Running a small business is a challenge, and involves juggling a whole range of tasks and priorities. Nothing can fully prepare you for the challenge of running your own business; there are many things that you will end up having to learn as you go along. However, there are some mistakes often made by business owners, that crop up time and again. Read on to discover some of the common mistakes made by small businesses, so that you can avoid these potential pitfalls:
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Not Preparing a Thorough Business Plan
In a rush to get their business up and running, many people skip putting a thorough business plan together. Without a robust business plan, which includes SMART goals, it is hard to know precisely what you are trying to achieve and how you are going to make that a reality.
Not having a business plan means that there are no clear guidelines for how much you plan to spend and how much you need to make to break even. In this situation, essential details of running a business are left merely to trial and error, with no long term plans for success.
Using the Wrong Suppliers
Your business depends on the supply chain to enable you to produce goods to sell. An unreliable supplier can upset the whole chain and leave you struggling to meet agreed deadlines for your customers. For example, if you are dependent on gas oil to power your equipment, you need a reliable supplier to provide that for you, or you will be left unable to operate your equipment and fulfill customer orders. That’s why suppliers such as gasoildrums.co.uk are worth checking out if you are looking for reliable gas oil suppliers.
The need for reliability and on-time delivery extends throughout the supply chain beyond gas oil, from your packaging materials, through to your component parts, each stage of your production process depends on suppliers that you can trust.
Expanding too Soon
Launching a business, and then finding that it performs better than expected is hugely exciting. Success soon after starting out in business, shows that all the effort and time you dedicated to pursuing your dream were worth it. If you find yourself in this favorable situation, you may be tempted to immediately try and replicate that success by quickly scaling the business up. Expanding fast can work in some instances, but it is a big gamble to take. Expanding into multiple locations, in particular, can be extremely draining on the finances of any business, especially a newly formed one.
Opening up new branches means increased rental and rates to pay on business premises, along with increased staff costs too. For some businesses, expanding quickly can be a case of too much too soon, and can destabilize the whole company as you struggle to keep up with the mounting costs. It is far better to expand the business because there is a strong demand for your products, rather than merely expanding because you can.