Avoid 3 Common Mistakes That New Businesses Make

Image by: felixtsao
By Charles Lewis

People start businesses everyday. Unfortunately, many of them do so before having thought out many of the details. And as we know, the devil is in the details for sure. In fact, bad decisions and mistakes early on can forever wound a business, setting it on a course for disaster down the road.

That’s why you need to do your research and have all of your ducks in a row starting on Day 1. You can prevent making some of those mistakes yourself by noting these three common varieties that small businesses make on a regular basis.

1 – Get It In Writing

When just starting out, business owners tend to have a more gentle view of the world. Owning your own business will put a stop to all of that. The cold hard reality of business is a slap in the face to those accustomed to the niceties of personal day-to-day human interaction. Specifically, the new business owner may not be used to getting everything in writing.

Handshake agreements work great (not really, but OK) in those personal matters, but in the business world, if you don’t have it in writing, you don’t have it. EVERYTHING needs to be put in writing and signed by the participating parties. They may play nice now, but in court it is what is on paper that counts.

2 – Start Good Accounting Habits Early

You do not want to pass that point where all of that stuff in your head becomes confused and suddenly your “system” has failed you. Then you have to go back and begin the arduous process of rebuilding your books and digging through receipts.

You want to begin your business with your bookkeeping software set up, your paperwork methodology on lock-down, and the undeniably satisfying confidence in the full knowledge of your financial situation.

3 – No Website Is Better Than A Bad Website

Don’t throw up that HTML monstrosity just because you need something up right away. Instead, put up a splash page that matches your design and look of your new website while you get things straightened out. But don’t take too long – those who visit a splash page twice will surely not visit a third time.

A bad website sends signals … horrible awful signals to visitors that you don’t have your act together. And guess what? They will never come back. By using a good looking splash page, you create intrigue and open the door for their eventual return.