Five mistakes of new business owners

  Published: 3rd January 2024

The leap from employment to business owner is huge; it can be daunting, it will almost certainly be challenging, but the rewards at the end of the day will be significant.

Obviously, every new business owner enters ownership wishing for success, but unfortunately, we have seen many fail due to mistakes that can be easily avoided. Here are just some of those mistakes and how to avoid them…

Not having a business plan

Having a thorough understanding of how your business will run, the market in which it will operate, key goals, and countless other aspects, are critical components to ensure you get the business off to the best possible start. Without this it is unlikely you will be able to clearly explain your business to prospective clients, suppliers or contacts.

Not building a network of contacts  

Having a strong network of contacts will prove to be one of your key sources of clients, suppliers and referrals, therefore when you are just starting out this can prove to be crucial. If you’re unsure where to begin, find and join your local Chamber of Commerce, who will have an existing network of local businesses for you to get to know.

Not having an effective credit management strategy in place

Credit management begins at the outset of any client relationship. You must first establish payment terms with a client, before moving on to accurate and timely invoicing and concluding with chasing for payment when necessary. This is a customer focused function and therefore honing your skills in this area should be a top priority.

Not delegating work

Business owners can very easily fall into the trap of trying to take on all aspects of the business themselves. However, long term this will hugely hinder the business’ ability to grow as your attention will be taken away from your core business operations. Delegating work to an appropriate person will prove crucial to business success.

Not having external support

It is a common misconception that outsourcing tasks will cost a business money. Whilst, of course, there is a cost associated by receiving support from a third party, (whether it be marketing, sales, administrative, etc.) the impact to your cash flow in the long run will greatly outweigh initial costs. Ultimately, you want to spend time on your core business operations rather than the time-consuming task of business administration.

If you are looking for support for your start-up business in 2024, be it finance or back office support, speak to our team today!