When we start our business, most of us have a good idea and a plan to carry it out. Everyone should have a plan, but we need to be flexible enough to alter it according to circumstances. What no one tells us if we don’t ask is about all the mistakes we might make which can cost us money. It is always useful to be armed with a few tips, so here are some things I have learned.
1. When thinking about advertising and marketing, consider the best strategy to promote your business. What do others in your area of business do, and does it work for them? I thought that it would be useful to be in Yellow Pages (or the on-line equivalent, Yell.com). It cost me a fair amount of money until I worked out that these sorts of directories are really only effective for tradesman and specialist retailers. This leads me to:
2. You may find that one of the best ways to find new business is to go out networking. This involves getting out of your comfort zone a little, especially if you have been an employee and you are an introvert.. There is plenty on this site about networking and vast amounts of information available on-line, so look at BNI and other breakfast groups, and think what most suits you in terms of networking: formal, less formal, morning, lunchtime and evening.
3. Do not be afraid to ask for advice. If you have a problem, it is not a failure, just a learning process. Most people will be happy to make a suggestion.
4. Going on from item 3, many of those who can help are in your business. Do not look on them as competitors. They are colleagues who have the same issues.
5. There are quite a lot of nuisance telephone callers. I do not mean the cold callers in general. They have a job to do. However, deal firmly with the really pushy ones, because they will often try to sell you something you don’t need. If the product or service sounds useful, do some research and call back.
6. Never give your credit or debit card number to a cold caller. It sounds obvious, but it is an easy thing to do in a weak moment.
7. Some cold callers are out-and-out scammers, or crooks. They will try to sell you advertising in a police or fire service magazine or in a magazine of a charity, or ask for a donation to help the poor children in your area. Any of these is a red flag. The magazines probably don’t exist or if they do, they have nothing to do with the scammer. The charity for children will be a fiction too and someone has your card number if you are not careful. If you are suspicious, ask for a number to telephone back, or ask for the name and address of the company calling and the name of the owner. Any resistance to this and you know you were right to be suspicious. I fell foul of this trap once, too.
8. Do not borrow money against your house, and if you do borrow make sure that the payment terms are reasonable and your plan really supports the repayment schedule. Don’t chance it because the worry isn’t worth it.
9. If you are not up to keeping your accounts in apple-pie order, get someone else to help. Do not leave it to your accountant at the year-end because completing a year’s accounts from scratch can be costly. A good bookkeeper is well worth the investment.
10. Make sure you have all the insurance you could possibly need. Of course things shouldn’t go wrong if we are careful, but sometimes they do. If we are insured it should not be a problem, at least in financial terms.
None of us gets everything right. We learn and move on, and we ask for help when we need it.
One thing we can say is that running a business is never dull. What pitfalls have you seen along the way?
© Jon Stow 2010