If you’re tired of the office grind or searching for your dream job, then setting up your own business is a great way to get the career you want. It’s not an easy road, and many new businesses will fail within their first few months.
If you have the passion and determination to succeed, however, why not give it a try? Learning from common business disasters can help ensure that your business goes the distance and make the dream of working for yourself become a reality.
Not being in it 100%
“If you could set up any business, what would you choose?” How many times have you played that game with friends? Everyone has an idea for their dream business, but would you commit to it 100%? When setting up your own business, you’re going to need to make sure that you have the passion and commitment to see it through – even when times are tough. If you’re setting up a business for the wrong reasons, perhaps you should explore other career avenues before you get in over your head.
Being unprepared (and unrealistic)
Having an idea for a business is one thing, but your idea needs to be good enough to be able to attract belief and investment from others too. If you’re seeking a business loan or capital from an investor, you’ll need to be able to convince them that your business is one to back. This means that in addition to having the ideas there, you’ll also need to be able to answer questions about finances and management – making a good business plan essential.
Not having your back covered
Several things can go wrong in business. Some will be out of your control, and others won’t be. You can prepare for the unexpected by making sure that you have financial contingencies in place and protecting your business with the right insurance. You can compare insurance rates to make sure that you pick the right level of cover for your business to cover all eventualities. Protecting your business from harm is important so don’t cut corners to save on short-term costs.
Employing the wrong staff
Having the right staff at your side is important, and a common mistake many new starters make is to hire friends and family who might not necessarily be the right fit for your business. Hiring someone you have a personal relationship with could either spell bad news for your business or your friendship. There are many arguments for why you shouldn’t hire friends and unless they share your drive and passion, it’s better to search elsewhere.
Setting up your own business requires various elements to be successful. Learning from others’ mistakes will mean that you’re better prepared and will help make sure that your business has the ‘full package’ to succeed. Preparation and planning are two key traits of successful business owners, and by protecting yourself against common disasters your business will stand a much better chance of success.
This post has been contributed by Ryan Gatt, it may contain affiliate links.