| ons of people each year start up small businesses | | | | revenues. |
| around the world. And, the vast majority of them will | | | | 5. No Business Plan-While this would seem to be |
| encounter challenges along the way. By learning what | | | | common sense, many business owners fail to build a |
| the most common mistakes made by new small | | | | business plan. And, without a business plan, you have |
| business owners, you can work to avoid them as you | | | | no clear cut business direction. |
| establish your own small business. | | | | 6. Lack of Suppliers- Nothing is more frustrating to |
| Here are the top 10 small business start up mistakes | | | | customers than not being able to obtain the products |
| to avoid: | | | | that they are seeking. Your business needs to |
| 1. Lack of Market Research- Before you start a new | | | | establish working relationships with reliable suppliers so |
| business, be sure that you complete a thorough | | | | that you can consistently provide products to your |
| market analysis of the industry, the local and regional | | | | customers on an ongoing basis. |
| opportunities and the costs involved with the | | | | 7. Over Staffed- Too many employees can place a |
| opportunity. This valuable research can help you to | | | | large financial strain onto your business. So, be sure to |
| avoid selecting the wrong business opportunity and | | | | under staff until you are comfortable with the number |
| can also ensure that you correctly price your products | | | | of staff required to manage your business on a day to |
| and services. | | | | day basis. |
| 2. Lack of Accurate Records- Records are crucial for | | | | 8. Lack of Employee Supervision- While we would |
| any small business. Some of the most important | | | | love to trust every employee we hire, leaving |
| business records include tax forms, tax payments, | | | | employees alone without supervision can open |
| expense logs, employment documents and legal | | | | yourself up to theft or lack of work due to personal |
| documents. Without accurate records, you are placing | | | | distractions of the employee. Be sure to install camera |
| yourself and your business at risk. | | | | equipment in your business if you are unable to be |
| 3. Lack of Capital- Many small businesses begin | | | | present during all working hours to monitor activity. |
| without sufficient capital to sustain them. Be sure that | | | | 9. Ineffective Hiring- Choosing the wrong employee for |
| you have taken an accurate assessment of the | | | | a job can be costly. Spend time in the interview |
| required start up and operating capital for your new | | | | process and use systems to improve your chances of |
| business and add additional funds in the event that you | | | | a strong hire. |
| run into unforeseen challenges. | | | | 10. Lack of Business Security- One of the largest |
| 4. No Merchant Services Capacity- Many consumers | | | | costs that many businesses incur is employee theft. |
| prefer to make payment for their products and | | | | Be sure that your business is protected by use of |
| services using a credit card instead of with a check or | | | | cameras, software programs and cash register |
| cash. So, if your business does not accept this form of | | | | programs that monitor activity to reduce your risk of |
| payment, you are limiting your pool of potential | | | | loss. |
| customers, and ultimately costing your business | | | | |