You've wanted to start your company for 10 years, and you've finally decide to move forward. You're going to make your dream come true.
While you couldn't be any more excited, you're also nervous. You don't want to make any critical mistakes that will ruin that dream before it even gets off the ground. Below are five mistakes new business owners tend to make:
1. Making budgeting mistakes.
Budgets are critical, but you need to do more than make one: You also have to follow it and stick to it. Experts note that it's quite common for companies to run out of money because owners just don't watch the bank account closely enough. Remember that there are a lot of expenses, so simply making a good profit doesn't mean all will be well if you don't manage money.
2. Not being honest with themselves.
It's one thing to be confident, and you may even want to act overconfident when talking to investors. You're trying to sell them on the idea. With yourself, though, always be honest. Don't get so wrapped up in the excitement that you won't admit there are potential problems. You need to see them and honestly address them to overcome them.
3. Starting too big.
Yes, you want to have the best possible product and you want to have facilities all over the United States, not just in Minnesota. However, don't get so caught up in expansion and doing too much that your company can't survive. It takes a long time and it's incredibly expensive. In many cases, you're better off to start small and take your time working your way up.
It's your company, so you want everything to be perfect. This may push you to do it all yourself. You don't trust anyone else and you don't want them to ruin your dream. While that's understandable, it can hold you back. You'll just have way too much on your plate. Make sure you know when and how you can delegate things to others -- and be smart with your hiring so that you know you can trust them.
5. Not protecting intellectual property.
Your intellectual property may be the very thing that makes your company succeed. Don't rush forward so quickly that you don't address the need for copyrights, patents and trademarks. Don't let someone else steal your million-dollar idea. Understand how to legally protect yourself so that you alone can capitalize on all of the work you've put in.
Starting a business is exciting. It's the stepping-stone to the career you've always wanted. As you work to avoid these common mistakes, always be sure that you understand the legal process and how to set your company up for short-term and long-term success.
Source: Nov. 30, -0001