Starting your own business can be one of the most hectic and time-demanding processes that a person ever willingly takes. Often times, some of the biggest headaches that entrepreneurs suffer are as a result of mistakes which ultimately provide much needed insight into their businesses. By following these five problems, you can learn a few tips that are vital to know and will save you a lot of time and stress down the road.
1. Failing to Track the Numbers
A lot of the time, new business owners get so caught up in the process of getting used to being an entrepreneur and making sure everything is running smoothly with the operations of their company that they forget to keep an eye on their numbers. While you may follow your bank account, are you paying attention to all of the analytical metrics of your business? By focusing in on numbers early, it is easy to correct any issues before your company grows.
2. Underpricing
Many new companies underprice their products or services in the beginning because they feel that it is the only way to get a competitive advantage or foothold in their marketplace. Consumers will be willing to pay what you product or service is worth, and by underpricing at the beginning you are not only opening yourself up to losing repeat customers when you increase prices to the standard rates, but you are also missing out on extra income at a time when money is most needed.
3. Renting Too Much Office Space
All entrepreneurs have grand hopes for their business. Who hasn’t pictured themselves as the next Steve Jobs or Mark Zuckerberg? Thinking big about the future is one of the best parts of starting your own company, but don’t overestimate your early success. Many new businesses start off in too large of an office due to their anticipated growth. When sales are slow in the beginning, this extra, un-used space ends up costing much more than is needed. Start with economic office space which gives you the potential to move up in the future as your grow.
4. Not Focusing Enough on Repeat Customers
Larger corporations know that repeat business is the key to building a solid brand. Early on, many new companies do not focus on repeat customers and it slows their growth considerably. Gaining new customers can be difficult when you are first starting up, and by maintain healthy relationships with the ones you obtain you are able to increase sales considerably, early on.
5. Not Taking Any Sick Days
Yes, starting your company is a very time-consuming process, but it is important to still take time for yourself. Neglecting friends and family due to your new venture can cause strains on the relationships later on. Take time off to spend relaxing and enjoying life. No matter what you think, turning the phone off for a few hours every once in a while is neither going to cause your business to fall apart, nor hinder your growth.
With all of the different things you need to focus on as an entrepreneur, being able to save time and trouble during the initial growth of your business is critical. While some problems and subsequent realizations are essential to the development of you and your business, being able to learn from the past experiences of others can give you the knowledge you need to avoid running into those problems yourself.
Mike Gardener is one of the managing owners of The Office Providers. Mike contributes regularly to a number of different blogs and publications and helps small and large companies with their office space needs. Check out Mike’s site to find out more.
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