We all make mistakes— especially in business. The key though is to learn from your mistakes, identify the critical takeaways and use this newly gained knowledge to ensure you don't revisit this same mistake. We thought we'd look at a few of the more common mistakes that entrepreneurs make.
Not having an emergency fund on hand
Having reserve money for when the sales slow down or the season is past is hugely important for any business owner. Not having enough reserve or any for that matter could leave you in a less than ideal position. This might mean that you have to increase discounts on current inventory and thus get it off the shelves.
Trying to micromanage
You have a team working with you—use them, utilize their skills and talents. By trying to do absolutely everything yourself, you're simply not going to be as effective and you will inevitably burn yourself out.
Using advertising dollars unwisely
Especially when you start working with systems such as AdWords, if you're not on top of it, if you don't monitor keywords and clicks vigilantly you could very well end up spending tons of money and yet get no genuine results.
Not managing cash flow
Also something a small business owner has to be on top of. If you don't track everything coming in and going out, you're going to find yourself in trouble quickly.
Not using an accounting service
Again, this goes back to trying to do everything yourself. And while you may have some accounting knowledge, utilizing the services of an accountant or a firm could actually end up saving you far more than what it costs.
Hiring on too many employees
When just starting out, you have to watch all expenses carefully—one of your biggest are your employees. And then, of course, you get into a position in which now you have the unfortunate task of firing those excess employees.
Learning from your business mistakes and going on to make smarter decisions is what will ensure your success. One smart decision you can make for your company: a commercial loan from First Union Lending. Find out what you qualify for!