Starting your own business can be very exciting; becoming your own boss and taking control of your own company is the dream of many an entrepreneur. However, there are certain things that you should know – and certain mistakes that you should definitely avoid.
Mistake 1 – Poor Planning
Going into business without a proper plan is perhaps the biggest mistake it’s possible to make. Writing a proper business plan will help you test the feasibility of your idea, attract investors and secure funding, make your business planning manageable going forwards, and give your business the best possible chance of success. At the very least, you need to understand your industry, do your market research and have feasible and achievable sales forecasts.
Mistake 2 – Forgetting the Paperwork
There are some pieces of paperwork that are absolutely vital; the annual returns and accounts, although not needed immediately, are top of the list when it comes to importance if you have a limited company. You must complete your first Annual Return and deliver it to Companies House within 28 days of the anniversary of incorporation of the company. If you fail to do this on time there is a risk that your company could be struck off, and the only way to get trading again is to go through company restoration.
Mistake 3 – Struggling On Alone
A new business needs a wide range of skills; leadership, accounting, legal expertise, information technology and much more. Some of these are specialised skills, and there’s no shame in admitting that perhaps you don’t know everything there is to know about bookkeeping if that’s not your speciality. Identify the areas where you need specialist advice and help, and outsource them so that you can focus on running your business.
Mistake 4 – Burning Out
Starting your own business will mean that you have to put a lot of effort and concentration into your work; however, it’s important to maintain a healthy work-life balance. Working around the clock is likely to strain your relationships with family and friends just when you need their support the most, so be careful that you don’t neglect them.