Whether preparing to launch a startup or operating a company for several years, it’s typical for small business owners to make some mistakes along the way. Errors can affect your bottom line, impact your business insurance and may take significant time to recover from. Here are a few common mistakes that entrepreneurs make so that you can avoid the same pitfalls.
What Are the Most Common Errors That Small Business Owners Make?
1. Not Doing Market Research
To gauge if your product or service is viable and can bring in profits, market research is a must. This includes collecting data to determine who and where your ideal customers are. You also need to research competitors and whether your intended market is saturated. The more homework you do now, the more you’ll save on startup costs and time before launching a business.
2. Inadequate Insurance Coverage
You’re likely putting a significant amount of capital and long hours into your business. Protecting it against property damage, lawsuits, and other liabilities is worth the financial investment. Unfortunately, some entrepreneurs believe they can go without business insurance. Others may not have enough coverage or the wrong type for their company’s unique needs. Either of these scenarios can put your business at risk of lawsuits and bankruptcy.
3. Not Having a Website
Most consumers are going online to find local restaurants, shopping outlets and other businesses. It’s convenient, fast, and helps form customer connections. Not having a website to promote your products or services is comparable to not even existing. While traditional advertising such as print, radio and television ads are still feasible, building and maintaining a website is a surefire way to draw customers in.
4. Neglecting Accounting & Bookkeeping
Some small business owners may not have the acumen to stay on top of their company’s payroll and other financials. Ultimately, accounting and bookkeeping tasks fall by the wayside and can put you at risk of having cash flow problems. It’s critical to have someone on staff or outsourced who specializes in tax and business insurance matters. This can help prevent you from paying fines and penalties for missed deadlines and non-compliance.
You want your business to thrive. First State Insurance Agency wants to help protect your operation by providing you with reliable and comprehensive coverage. As an independent firm, the team of professional agents can shop around for affordable business insurance from some of the nation’s leading providers. You can also count on receiving customized protection designed to meet your company’s unique needs. For your convenience, the agency has offices in Beatrice, David City and Hickman, NE. To learn more, call (402) 979-7585. You can also request a free, no-obligation business insurance quote online.