# 1. No Business Plan
Knowing what your business will be and how you will sell your products or services usually are not enough to keep it operating. You need to have a business plan written out, including (but not limited to) the following:
your long and short term goals;
the business’ finances for labor, production gear, etc.;
your target marketplaces; and
Having one which outlines every detail will manual your business to the right path.
# 2. Wrong Reasons
Starting a small business simply because you want to be rich can lead to an unfulfilling experience, where you will always be looking for schemes that can bring you lot of money. Think first about your own interests and passions, before you do. Would you believe you can give some thing of value to people at big? Are you driven enough to beat the many inevitable obstacles an entrepreneur will face?
# 3. Inefficient Management
Small business entrepreneurs usually come into their industries with little to no knowledge of handling the multiple areas of a business such as financial administration, employee relations, advertising as well as other essential responsibilities. Educate yourself through short finance and business courses. Additionally, hire managers who have knowledge of the fields where you are missing.
# 4. Lack of Funds
Some entrepreneurs think they will be making profits for their beginning operation cycles, spending most (if not all) of their resources instantly, only to find out later that they will not have access to enough funds to start the succeeding cycle/s. Consider every possible price (production, equipment and overhead etc.) and save sufficient money that can be used for at least a single fiscal year despite bad sales.
# 5. Terrible Location
It is not enough to set up a store at a location with high human traffic or having a very cheap lease. Don’t expect too many customers if the food is expensive there are much cheaper alternatives about, although opening a restaurant close to a school campus can appear like a good idea.
You need to consider your target market and their habits, as well as the direct competition in the region. Don’t be afraid of shelling out for prime location, as the improved rate of customers coming into your store and making a buy will make up for the initial price.
# 6. No Online Presence
In this age of high-speed information, individuals expect to find just about everything on the web with their computers and mobile devices. Not having a website or at least a social media page will make your business virtually invisible to some great majority of the world’s populace.
You can hire professionals to produce a website for you or set up the website yourself. Make makes up about your business on Twitter, Facebook and other leading social media platforms where your target market can usually be seen.
# 7. Uncontrolled Growth
Growth is a good thing unless of course it is left unchecked as well as your generated revenue can’t keep up with the expansion. If your business experiences great success, do not be overeager to spend your profits by immediately buying more equipment or opening up new shops. Stick to the strategies you have set so that you can still grow without bankrupting the business.
# 8. Monetary Neglect
Cash is the lifeblood of any business, and there will be no business once that runs out. Therefore, it is essential that small business entrepreneurs practice strict financial record-keeping so that every dime is duly accounted for. Understanding exactly how much money is going in and out of your business will correctly guide each and every decision you make.
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