There are two major reasons most people go into business for themselves; freedom to make their own decisions and the anticipation of making more money. Owning your own business has its rewards and pitfalls. Here are some common pitfalls of starting a new business:
One leading cause of business failure is the market does not support the business. A lot of entrepreneurs start their business without making sure that there is a demand and a need for their products and services. They fail to research the market to see if there will be a lot of competition or if their products and services are practical. Unfortunately, too many learn this the hard way; after they have invested their time, work and capital into their new business venture.
Many new business owners are in for a surprise when they realize that they must do it all. They are not organized; therefore, they are unable to keep good financial records. They may have trouble making calls to collect on past due accounts. They would much rather be focusing on developing the business than running the business. You need to realize that running you own business doesn’t just mean doing what you like to do; there are still the day-to-day operations to think of.
Contracts and Agreements
Some entrepreneurs go into business with a partner who is also their friend. They have some of the same goals in mind; they get along well, so they don’t feel the need for a partnership agreement.
Any business that operates without a written agreement is asking for trouble. Your partner could decide to leave at any time, without notice, leaving you with all the work and all the expenses. Your partner is vital to the success of your business if he or she possesses the knowledge to keep the books or maintain the computer system. If you do not possess these skills, you will be in trouble.
A contract protects you by setting the ground rules for how money is invested and when each of you takes a draw. It spells out each of your responsibilities to the business. Before going into business with someone else, be sure to draft a written agreement that is acceptable to both parties.
Many new business owners think that the customers will notice them and flood their business right away. It is important that you have a good marketing plan and that you target your market. Get out there and make yourself known; announce the grand opening, your new product or services or the launch of your new website.
Internet marketing is the most effective and the least expensive way to get the word out. Send out press releases, write articles, speak at conferences, attend business meetings and network with other business owners. Develop relationships with other entrepreneurs whose businesses compliment yours. You can refer your customers to them and they will give you referrals in return.
Bill Bartmann is a self-made billionaire who offers online business courses so people can develop the necessary basic business management skills to be successful. Bill Bartmann’s Billionaire Business Systems has helped thousands of entrepreneurs reach their goals by showing them how to strengthen their business even during times of economic uncertainty. Bring out the Billionaire in you; visit http://www.billionaireu.com/