5 Pitfalls to Avoid as a New Business

Starting your own business is always exciting, as its a chance to do something meaningful to you. You get to be creative, and work in an area that genuinely interests you. But it’s not all plain sailing, there are a number of things you’ll need to get right if you want to succeed. Here are some things to bear in mind.


Always do your market research

One big issue is it’s easy to be biased as a business owner. You might think that your products or services are the best thing sliced bread because you genuinely believe in the venture. But your potential customers might have other ideas. They might want some tweaks to be made, or they might not like anything about your ideas. They might feel the price point is wrong, or have other suggestions about what changes need to be made. Conduct market research and take the results seriously, after all, these are the people that are going to be buying from your company. There’s no point mass producing a product or putting everything in place to run a particular service and then people don’t buy it because they don’t like it. 


Don’t overlook branding

Branding is so important in business- it’s what helps you to stand out amongst your competitors. Branding builds trust, which is invaluable for newer businesses as you’re attracting customers who will have never shopped with you before. Look into ways you can build up and improve your brand, thinking of your colours, slogan and the message you want to portray. Read resources like this brand protection guide to get the best knowledge and understanding of the area. 


Make sure you’re sticking to a budget

It’s so easy to get carried away when you first start up a business. You might want a swanky office or a big shop right away, you might want to employ lots of staff, and order in lots of materials to get started. But don’t get ahead of yourself, the books need to be balanced. If you spend too much up front you’ll end up in debt which is expensive, and can grow if your business doesn’t take off as quickly as you’d hoped. 


Consider outsourcing

Outsourcing isn’t just something that larger businesses can take advantage of. It’s something you can utilise in your smaller venture too, but be sure to weigh up the pros and cons. A professional company may be able to do things for you that you can’t, but there will be costs involved. See which areas would be worth outsourcing in your company. 


Don’t forget taxes

As a business owner, you’re of course responsible for paying your own taxes. Get everything registered and get yourself an accountant. If you get this wrong you can end up having to pay fines and penalties, or even serve a jail sentence if the government believes you’ve tried to swindle them to pay less.

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