Mistakes That Could Get Your Business Into Serious Trouble

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It’s not unusual for business owners both old and new to make mistakes. Mistakes can be a good thing. They often hold many valuable lessons that help us to grow and move forward. However, depending on the severity of your mistake, you could actually end up in serious trouble. At worst you could end up with a serious, costly court case. At best, your reputation may suffer. Let’s take a look at the mistakes that could get your business into serious trouble:

  • Unrealistic Financial Projections

Unrealistic financial projections are one of the most common business mistakes out there and one of the reasons business owners end up in such a mess. Making sure you take these projections seriously when creating a business plan or speaking to investors is key. You’ll need to explain your projections carefully, and remember that it’s not wise to be overly optimistic. Any investors will want to see that you have your feet on the ground and a realistic idea of where your business is going. 

  • Bad Research

Making sure you research as thoroughly as possible will not only help you to come up with ideas to help your business grow: it’ll stop you from getting into trouble. What if there’s a business out there with the same name as you, or a similar name? It might not seem like a big deal, but you could get into some legal trouble if you don’t rectify this. Making sure you have covered all of your bases with your research will ensure you avoid any issues later on down the line. 

  • Not Setting The Right Goals

Setting SMART goals is an essential part of business. Setting vague goals that you don’t feel like you have to stick to could damage your results. SMART goals will keep you on track and ensure you are moving in the right direction. The right goals will help you to stay on track both in the long term and during your day to day operations. 

  • Undervaluing Your Products And Services 

Many business owners actually undervalue their products and services when they first start out. Usually, this is down to fear of failure. They worry that people won’t choose to work with them over the competitors, so make their prices as cheap as possible. However, this could damage you both in the short and long term. Not only will it make it hard for you to make the money you need to grow, it could be harmful if you decide you need to charge much more in the future. You can’t be frightened to charge what you’re worth. 

  • Avoiding New Technology

Technology is a way to access new opportunities and save time. You will often find that work gets done more efficiently, and even that you save money. Technology can be intimidating and take time to learn, but it’s often worth it when you see the results in the long run. We are relying on technology more now than ever, so it’s crucial to get to grips with it. This includes software that can help you to keep track of things like customers and contracts, such as matter management software. You can automate a lot of your process with the right software. Don’t wait too long to implement it. 

  • Overspending

Most people believe that starting a new business requires a large investment, but this isn’t always the case. You do need to allocate a portion of your budget to things like marketing, equipment, and software, but you need to be smart about what you actually need now and what can wait until a later date. Sticking to a budget is essential. You don’t need a company car and state of the art desk chairs right at the beginning!

  • Failure To Create A Business Plan

There have been exceptions to this rule, but if you want the best chance of success, you should create a business plan. Outlining your business in a plan will give you a better idea of where you’re headed, and could also help you to identify some potential pitfalls before you have to deal with them in the moment. It’s a time consuming act, but it can save you so much time, money, and hassle later on. 

  • Trying To Do Everything Alone

Unfortunately, you can’t do everything alone. There are so many different tasks that must be done to effectively run a small business, one person will not be able to do every single one to the standard required. Your time and attention as a business owner is scattered as it is, so you need to figure out which tasks require your personal touch, and which can be outsourced or automated. Getting to grips with the idea of delegating, hiring, and outsourcing will ensure you make the most of experts available to you and avoid big mistakes. Your accounting, for example, should be done by a professional accountant. They have experience and extensive financial and tax knowledge, which in turn will help you to do everything right and only pay what you need to pay. You’ll also avoid getting into trouble for doing it incorrectly. 

  • Hiring People Who Are Just Like You

Ideally, when you hire, you want to hire people who bring something new to the table. Hiring people who are just like you will only create an echo chamber that leads you nowhere fast. Your hires should all be talented and right for the role, so taking your time and figuring out the essential requirements is key. What should they bring to the role, and what can they learn on the job? Compromise may be required if you’re going to end up with the ideal candidate! Your team as a whole should support your effort and understand your vision for the company. Bear in mind that getting this wrong will cost you in the long run. Onboarding is a long and costly process, and employee turnover is even more expensive. 

Have you considered everything here in order to keep your business safe and thriving? Let us know in the comments below. 

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