(article written for speedycourse.com by TrainingPH)
Business owners, whether seasoned or new, commit mistakes that may break their business. Below, we enumerate the five common mistakes, so we may learn from the experience of other business people.
1. Not registering the business. Some business owners chose not to register their business right away to save on taxes. The downside is when there is an opportunity for a B2B deal and the business lacks accreditation documents, this may become a “gone” deal. In addition, when you are operating without business permits and receipts you risk being audited by local government units and the Bureau of Internal Revenue, which translates to penalties.
2. Grabbing every opportunity at once. Most business owners are visionaries, they usually see opportunities on top of opportunities. When there are new opportunities, business owners tend to get excited and want to grab it at once. However, the following needs to be considered:
- Budget Reality – If the funding will be coming from an existing business, projections need to be made based on current cash flow and future trends. It is always best to get a separate funding for new opportunities, if current business/es are not yet stable.
- Expertise – One must also check if he has the expertise on the new opportunity or if there are available resource people within the entrepreneur’s network.
- Branding – Will the new opportunity be aligned with the current brand/s the entrepreneur has? This is important especially if the entrepreneur has his own brand/s. The new opportunity might affect brand consistency and strength.
3. Being a one-man team. New entrepreneurs have a tendency to work as a one-man team. This does not just happen when the entrepreneur does not have any employees. Most often, this happen even when there are managers, supervisors and rank and files hired in the company, especially if the business owner is very much knowledgeable in the technicalities of the business. Here are some tips to ensure business growth, and avoid this mistake:
- Know your role – As the owner of the business you are supposed to be strategic. Give the directions and set targets for each team. Measure the achievement consistently. Scan the market frequently and share the insights to your team. Leave the tactics to your team. You cannot be owner, HR, accounting, sales, and IT at the same time.
- Delegate Properly – Once you have your managers and team leaders in place, delegate. Centralizing decision making will slow your business down. Set limits of authority to reduce risk and support responsible risk taking.
4. Changing Goals Too Often. Young entrepreneurs have a tendency to change goals often in order to go with the trend. Yes, it is necessary to adapt to market changes, but changing too often will have a huge financial impact in the business, because every project will get started but nothing will get done.
5. Aiming for Perfection. When launching a new product or service, most people want to showcase the best. However, when getting the best will take too much time, sometimes it is better to be the first and improve consistently than being the best. Waiting for a perfect product or service might take a lot of opportunities away from the business, if it takes too long to achieve. You may want to release a functional product and helpful service and polish along the way.
These are some of the top mistakes we got from entrepreneurs from TrainingPH‘s Business Starters Workshop, which we were able to address by helping them design a very easy to understand business model. The model they design serves as a guide as they grow their business and achieve results.
TRAININGPH aims to help businesses and organizations grow by providing interventions that will enable them to achieve their goals and vision.
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