For businesses to succeed, owners need to be on their game. They need to know (and do) several things at once. They need to get the job done and done right. Business owners also need to avoid making mistakes that could potentially cost them their businesses, or a whole lot of money. Here are a few major pitfalls that first-time entrepreneurs should avoid:
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- It takes time for most businesses to take off. Many businesses fail within the first six months because their capital only allows them to survive in deficit for four. Ideally, business capital should take care of operational expenses for a year, or at the very least six months. This is a safety net that business owners should have.
- Some business owners become overconfident that they ignore the competition. This is a huge mistake, since all the competition needs to do is offer a similar product or service and slash their prices. That alone could prove devastating to smaller businesses.
- Some businesses fail because the owners put all (or a majority) of their eggs in one basket. Business owners should always have a back-up plan for when their biggest clients decide to terminate their contracts.
- For businesses with more than one owner, if partners aren’t flexible enough to meet halfway especially on issues that could potentially affect the future of the entire company, that could mean the end. When the decision-makers of the company are at odds with one another, time, effort, and money could be lost. And before anyone knows it, the company could be going under.
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Dougherty Marketing is a company that has helped hundreds of groups and individuals start their business and achieve success through leadership skills training. Find out more about Dougherty Marketing by visiting its official website.