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New Business Owners, Avoid these Bad Habits That Can Harm Your Company

New businesses that falter and fail often do so not because their owners lacked discipline or didn’t put the work in, but because they simply didn’t know what mistakes to avoid. Certain business practices that may seem like a good idea can cause real problems for a new company. And then there are things business owners may be doing without even realizing it that are holding their company back. To help you eliminate bad habits or avoid them altogether, consider the following advice. 

Don’t Skimp on Planning

Yes, you’re excited about starting your new business, excited about getting your message out there, excited about finding your first customers – but that doesn’t mean you should rush into everything. Being passionate about your business is great. Being impulsive, however, can get you into trouble before your business is even off the ground. This guide on how to start a business with ZenBusiness emphasizes the importance of having a plan for your business so you know where you’re going and how best to get there. Your business plan functions as a roadmap to guide you along the way. Best of all, it’s a living document, so you can always adjust as your business grows.

One key component of a business plan to take note of is your company’s structure. You need to look at the different entities and choose the one with the benefits that will work best for your business. For example, an S corp California company owner gets pass-through taxation benefits, reduced self-employment taxes, and the option of getting tax deductions on company losses. A California limited liability company owner’s personal assets are protected from their business’s legal matters, and they usually enjoy tax advantages as well.

Avoid Taking on Too Much

There are several reasons why you might try to do everything yourself as a new business owner. You may feel you can’t afford to hire professionals to do things for you, or perhaps you don’t trust anyone to do things exactly the way you want them done. This approach can lead to burnout in yourself and loss of productivity in your company. Focus on the aspects of your business you’re good at and hire employees, an agency, or freelancers to tend to the rest. 

Don’t Assume Your Business Will Run Itself

On the other extreme, there’s the danger of being too hands-off with your business. This can be a temptation for business owners who love the idea of entrepreneurship but are put off by how much work goes into it. Additionally, new business owners may be looking forward to bringing in passive income and mistakenly assume that this can be achieved if they just leave everything in the hands of their managers and teams.

Don’t Neglect Your Finances

Business owners who are good with numbers probably don’t need to be reminded to stay on top of accounting, payroll, and budgeting. But maybe you are more of an idea person or a people person, and focusing on the nitty-gritty of finances is boring or stressful for you. If that’s the case, you absolutely must work with an accounting professional who can oversee this aspect of your business effectively. In addition, you should stay vigilant about getting timely payments for completed work. Make a point to run invoices on a weekly schedule. The easiest way is to use an online invoice maker, which allows you to customize an invoice with your brand and send it out promptly.

Don’t Be Tech-Illiterate

You can’t afford to neglect tech advances that are giving other entrepreneurs and their companies an edge. For instance, make sure your website is optimized and mobile-friendly so your customers can complete transactions with ease and security. For peak optimization, consider having a mobile app for your company that’s equipped with tools that integrate with ACH processors to receive payments and authenticate bank account information. This way, your customers can shop on the go with peace of mind.

Avoid Disorganization

At first, it may seem as though you’re just letting things slide here and there, occasionally missing a deadline, showing up a little late, or forgetting a detail. But this can snowball until everything feels completely chaotic and beyond your control. One way you can avoid this is to use apps or organizational tools like a business process map to help you conceptualize processes and keep all your business components clear and manageable. Another tip for better organization is to keep your physical spaces tidy and clear of clutter.

As a company owner, you probably already have put some time and thought into mastering best practices for your small business – but it’s just as important to be aware of bad practices that you should steer clear of. Make a point of avoiding these pitfalls and you will keep your company stronger and more productive. 

Become part of a community of other local entrepreneurs by joining the Vacaville Chamber of Commerce.

Image via Pixabay

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