3 Mistakes You Must Avoid When Starting a Business For The First Time
If you’re starting a business for the first time, you’re going to need all the help you can get. Even then, there’s still a good chance your business will fail. Sounds harsh right? While it may be harsh, it’s also the truth. And in startups, the truth is often hard to swallow.
I’m not saying this to discourage you from launching your first business. I’m simply setting realistic expectations so you’re well prepared when you feel it’s time to give it a shot. I can’t guarantee success, but I can offer insights that may help you avoid certain pitfalls along the way. That said, here are three mistakes you must avoid when starting a business for the first time.
Failing to Stay Grounded
Setting goals is not only supposed to keep you fired up, it’s also supposed to keep you realistic and on track. Each goal of yours can also be seen as a progress check. If you aren’t meeting your goals, then that should correlate directly to a lack of progress.
It’s common for first time entrepreneurs to set overly ambitious goals. They are so excited about their big idea that they fail to stay grounded. While it’s great to be ambitious, it’s not so great to constantly fall short of the mark. If you overpromise and underdeliver, your investors, advisors, and even worse your team may begin to lose confidence in you.
When you set goals make sure you remember to always stay grounded. Create your ‘target’ goal as well as your reach goal. In addition, you should always set milestones that can be easily tracked while you work towards those goals. This way, your team will stay on track and motivated as you make constant progress.
Not Putting All Agreements in Writing
I can’t stress this one enough. If the deal is not in writing it’s not done. Whether it’s a new client, partner, or new team member you need to make sure every single agreement inked in writing before moving forward. Contracts aren’t typically the most friendly interactions. That said, they aren’t supposed to be.
If you aren’t sure how to craft the contract you can always look up various templates online. Then, you can use an online document signing solution that allows you to seamlessly send, sign, and store contracts.
Ignoring Your Finances
Account typically isn’t people’s forte. That said, most business owners ignore proper accounting practices in their early stages. As you scale your business, there’s a good chance you’re going to hire an individual or department to handle your finances completely. Until then, it’s up to you to make sure all your finances are in check.
The best way to do this is to use an online accounting solution. These platforms allow you to seamlessly send invoices, collect payments, and track all your expenses. Even better, you don’t need to be a finance whiz at all to use these products. I recommend getting setup as soon as possible, that way you can be sure all your finances are organized from day one.
Starting a business is one of the toughest paths you can take in life. If you want to maximize your chances of success, you need to watch our for common mistakes. If you’re a first time entrepreneur make sure you avoid the three mistakes listed above.