The Costliest Business Mistakes You Can Make
While it's no secret that making mistakes are merely a part of business, some errors create significantly more damage than others. As an entrepreneur, it's critical that you can distinguish between taking calculated risks and choosing downright foolish decisions.
Hiring The Wrong People
When first starting out, it's typical for eager business owners to simply land on the candidate that seems 'good enough' for the job- especially if the budget seems tight and time is of the proverbial essence.
This tactic, even if it seems convenient, has several short-term and long-term drawbacks. For one, you have a tremendous chance of being stuck with employees who can't adequately pull their weight. This requires you spending additional time micromanaging (and who has the time or the desire to do that?). Moreover, you'll end up paying more money on having to retrain or hire new talent.
Don't forget that you don't have to jump into full-time employees right away, either. In fact, many small businesses perform very successfully with contractors or part-time staff.
Cheapening Out On Marketing
Many people make the mistake of assuming they shouldn't invest in marketing until they start generating substantial sales or leads. This is also a costly mistake. No matter how exceptional your product or service is, you won't gain traction if people don't know about it.
At the very minimum, you need a website and a digital marketing strategy that provides you with an online footprint. From there, you should note that most entrepreneurs spend, on average, about 10% of their net profits on marketing costs.
Most business owners have perfectionist tendencies. Likewise, many of them struggle with relinquishing control, especially over a business idea that's taken years of grit, time, and dedication in developing.
That said, one of the costliest mistakes you can make is attempting to do everything yourself. Two scenarios will happen from this. You will end up doing everything, but you'll be spread incredibly thin and won't be able to achieve optimal results. Or, you will wind up burning out altogether.
Remember that people are experts because they have spent years dedicating themselves to a particular craft. Whether it's social media marketing, accounting, or graphic design, a lackluster, DIY job can end up hurting your business far more than helping it.
Evading The Organizational Process
Starting a new business is exciting, and it's easy to get lost amidst the chaos of hiring staff and launching new products.
However, it's essential that you take the proper steps to establish your business legally, locate your funding, create your budget, and set your books in order. The more you have things officially running on paper, the easier it will to manage your operations, especially if you want to scale your work in the future.
By taking the time to structure your organization (and automate it as much as possible), the easier it will be for you and your employees to maintain good habits from the very beginning.
Nicole is a Licensed Marriage & Family Therapist and professional freelance writer. She is passionate about helping people uncover and unleash their authentic selves (both in her therapy and written work). Nicole enjoys blogging about mental health, addiction, and self-esteem. Check her out on...