never a delay in timely communication. Sales Force and 17 Hats (for photographers and artist) are two that we can personally recommend and have had exceptional experience with.
About The Author
Jessica Smith Is the Founder and Lead Designer at Prostige Marketing Based in Wisconsin.
Jessica Smith is the Founder and Lead Designer of Prostige Marketing. I worked as a professional photographer for over 8 years and as my business began to flourish, I recognized an overwhelming need for both myself and business owners alike to have a customized website that operates as a marketing tool that contributes to my bottom line.
Need a website that generates sales for your business? Prostige Marketing would love to help! If you know you’d like us to help you generate leads for your business, skip the video and click below to get started.