Innovation through money
If you are going to start your own business or have just started your own business. Then you should avoid making some mistakes, which will play an important role in making your business successful.
1). Proper planning of business
What are the mistakes that we should not make in business, otherwise the business cannot be successful. By the way, if observed, everyone makes common small business mistakes, including big businessmen and if you have just started a new business. Then there may be mistakes, there is no shame in that.
However, if you want to avoid mistakes, you don’t need to repeat those mistakes. You can learn from the mistakes made by others by “learning from mistakes”, it saves you time.
The main reason why any trader cannot succeed in his business is because he does not have a proper business plan.
Imagine yourself if you go on an unknown road without Google Maps, you will often choose the wrong road and end up not reaching the right place and it will work the same way for your new business.
This is one of the most important mistakes that new entrepreneurs often make. Which leads to the downfall of their business!
So it is important to have a business plan for what goals you want to achieve in the next 3 to 4 years.
Also, if you want to raise funds for your business or take a business loan from a bank. So for this also you need to have a business plan.
Because a business plan helps you stick to initial goals to make your business a success. So whenever you think of starting your own business, first of all you have to plan your business.
How to Create a Business Plan: While creating a business plan for your business, you should also describe the products you sell in it. Along with this, you should also include the research done on your competitor.
If you include the following in your business plan, your business planning will skyrocket!
How will your business be managed?
How much funding do you need to run your business properly?
What are your marketing and sales strategies?
How much return do you expect to get for the next 3 to 5 years?
2. Fear of failure
One of the mistakes that new entrepreneurs often make is that they always have the fear of failure in their mind! There is profit and loss in business.
While there is nothing wrong with this, it may happen that your business does not succeed; But if you don’t try your best, how do you think you can make your business successful.
While starting any business, you should keep in mind that failure is a part of the process of achieving success.
Also, after your business is successful, you will have to go through some hardships for the appreciation that will be given to you.
The process of learning from your failures and your ability to continue is the key to making your business successful.
So you should never be afraid of failure, because even if you fail, you will learn something. If you want to start a small business, here are the most successful small business ideas in India for you to work on:
3). Inadequate funds for business
Often the main reason behind the failure of a new business is that the entrepreneurs do not have enough funds for that business.
However, the amount of money required to start your business depends on the type of business you have.
For example, if you want to start a restaurant business, you will have to invest a lot in the beginning.
On the other hand, if you are doing an online business, you don’t need to invest much in it initially.
If you want to know how much investment your business needs, your business plan can help with this.
That is why it is essential that your business plan should estimate your startup costs and how much you will need to invest in your business?
Some easy ways to raise funds for your business:
You can work on part time business ideas while working. Funding your new business using your monthly salary may be the best solution for you.
You can use your personal savings to promote your new business.
Use your retirement money for your business.
For your business, ask relatives or friends or business associates for help for loans or investments in your business.
Apply for a loan from a bank, which can provide a significant portion of the amount needed to fund your business.
4). Not having the right insurance for your business
Actually, business insurance can be expensive, but it is very important in case of any mistake or accident in the course of your business.
For example suppose; If a customer in your office is injured or your office computer or system is stolen.
Then this situation helps you to deal with lawsuits related to your business.
Also, if for some reason your office equipment gets destroyed or any kind of business suffers loss or damage to property, then business property insurance can help you in this situation.
While choosing the right type of insurance for your business, you should also consider your business activities. Because there are different types of policies available for each type of business.
If you are having trouble choosing the right type of insurance for your business, you can contact one of the insurance brokers. Who can guide you in getting the right insurance for your business?
5). Charge less for your product
One of the biggest mistakes business owners often make when starting a new business is undercharging their customers for a product. So they can get more customers!
In fact, you may think that if you charge less for your product, your product will sell more and your business will likely grow faster.
Or you may think that this can get you more customers than your competitors, but you should understand that this is not always true.
Because customers believe they get what they pay for. This way customers will be willing to pay more for your high quality product.
So if your product has quality, you should sell it at the right price.
You can use different payment methods with many customers to find out how much you should charge for your product. This will give you an idea of which one is working best for you.
6). Failure to keep accurate records of your business
When it comes to businesses that are run by just one person, one of the biggest mistakes that such business owners make is not managing their business accounts properly. Find it!
Simply put, such business owners often make mistakes in tracking their income and expenses.
So you don’t need to make such a mistake, because business records are very important. The most important reason for this is that if you do not have a proper business record, you may end up paying more tax.
For example: If you have spent more than your income in your business, but you have no record of it, you will have to pay tax on the income from your business, even if you are entitled to an exemption. No!
Also, if you do not keep records of your business, you are not able to avail the benefits offered by the IRS – Indian Revenue Services!
Another benefit of this is that having good business records will benefit you in many ways, especially when you want to monitor the progress of your business or prepare financial statements. In which information about business returns is also to be obtained.
So you should keep proper records to track every penny spent and earned in your business. However at present there were many mobile apps or desktop software for this.
You can keep all your business related records safe with their help.
7). Not obtaining a license for your business
Sometimes it happens that new business owners forget to get a license for their business!
This is often the case if you manage your business alone or work from home.
If you want to do business properly, you need to have a general business license.
If you do not even have a general license for your business, it is possible that if someone finds out that you are doing business without a license. So this can give you legal problems.
And it’s even possible that you pay more fines than license fees!
Additionally, if you do not have a license for your business, you may not be able to litigate your business! You can read some of the following articles for business license:
8. Does not protect trademarks
First of all, let us tell you that trademarks i.e. intellectual property means intellectual property.
Because almost every business has its own type of intellectual property. What you will also have and if you fail to protect it, it can be harmful to you.
What is Intellectual Property: In simple terms, any kind of logo, slogan or name you use to identify or market your products or services.
So it is a trademark for your business and you must register it to protect your trademark.
By registering your trademark, you get ownership of it and no other person or business can steal your trademark and if someone uses it, you can take legal action against them.
When you start your business as a Partnership, LLC – Limited Liability Company, Corporation, you must create a separate bank account for your company.
However, if you run your business as a sole proprietor yourself, you are the sole owner of all your business assets and any profits earned by your business.
So legally you don’t need to open a separate business bank account! But still using a personal account for your business is a mistake!
That is why you should open a separate business account for your business, which will be the base for all your business income and expenses.
Along with this, you can deposit all your income into your account through various payment options and also make all payments related to your business from the same account.
Important points: Along with this, you should also note that you don’t need to use a business account for your personal expenses and don’t use a personal account for business expenses.
- Do not consult an expert
When you are starting your new business, there are a lot of things you don’t know and because of that you can make a lot of mistakes.
To avoid this, you should not avoid consulting a business expert.
You may be hesitant to seek expert advice to grow your business. Or you may feel embarrassed.
But that should not be a problem for you, because hiring experts plays a very important role in the growth of your business.
You will also get another advantage that whatever you spend on these experts, those expenses are often fully tax-deductible.
While starting any new business, you may need to seek expert help for the following tasks.