Starting a Business
Your idea is solid gold and you’ve written a bulletproof business plan. The rest should be easy, right? The truth is, you’re about to hit the toughest stretch when it comes to starting a business. Doing some solid research can help you learn from the wisdom of others, both things to do and to certainly not do.
Here are five pitfalls to avoid when getting your business off the ground.
1. Spending too much too soon.
Investors might come once you’ve proven your concept, but the initial financial burden will be yours alone. You can drain your savings and take out small business loans, but move forward slowly — and carefully. Find ways to build your business on a budget where possible.
2. Delegating too much, or too little.
Sole proprietors often find it difficult to delegate responsibilities to employees once the venture starts to grow. By choosing your staff carefully, you’ll be more comfortable handing off important tasks when the time comes.
3. Thinking failure is final.
The numbers about businesses failing within the first one to five years haunt you. But take solace in this: sometimes the first idea flops, helping you create an even better second or third idea. Don’t take a single loss as a signal that you’ll never succeed.
4. A lack of legal or financial counsel.
Develop good relationships with a lawyer and an accountant who have experience working with small business owners. Applied at the onset, their advice, and fees, will pay dividends down the road.
5. You’re in a hurry to succeed.
The average new business owner will reinvest meager profits in the first year, draw a small salary in year two and finally draw a larger salary in year three. It may happen faster for you. It may happen more slowly. Be prepared for slow growth, and celebrate anything better than that. Don’t let this list intimidate you, but also know that this list is not exhaustive. You’re about to enter into some of the most challenging and rewarding work possible. Keep an open mind and be prepared to work hard. If Community Bank can help you in any way, from banking solutions to business advice, give us a call or stop by.