When you start your first business, it can be a hectic, giddy experience. You can often get so swept up in the sheer thrill of going it alone – walking away from employers and dictating your own way of life – that you forget to attend to some minor detail or some important element of your operation. While it might not seem important in the moment, a mistake like that can often cost you dearly later down the line, so it’s critical to avoid that situation wherever you can. Here are 8 things that first-time business owners often forget.
1. Funding is an ongoing process
When your business is brand new, you’ll almost certainly incorporate a funding plan into your overall strategy. However, once you’ve started making a profit, you might forget that you still may need to acquire funding in order to stay afloat. This goes double if you’re struggling or if there’s a period during which your business isn’t doing as well as it should. At times like this, you still need to secure funding, so make sure to talk to investors and find other sources of income if you can. Even taking out £500 loans can help your business to get out of a tight spot, so don’t neglect any avenue!
2. You don’t have to compete with everyone
We understand that being a small business owner comes with a certain hunger. You want to prove that your business is the very best option available for consumers, and a big part of doing that is proving yourself against your competitors. However, as a small business owner, you really don’t need to compete with everyone. Other businesses should be seen as friends and rivals rather than as bitter enemies; cultivating a negative attitude is only going to hurt you in the long run. You never know who your allies might end up being during a difficult time, so don’t alienate other businesses.
3. You need a website
Your business absolutely needs a website if you want it to succeed. When you’re just starting out, you might think that simply creating a social media presence and waiting for the engagement to flood in is enough, but this is just not the case. By creating a website, you’re showing a professional side to your business, one that means customers and clients will take you more seriously. Your website should be sleek, professional, and well-designed; it shouldn’t leave customers scratching their heads and wondering how they’re supposed to navigate it.
4. Analytics are critical
When you’re getting good feedback for your business, it can be easy to lose sight of the big picture and start basking in the positive comments you’re getting. They’re something to be proud of, naturally, but they don’t necessarily translate into good analytics. You need to make sure that you’re constantly watching your metrics and looking for places where you can optimise your business strategy. Are there any areas in which you could significantly improve what you’re doing? As a business owner, it’s a good idea to always be looking for areas of growth.
5. You’re vulnerable to cybercrime
This is a major slipping-up point for many business owners. It’s all too easy to think that cybercrime is something that happens to other people or other businesses, but the fact is that your business is vulnerable to it. Whether it’s your content creation backend, your website, or even your e-commerce platform, cybercriminals are always looking for ways to steal your data or your money, so it’s important to protect yourself against them. There are many ways you can do this; make sure to create strong passwords, for example, and always encrypt user data if you’re asking for it.
6. You can always branch out
Branching out into other areas of business is not a betrayal of the reason you started your enterprise; it’s growth, and you should welcome it with open arms. If a new opportunity presents itself – that is, if you discover a new product or service that you could potentially move into – then you should definitely pursue that avenue. This is especially true if there’s a large degree of demographic crossover between your current business strategy and the one you’re potentially looking to implement. As we said, always be on the lookout for growth opportunities!
7. You don’t have to be cruel
There’s a misconception among small business owners that you need to be cruel in order to get ahead. The truth is that cruel business owners simply don’t get very far in life; while they may make short-term profits, they always end up with a negative reputation among staff, which means their turnover is high. This, in turn, affects productivity and means they find it harder to attract and retain staff. You should, of course, have a degree of ruthlessness in your business dealings, but that doesn’t mean you have to be a cruel entrepreneur.
8. Your business plan is ongoing
Too many business owners treat their business plan as a single, enshrined document that can never be changed or altered. The fact is that thinking in this way is a great method of ensuring that your business stagnates and never reaches its full potential. You should always be revisiting and revising your business plan; check for structural weaknesses within the document, or areas of improvement, and work through them to make it as good a plan as it can possibly be. As ever, don’t be afraid to seek outside help with this process, as a fresh pair of eyes is usually helpful in spotting things you’ve missed.
