Everyone makes mistakes. You’ve heard that all your life. And, often, mistakes are what drive successes. However, there are some mistakes in business that you cannot afford to make or overlook. Since Direct Capital is always here to lend a helping hand and aid in your success, here are 6 common mistakes business owners make, and how you can avoid them.
Mistake #1: Not Having Signed Contracts
When it comes to partnerships and collaborations, all agreements need to be in writing. There’s nothing worse than having a business partner retire, for example, and not know how and when to divide all the assets. Whether you are working together in your business with someone, or choosing to partner with an external vendor, make sure all of your contracts are in black and white. Only legal documents (not verbal agreements) can keep you free from lawsuits or disagreements.
Mistake #2: Overlooking Your Customers’ Needs
Business ideas will only take you so far. If your customers aren’t all-in with your products or services, how can your business succeed? Listen to what your customers have to say. Weed out the comments that will truly be helpful for you to improve, and revisit your ideas. Rework them; make them better and more suitable for your audience.
Mistake #3: Not Knowing Your Competitors
Thinking that you are the only one in your market doing what you do won’t get you very far. There are many competitors out there that are trying to capture the same customers you are. Learn about them. Discover the things that help you stand out among them. And choose those things to use in your marketing. It’s one thing to say you’re unique, but it’s another to truly show just how unique you are.
Mistake #4: Letting Your Ego Get in the Way
Often small business owners are the CEO, president, vice president, and Chief Officer of the company. These are great titles to hold, but you can’t let them get in the way of your success. Even though there will always be tasks that are far from glorious, you’ll still be responsible for them. It’s time to just get it over with, and realize that they make a difference. Everyone working together to complete projects and jobs within the business are all for the same goal… sustainability and success!
Mistake #5: Underestimating Your Financial Needs
Don’t assume you can pay for everything out of pocket. Equipment upgrades, marketing, stocking up on inventory… all those things cost a pretty penny. Getting yourself into a financial bind can be tough to get out of. There are plenty of options out there for business owners to access the capital they need to manage those costs. Consider lenders (like Direct Capital!) to get the funds you need upfront. That way, you have time to budget and pay it back on your terms.
Mistake #6: Thinking Short-Term
We know you understand the importance of seeing and thinking about your future. But it’s so easy to get caught up in the now. We’re not saying taking actionable steps towards short-term goals are bad. We just mean that, in business, you have to think about sustaining growth not just doing something that will create growth temporarily. Like we said… this is not news to you. Sometimes, though, you just need a quick reminder.
Remember these tips and keep your business going strong in 2016. And when you need capital to keep mistake #5 at bay, we’ll be there. Click on the banner below to learn more about Direct Capital, or give us a call today at 866-777-9198.