By using this site, you agree to the Privacy Policy and Terms of Use.
Accept
Start Your Business Magazine
  • Topics

    Grow, expand and leverage your business..

    Grow your start up business with our experts and industry insiders…

    Get Started

    Quick Links

    • Finance
    • Marketing
    • Technology
    • Business Books
    • Wellness
    • Interviews
    • Franchise

    Our Newsletters

    Our website stores cookies on your computer. They allow us to remember you and help personalise your experience with our site..

    Read our privacy policy for more information.
  • Trending
    TrendingShow More
    Communicate Better
    Start Your Business Start Your Business
    Majority of UK Employees Looking for a New Job
    Start Your Business Start Your Business
  • How To
    How ToShow More
    Tips for Running a Restaurant in the Most Efficient Way Possible
    Start Your Business Start Your Business
    Becoming self employed…
    Start Your Business Start Your Business
    Vet Start up
    Start Your Business Start Your Business
    Builder’s Growth
    Start Your Business Start Your Business
    Market for Construction
    Start Your Business Start Your Business
  • Agenda
    AgendaShow More
    How to Keep Your Business Compliant When Selling Internationally
    Start Your Business Start Your Business
    What does the future hold for plastic packaging?
    Start Your Business Start Your Business
    How International Hiring Can Help Startups To Scale In 2023
    Start Your Business Start Your Business
    Creating and Maintaining a Culture of Equality in Your Business
    Start Your Business Start Your Business
    The Great Resignation or Quiet Quitting
    Start Your Business Start Your Business
Reading: Business Pitfalls
Connect
Start Your Business MagazineStart Your Business Magazine
Aa
  • Contact
  • Blog
Search
  • Agenda
  • Blog
  • Finance
  • Growing
  • Marketing
  • Opportunity
  • Starting Up
  • Technology
  • Wellbeing
  • Contact
Have an existing account? Sign In
Follow US
  • RSS
  • Terms And Conditions
  • Privacy Policy
  • Contact
  • Licensing
Copyright © 2014-2023 Ruby Theme Ltd. All Rights Reserved.

Business Pitfalls

Start Your Business
agenda
Share
6 Min Read

The Pitfalls Every Small Business Owner Should Avoid

Every business faces challenges, regardless of size or age. The problem is that for small business owners, mistakes can lead to closure. Yes, it’s your job as a business owner to beat them if you are to stay ahead of your competition and grow your enterprise. We have compiled a few mistakes you should avoid if you are to grow your enterprise. 

Grave Mistakes to Avoid in Business

  • Tax problems 

Many small business owners fall into tax problems unknowingly. Some business owners are busy that they forget to file taxes, while others ignore due to insufficient information on how to handle tax. Either way, the penalties are so high that many business owners give up and close their businesses. If you are new to the business world, then beware of making tax-related errors. If you don’t, you will soon find your business struggling to pay up additional taxes, penalties, and interests.

If you are already in this heated spot of tax issues, then don’t think of closing the business just yet. There are skilled tax attorneys who can outsmart the IRS, and they can help you fix the issues your business is facing. Don’t try to learn things like tax obligations and the IRS lingo on your own. It might bring your business to its knees. 

  • Misinterpreting the market 

If you are planning to start a business, how well do you know your market? This is a challenge and a second chance to study and test your idea. If you are not a seasoned entrepreneur, your case is not hopeless. A thoroughly performed market research could light the way and show you where you should direct your attention. Here, you should focus on answering two main questions: what does the market need and who need your solution the most? You may have the right product, but when placed in the wrong industry or audience, it will die! If you are having challenges understanding the market, you can seek a hand from an expert.

  • Hiring too soon

As the business grows, you will, or may have seen the need for an extra helping hand. However, when this is done hastily, your business can suffer financial blows. The blows are severe if the employees are too many or highly skilled. So what is the right way to do it?

Well, take time to understand the market trends. It is common for businesses to experience massive traffic at particular times of the year, but your decision should not be based entirely on this trend. If there is an undeniable need for a hand in your business, you should start with part-timers or freelancers before hiring fulltime employees. This will be a friendly option for your finances and in handling the workload.

  • Moving slowly 

Sadly, many small business owners assume that they are destined to handle small projects only. Now, you are in the industry to win, and if you have the skills, then you should seek other more challenging and lucrative opportunities. Otherwise, how will you ever grow?  Focusing on the small projects not only stifles creativity but also keeps you in the same zone for long. Study those major projects to know what it takes to win the gigs. You might be lucky and, within no time, you will join the big fish in the industry.

  • A lack of financial planning 

Many small business owners assume that financial planning is not that essential to startups. They fail to see its impact on the business and, never dedicate their time looking at it. Others spend on personal and business needs without tracking, and before they know it, they are closing down and filing for bankruptcy. Don’t make this mistake! You should monitor the cash flow carefully, make financial projections, and allocate funds to different facets of business wisely, to prevent overspending. You should also delineate personal affairs from the business to avoid inventory losses.

  • Poor management 

If you are already in business, how often do you oversee operations? Whether you have one or ten employees, watching over their work and correcting promptly will keep the company on the intended path. Don’t ignore that part. In fact when you let employees do as they wish, then your business will eventually fall apart!

Final remarks:

The mistakes we have listed above are just the tip of an iceberg. As a small business owner you ought to keep learning and we hope you have picked up a few lessons!

TAGGED: header

Sign Up For Daily Newsletter

Be keep up! Get the latest breaking news delivered straight to your inbox.

By signing up, you agree to our Terms of Use and acknowledge the data practices in our Privacy Policy. You may unsubscribe at any time.
Start Your Business February 27, 2020
Share this Article
Twitter LinkedIn Reddit Email Copy Link
  • RSS
  • Terms And Conditions
  • Privacy Policy
  • Contact
  • Licensing

Get the latest from us delivered straight to your inbox

Start Your Business Magazine: The Ultimate Business Start Up Guide provides information advice and guidance for entrepreneurs and new business start ups. Get the latest from us delivered directly to your inbox.

Our website stores cookies on your computer. They allow us to remember you and help personalize your experience with our site..

Read our privacy policy for more information.

Copyright 2023 Gambit Interactive Media Limited – All Rights Reserved.

Manage Cookie Consent
To provide the best experiences, we use technologies like cookies to store and/or access device information. Consenting to these technologies will allow us to process data such as browsing behavior or unique IDs on this site. Not consenting or withdrawing consent, may adversely affect certain features and functions.
Functional Always active
The technical storage or access is strictly necessary for the legitimate purpose of enabling the use of a specific service explicitly requested by the subscriber or user, or for the sole purpose of carrying out the transmission of a communication over an electronic communications network.
Preferences
The technical storage or access is necessary for the legitimate purpose of storing preferences that are not requested by the subscriber or user.
Statistics
The technical storage or access that is used exclusively for statistical purposes. The technical storage or access that is used exclusively for anonymous statistical purposes. Without a subpoena, voluntary compliance on the part of your Internet Service Provider, or additional records from a third party, information stored or retrieved for this purpose alone cannot usually be used to identify you.
Marketing
The technical storage or access is required to create user profiles to send advertising, or to track the user on a website or across several websites for similar marketing purposes.
Manage options Manage services Manage vendors Read more about these purposes
View preferences
{title} {title} {title}
Join Us!

Sign up to our free newsletter and never miss a hot topic!

Zero spam, Unsubscribe at any time.
Go to mobile version
Welcome Back!

Sign in to your account

Lost your password?