Avoid these common pitfalls when starting up your business

Written By Gary Spirer Published February 10th, 2010

Are you interested in starting a business, but worry about making some common mistakes? Here’s what to avoid.

Step 1. *Know your business and its market?*

Ask yourself is the product or service going to meet market demands. Often business owners fail to examine this basic question and proceed to put out a good or service that has no buyers. Avoid this mistake by doing preliminary research first and know the market dynamics surrounding your product.

Step 2. *Plan in advance*

Understand what your business will require to succeed. How many hours per day can you devote to the business realistically? If you can answer this question, then you are prepared to handle your business. On the other hand, if you cannot answer this question, you need to consider more planning for your business and for work/life balance.

Step 3. *Spreading the business too thin*

Understand when to refuse an opportunity. Often business owners want to grow their business too rapidly and accept any and every opportunity that arises. However, too much growth to quickly can actually stifle a business if there is insufficient staffing or limited funds available to balance the increased costs of such growth. Know the limits of the business and your own boundaries before blindly accepting any project that comes your way. No business can serve the needs of the entire population. Be selective.

Step 4. *Know the financial dilemmas businesses face*

Maintain insufficient cash reserves while planning for higher than normal sales projections can lead to financial disaster. Many times business owners misappropriate the amount of working capital to cover at least four months of expenditures, such as payroll and taxes. As a result, many businesses fail due to lack of proper financial planning.

Avoid these common mistakes and watch your business prosper. Remember, careful planning and financial projecting can really determine the success of a business. Please visit for more great business advice.

Go to https://www.stepsto.com/home to learn how to start up your business, grow your business, make money and live the life you want! We have advised and evaluated thousands of companies from start-ups to Fortune 500 Companies. Steps To combines this knowledge with 25 years of research on the right steps the Greatest Minds in History took to achieve extraordinary success.

 


Roger Due

Investing in Your Destiny® & Coaching Program - Wealth Building Summit Dallas, Texas

My name is Roger Due and I am from Albuquerque, New Mexico and I am the owner of the Monsano software company. This has been an absolutely fantastic conference. This is the best I have ever been to.