Running your own business can be the ultimate dream, but once you get there, it isn’t always easy. With So many factors to take into consideration, both legally and for the safety of your business and staff, you may find yourself becoming overwhelmed. However, if you find yourself in this state of mind, it is important to take a step back and assess all angles before making a big decision. Many small businesses encounter these common mistakes, and so we are here to advise you of the ones to avoid, keeping your business rising from strength to strength.
Hiring the wrong people
When expanding your business, you may feel the pressure to hire any applicant to simply fill the role. It is important to take your time, assess all factors of this new employee and be sure not fall into The Halo Effect – an aspect of the hiring process in which the hiring manager falls blind to downfalls whilst praising on few factors that create a false halo. Create an in-depth list of requirements to be met and take your time through the hiring process. You should also involve as many people as possible during the interview stages to gain a wider opinion that covers all aspects of each candidate, leading you to the ideal employee for both the role and the business.
Lacking confidence if changes aren’t instant
When it comes to the growth of your business, patience and perseverance are key qualities. It is unlikely that things will positively unfold in an instant, much like how Rome wasn’t built in a day. Time, care and thought must be injected into your business daily and growth may take a slow and steady approach. Do not let your confidence lessen, as each day is a step in the right direction. If you find yourself in need of motivation, create a realistic timeline with achievable goals for the next quarter, allowing you to achieve regular small successes.
It can be simple for a business owner to see an opportunity for profit or recognition and jump for it. However, this opportunity may not rest in line with your brand and services and can create a ‘blur’ in the way of your offerings and employee roles. It is important not to overextend as focusing on too many aspects of your business could lead to a potential derailing. Of course, there is always room to grow your company, but this action itself requires intent focus and dedication to merge into a new business pathway whilst allowing your employees to remain aware and attentive of the change.
Not actively tracking your progress
Tracking your progress is extremely important for businesses at all stages. From SME’s to large corporate firms, tracking will allow you to become aware of what is and isn’t working for you. There are multiple aspects to track, from your calls, emails and other enquires, through to your cashflow. You shouldn’t fear finding a mistake, you should instead learn from these and use your findings to guide your business to improvement, taking it to the next level.
Not aware of your competitors’ successes
As well as tracking your own businesses progress, successes and failures, you should take the time to look into those of your competitors. Start by monitoring those that have a high success and recognition rate and study aspects such as their use of marketing, team size, costings and service offerings. Assessing these regularly will ensure you become aware when a success or failure occurs, and you can utilise this information to leverage your own businesses progress.
Here at Hammonds Chartered Accountants, we are on hand to offer valuable support and professional advice to your small business. To arrange an appointment with a member of our team, call 020 8249 6328 or email where we will be happy to help.