- June 3, 2022
- Posted by: AccSource BD team
- Category: Uncategorized
The Australian Bureau of Statistics states that over 60% of small businesses in Australia shut down in the first three years, which is often because of the common mistakes they’ve made along the way- Damian Blumenkranc- Entrepreneur at Entrepreneurs Organization Melbourne.
Running a business is not simple. There are several things to think and decide about, and the pressure can lead to bad decisions which can hurt your success potential or set you back. While you don’t have a fool-proof plan for a successful business, here are some common mistakes small businesses should avoid:
Common Mistakes Small Businesses Should Avoid:
In the haste to launch your business, you may rush things up. You may prefer to keep rolling, and spending too much time on a work process may feel like a waste of time. This may be anything from sufficient market research to selecting a vendor.
You should take your time. It is not about procrastinating but working on your goals without feeling chased.
2. Not selecting a good business structure
While planning your business product or service, the goal is to structure your business accordingly. Usually, there are three models- sole trader, partnership, and public/ private company. Every model has its advantages and disadvantages.
The idea is to choose a model which makes sense for your business.
3. Agreeing to a partnership
Having a friend, family member, or colleague as your business partner may be a great solution. But not all personal and business relationships can work well.
Make sure you consider all the factors when choosing a business partner and address their role, pay and investment.
4. Not getting the agreement written
Sometimes business partners do not put their partnership details in writing. When two people get along well, having a contract may not sound too useful.
However, it is very important to have a partnership agreement. Set out your clauses according to what your partnership entails.
5. Ignoring connections
You may be a great entrepreneur, but you cannot go far without the right contacts. Often businesses fail to create connections.
Learn to recognize talent and network professionally with people from your sector and other sectors for help.
6. Hiring the wrong people
When looking for expansion, you may want employees on board. Sometimes you may get so caught up in picking the best candidate that you omit the appropriate employment process.
Check your employment contract and consider all aspects before hiring.
7. Having one personal and business account
Often businesses think they are just starting and don’t separate their personal and business accounts. As a business, getting every detail of money spent is important. Having one account for personal and business expenses can make it confusing.
8. Getting very big or highly niche
Defining your market is essential when developing a small business. Who is your targeted audience? How will you reach them? Though it is essential to know your target audience, getting too niche-oriented is not wise. If your audience is very small, you may have problems reaching them.
Often business owners overspend. Make sure your costs are low to enhance your cash flow. In due time, the strings will loosen, and you will have better financial flow.
10. Managing everything alone
A small business owner may try to do everything independently but remember you are not a jack of all trades. Outsourcing can be the best way for entrepreneurs to grow their business, get some free time to focus on core activities that need their expertise, and develop a team positioned for greater success.
You can outsource your accounting, operational and administrative needs to ensure your business processes are in check.
With Accsource, you can get highly flexible and customized service models. The idea of Accsource is to give the entrepreneur complete control. Everything lies in their hands, from hiring to project KRAs. And once the team is built, they deliver accurately and the processes are managed efficiently and effectively.
Perhaps if you want to include a winning team in your business, Accsource is the best option for you. Click here to speak to our experts now!