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10 MISTAKES EVERY NEW BUSINESS SHOULD AVOID

  1. NOT CREATING A WRITTEN BUSINESS PLAN.
    The success or failure of your business depends on how well you’ve charted your course.
     
  2.  IGNORING THE INTERNET.
    The Internet can give your small business a global as well as local identity and a 24x7 channel to reach your customer base.
     
  3.  INCONSISTENT BRANDING OF YOUR NEW BUSINESS.
    Your business name should help a customer immediately know who you are and what your business is about. But finding the right name is not as easy as you might think, and branding your business poses even more challenges.
     
  4. INSUFFICIENT FUNDING OR LACK OF CREDIT OPTIONS TO GET ENOUGH FUNDING.
    Starting a business takes resources—and money. And money management in the first few months can be critical to the survival of your new business.
     
  5. PICKING THE WRONG BUSINESS STRUCTURE (LLC, INC., LLP).
    Your legal business organization can affect your tax structure, so choose wisely
     
  6. NO FINANCIAL REPORTING.
    Are you making money or losing money on each job or project? To survive, every small business owner has to stay in touch with the financial state of the business and know how to run key reports
     
  7. EXTENDING CREDIT TO CUSTOMERS WITHOUT PROPER CREDIT CHECKS.
    The fastest way to get into debt is to skip customer credit checks
     
  8. POOR PRICING AND COST ESTIMATING.
    Accurate pricing and estimating can make or break any new business.
     
  9. INSUFFICIENT FINANCIAL MANAGEMENT SKILLS.
    Do you know how to manage the financial aspects of owning a business, such as invoicing, paying employees or contractors, and monitoring cash flow and your bank accounts?
     
  10. POOR HIRING PRACTICES.
    Hiring too few or too many employees can affect cash flow. And not understanding the laws relating to hiring employees can result in fines from the government. The better you prepare yourself and understand the challenges of starting a new business, the more likely it is that your idea will become a profitable and growing company.
Written by Rita Benedetto from Account on Me, Certified Quick Books Pro Advisor. Can be contacted by email at acconme2004@aol.com    Wednesday, 15 July 2009 15:06    PDF Print E-mail